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HOW MUCH DOES OFFSHORE MERCHANT ACCOUNT CHARGE BACKS COST YOU?

You have obtained a new merchant account for your company and are feeling very happy that your business will gain a lot from it. You have also seen the profits of your business rise but one fine day you will get a shock when you see your merchant account bill.

The shock that you received was because you were not aware what the cost of charge back for you is. It is said that these charge backs appear only “under the cloak”. For small business owners they are like Roaches, which carry diseases, are disgusting and filthy and the hardest part is: they cannot be killed.

Nobody takes the responsibility of creating or bringing them. No one will also admit that they have it with them until they see their bill. Businessmen let them do their damage instead of accepting the fact of their existence and try to manage them. With so much damage occurred to many businesses I wonder whether people don’t see them or refuse to see them.

They are Chargeback’s! These are nothing but claims made by unsatisfied customers to their card company for the purpose of getting their hard earned money back. Many merchants get scared to even talk about the topic, let alone taking steps to minimise it. But if you don’t accept their existence and take steps to control it you will be in for a major shock when you get your merchant bill.

Sometimes you may wonder why you are the only one to bear the brunt of chargeback’s. You may wonder why not share it with the credit card companies or the processing bank of the merchant account or the provider of merchant account. Unfortunately, you have to bear the entire cost of a chargeback.

Apart from stratospheric fees and rates associated with merchant accounts the chargeback’s are a huge cost to incur while processing credit cards. This article will explain how much these chargeback’s will actually cost you.

The various fees and charges that are applicable to you when a customer makes a chargeback are as follows:

  • Chargeback Fees: This fee is charged to your account each time a chargeback transaction is processed. It will decrease your company’s profit by thirty five dollars.
  • Retrieval Fee: This fee is charged when investigation is required. This fee will cost you ten dollars per transaction.
  • Review & Filing Fee: You can bring the dispute this far if you want to but it will cost you a whopping four hundred dollars. Therefore, you should bring it this far only if the transaction value is very high.
  • Lost Goods: In spite of the lost revenue you may also not get back your goods and therefore let us consider the average loss, which is fifty dollars according to historical data.
  • Fulfilment: You will also loss all the money which was spent on postage and packaging. It is about thirty dollars.
  • Wasted Time: “Time is money”. Therefore, you would have spent time that is worth eighty dollars for all this.

Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.