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MOTO HIGH RISK Merchant Account Processing Rates

In an industry where direct marketing is in vogue, the dealers usually communicate with their customers through e-mail, telephone, or mail, often with the use of cold calling methods, in order to elicit “call-to-action” from a customer. The “Mail Order and Telephone Order” (MOTO) merchants work in an environment where the card is absent. This is similar to eCommerce where the merchants end up paying higher amounts for processing when compared to the merchants who operate physical establishments. This is because, in the MOTO operating environment, there is high probability of the occurrence of customer disputes which results in chargebacks. There are a few dissimilarities between the 2 card-not-present dealer types in the manner in which the card payments are accepted which results in different capabilities for payment acceptance.

The processing of payments in a MOTO merchant account are done by using the terminal software which is installed on the personal computer with the help of virtual terminals. Hence the web browser can be used for the processing of transactions on the web site of the service provider.

Following are a few processing fees which a MOTO merchant may be charged for:

-      Discount Rate – These rates should be the same for establishments which opt for direct marketing as well as for the web-based merchants. A reasonable discount rate is around 2.19% or even lesser. One must ensure that the provider of merchant accounts should charge a lesser rate with respect to debit cards. In this case, a discount rate of 1.98% is acceptable. The prospective processor for payments should mention the pricing model used by them in order to select the best options.

-      Transaction Fee – Almost all the providers of merchant accounts charge a transaction fee. It is usually close to $0.25.

-      Set up and Application fees – A merchant must always remember that an application fee or a set up fee must never be paid.

-      Virtual Terminal Fee – A Virtual Terminal is nothing but a service which helps the MOTO business merchants to enter the payment information of their consumers via a web – browser. This service directly enters the consumer information into the bank system of the merchant account. There should be no charge taken setting virtual terminals. A monthly charge should also not be collected.

-      Statement Fee – All the merchant accounts have a fee to be paid at the end of every month. The statement fee is one among the other entities which is charged on monthly basis.

-      Support Fee – A merchant account owner should resist from paying the support fees.

The main processing fees difference between direct merchants and eCommerce is due to the payment with regard to gateway-related charges. Payment Gateways are not used by direct merchants since their consumers do not use the internet for placing orders. Instead, virtual terminals are used and the details are entered manually. The payment acceptance resolution for direct marketing provides a cheaper service for the processing of payments when compared to the eCommerce solution.

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.