WHAT IS THE CHARGEBACK COST WITH ECIGARETTE MERCHANT
ACCOUNTS?
A merchant account holder can easily do
business by accepting payments through
the credit or debit cards. There is a
huge profit margin for the successful
merchandise business. In order to run a
business properly, a merchant should be
able to handle the business even in the
poorest market situations. There are
various charges applied for a merchant
account. These charges may include the
setup or registration fees, transaction
fees, statement fees, annual fees,
minimum monthly fees, etc. But there is
also one important fee which is called
as charge back fee.
If a merchant is not capable of
providing satisfactory service to the
customer, then the merchandise business
may crash down. The charge back fee is
charged to the merchant account holder
when the customer returns the purchased
goods or products and demands for the
refund. However, the fund is returned to
the customer by the banks or the
merchant account provider. This amount
is charged to the merchant by the banks
and the financial institutions. The fee
amount is high as compared to other fee
structures. This fee is charged against
the cancellation of the transaction
which has already been processed. Due to
some genuine reason, the customers
return the purchased goods to the
merchant. In fact, the merchant has to
bear the loss as well as the burden.
The charge back fee is calculated and
charged to the customers at the end of
the month. Most of the merchants try to
avoid these problems but it will be very
difficult when the monthly bill arrives.
The charge back fee, if charged, is
added with the monthly bill to the
merchant. If a merchant is charged the
charge back fees on a regular basis, due
to inefficient business marketing, then
there is a chance of that merchant being
eliminated from the market place. The
people, who face problems with a
particular merchant, will not like to
buy product from that merchant. This
affects the business. So, in order to
save themselves from the huge charge
back fees, the merchant should handle
the merchandise business in an efficient
manner.
The reputation of the merchant is very
important to gain a high level of
position in the market. Due to the
charge back fee system, the merchandise
businesses have maintained a good level
of business progression. If a merchant
is charged a charge back fee, then the
merchant should immediately solve the
problem. If it is ignored, then a
serious problem awaits when the merchant
receives a long and heavy bill against
him. The bank or the credit card issuing
companies do not share the costs but it
has to be paid by the merchant, itself.
If a charge back fee is imposed on the
merchant, each charge back cost will
decrease the profit of the merchandise
business. The rate of each charge back
fee may be up to 5 dollars. The charge
back fee is also considered as disease
for the merchant account. It affects the
functioning of the merchandise business
like how the disease infects.
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. |