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.