How a Merchant Account Works in Credit Card Processing
Digital payments and credit card use is growing. This means more merchant accounts are being opened. A merchant account is a type of bank account that allows businesses to accept credit and debit card payments. In this article, we’ll take a closer look at how a merchant account works and why it’s essential for businesses. […]
How Merchants Can Dispute a Chargeback
Chargebacks can pose significant challenges for merchants, impacting their revenue, reputation, and overall business operations. However, merchants have the opportunity to dispute chargebacks and present their cases to challenge the validity of the claims. In this comprehensive guide, we outline the step-by-step process for merchants to effectively dispute chargebacks, providing insights and strategies to increase […]
The Average Chargeback Rate
Chargebacks are an integral part of the payment processing industry, representing a mechanism for customers to dispute transactions and seek refunds. For merchants and payment processors, monitoring and managing chargeback rates is crucial as they directly impact financial stability, customer trust, and overall business operations. The average chargeback rate is 0.60% across all industries. This […]
Future Delivery in Payments and its Risk
Future delivery allows customers to purchase goods or services that will be delivered at a later date. This approach offers convenience and flexibility to both merchants and consumers, enabling transactions even when immediate availability is not possible. However, while future delivery presents numerous advantages, it also introduces unique risks that businesses and payment processors must […]
What is Merchant Discount Rate (MDR) in Payments
Credit card processing companies have developed various pricing models for processing credit card transactions. A key cost in credit card processing are interchange fees, which are paid to issuing banks and credit card networks. To ensure profitability and cover interchange fees, payment processors establish rates that encompass these costs. However, the use of the Merchant […]
Chargeback Rate by Industry and Business Type
The concept of chargebacks has become increasingly important for businesses across various industries. A chargeback occurs when a customer disputes a credit card transaction and requests a refund from their bank or credit card issuer. While chargebacks serve as a form of consumer protection against fraud or unauthorized transactions, they can have a profound impact […]
What is AVS in payments?
In today’s digital era, online transactions have become increasingly prevalent, making payment security a top priority for businesses and consumers alike. One critical component of payment security is the Address Verification System (AVS). AVS is a widely adopted security feature in payment processing that helps authenticate the address provided by a cardholder during a transaction. […]
Chargeback Rate by Country in Payments
Chargebacks are a common occurrence in the world of business and their rates can vary significantly from one country to another. Understanding the factors that contribute to these discrepancies is crucial for merchants, financial institutions, and policymakers. In this article, we delve into the factors influencing chargeback rates by country and explore their implications on […]
What is 3D Secure in Payment Processing?
With the rapid growth of eCommerce and online transactions, ensuring the security of online payments has become crucial. In response to this challenge, the financial industry introduced 3D Secure, an authentication protocol designed to enhance the security of online transactions. This article explores the concept of 3D Secure, its benefits, and its impact on online […]
Chargeback Statistics in Credit Card Processing
In the world of credit card processing, chargebacks are an inevitable reality that businesses must deal with. While chargebacks serve as a valuable consumer protection mechanism, they can have significant implications for businesses. To gain a deeper understanding of the impact of chargebacks, it is essential to explore chargeback statistics in credit card processing. By […]