Why Underwriting Is important for Merchant Service providers

In times of fast paced business solutions, the concept of E-Commerce is fast gaining momentum. The term basically refers to conducting and accepting payments online through the Internet. Even if you do not have an online store, you can increase your business sales by accepting credit card payments. This is because you may have customers who prefer making their credit card processing ISO programs payments by credit cards. To accept payments through credit cards, you will need a merchant account in any financial institution and the services of an Internet gateway provider organization. Processed payments will be deposited in your merchant account. To connect to the gateway account, your company website will need some technical modifications to accept credit payments. The web developer will add an order for to a shopping cart, where a customer can add personal details as well as credit card information.

As a part of the merchant services, the gateway organization will validate the credit card information by sending the details to a credit card provider company. After the validation, the gateway will receive an acceptance or decline message depending on the authenticity of the information. The message will be displayed on the screen. After getting the acceptance message, the payment will be transmitted to the merchant account. These payment gateways provide payment solutions to web merchants, telephone order merchants, retail and mobile merchants. Web merchants can connect to the gateways through server-to-server connection for submitting transactions to the payment gateway.

There is also the simple Integration Method(SIM). Here, the gateway monitors the entire transaction process data collection, data procession and response to the merchant. On the other hand, the retail merchants can purchase certified, ready-to-install POS(Point of Sale) solution or a device that is integrated to the gateway organization. What a large number of people do not know is that if you have a credit card you cannot simply utilize it any shop as you wish. Not every mall or shop owner is in a position to accept your credit card. The shopkeepers and mall owners must be able to provide what is known as credit card merchant services. Only then can they receive any cash from you in the form of credit cards. The primary requirement that for a shopkeeper to be able to provide credit card merchant services is that he must be trading for a minimum of two years.

In current times, it is of paramount importance to be able to provide credit card merchant services and thus accept credit cards. More often than not customers today make their purchases with the use of credit cards. As a result if you cannot accept credit card transactions, more than a few of your customers will choose to make their purchases elsewhere. Also, sometimes, in case of certain unforeseen situations, your customer could run out of cash and thus may wish to use a credit card instead. It is always best for your business if you are able to provide such customers with the facility of credit card merchant services.

Once you realize how crucial a credit card merchant service is to your business setup, you need to think about what all credit cards you actually wish to accept. There are a wide variety of the forms of credit cards that you can accept from your customers. These could be perhaps a block acceptance of Visa, Switch, Mastercard, Solo, JCB and also Connect. Or you could accept American Express or then Diners Club and various other specialist offerings. The process for application would be such that you could consider applying for a status at whichever bank you hold an account at. This bank will prove to be of considerable help to you unless and until it is a small, specialist banks that can offer interest but much fewer services on business accounts. Figuring all this out and attaining merchant status could be a major push to your business and requires your consideration at the earliest. The Scenario: You find yourself with an opportunity to successfully complete a sale with a large merchant. Excitedly, you have them sign the application and graciously accept the most recent processing statement. Finally, you submit the application and think about your imminent future success.

It seems like you did everything right. You may have even stayed completely by the book on how to successfully control a sale and gain satisfaction. However, one important part of sales in the payments industry is making sure to ask the right questions. The outcome: You find yourself getting calls from underwriting saying they cannot assure that your newly acquired merchant can be approved. They explain that this new client, although they have a storefront, is considered high risk – and after double checking the credit policy you notice that they are indeed listed as high risk.

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