Businesses that have opened a new merchant account for their retail website may soon benefit from a recent Federal Reserve Board ruling that will affect the transaction fees they pay to debit card issuers..
PCCG Payment Processing Blog
To combat chargebacks, high-risk merchant accounts vital for online dating
By Patricia Carlin Consulting Group
Research suggests that as many as 40 million Americans have frequented online dating websites, which shows the high market potential for these companies. That potential is even greater when looking overseas – in China, for instance, 140 million individuals say they have used an online dating website.
Despite those attractive figures, many online dating websites experience trouble getting off the ground for various reasons, not the least of which concerns payment processing. Financial institutions consider dating websites high-risk, partly because these ventures can experience a high rate of user turnover.
Visitors unsatisfied with their online dating experience might ask for a refund. Others may try to force reimbursement via a chargeback. While data shows only one in 10 users leave an online dating website within the first month, banks continue to hesitate when it comes to providing a merchant account.
As a result, it is crucial for e-commerce businesses involved in this industry to seek high-risk merchant accounts from reputable institutions. Since the costs and fees related to these accounts can vary depending on the provider, it helps to work with a trusted consultant that can connect companies with a suitable and affordable financial institution.
That type of strategy can also provide online dating companies with a leg up if they eventually plan to expand globally, which may help them grab a bigger piece of the industry’s $1.05 billion pie.
Her Experience Is Everything
Leading expert in Card-Not Present Payment Processing and Merchant Account Management.
More From The Blog
A strong payment platform is key as the holiday season approaches. In a tight economy, consumers may want to spread their holiday spending out over the course of a few months, which means merchants will need to have their websites optimized sooner rather than later.
The act of swiping a credit card in the checkout line of a store could soon be replaced by the act of waving a smartphone in front of a sensor, which may have greater implications on mobile commerce and internet retailers that provide..
Customers are often on the lookout for bargains, price breaks or anything that convinces them that they are obtaining a great value for a service or product. That’s true whether they are shopping in a brick-and-mortar outlet or at a retail website.
Owners of international, high risk or emerging businesses that require merchant accounts to accept credit cards online have many factors to consider when choosing a reliable merchant service provider.
Online merchants face more risk than ever. With the continued evolution of mobile payments and emerging technology, fraudsters are finding new vulnerabilities to exploit and new ways to steal money from your bottom line. Unfortunately, there’s also another culprit lurking around, often unknowingly denting your bottom line – the overuse of fraud tools.
Once a company determines it requires a high-risk merchant account, it must perfect its customer service model. In an era driven by social media interactions, the consumer-business relationship is more direct than ever before.
Established internet businesses may eventually find that the opportunity is ripe for them to expand to different international markets. This can be a critical step in the progression of any business, and entrepreneurs need to ensure they’re approaching this milestone with caution.
A new study on the buying activity of consumers using tablets may encourage more businesses to develop a mobile payment strategy that accommodates the devices. Arranging such a payment service in conjunction with offshore merchant accounts may allow companies to tap into a profitable market at a lower cost.
With the limited supply of US merchant banks that want this business and the increase in affiliate and friendly fraud targeted towards the dating industry, it is virtually impossible to keep a dating website live long-term..
Whether they are working with domestic-based merchant accounts or offshore merchant accounts, e-commerce businesses need to keep on top of the money they spend to maintain these financial tools…