Most Common Merchant Account Issues Explained


22 July 2021


Merchant Account Issues

Whether you are just considering the prospect of setting up an online store or looking for ways to enhance your efficiency as an existing business on the web, knowing what problems you are likely to come across as a merchant account owner will help your decision-making on the way.

This article will be useful for anyone daunted by the possibility of creating and running a high-risk merchant account. Here, we explore four frequently occurring problems with bank accounts for credit card payment and how to avoid and/or fix them.

What Is Considered High-Risk?

What Is Considered High-Risk?

The degree of risk associated with your merchant account is largely determined by what kind of goods and services you offer. This is part of a common classification used by banks and other financial institutions to work out the most fitting approach for their corporate customers. Traditionally, businesses in agriculture and gardening, education, drop shipping, SMM, babysitting, and other similar areas are labeled relatively safe and enjoy favorable treatment by banks.

However, this doesn’t mean they won’t suffer from fraudulent transactions, chargebacks, and more documentation that they can manage when they go online. Contrary to these activities, the following areas are believed to be high-risk:

  • betting
  • forex brokerage
  • booking
  • online dating
  • adult goods and services
  • food sales
  • pharmaceutical sales.

If your prospective or existing business belongs to one of the categories on the above list, it means you have a greater than average chance of facing fraudulent activity and other risks that are typical of online payments. Fortunately, though, there are solutions to relieve the hazards for both you and your customers.

High Fees and Restrictions on the Part of the Bank

High Fees and Restrictions on the Part of the Bank

As mentioned above, financial institutions seem reluctant to partner with companies in high-risk sectors such as forex brokers. This is not to say that such a partnership is impossible. Instead, you are more likely than not to be charged high fees for the cooperation, which might drain your revenue and are often combined with further restrictive practices. For instance, banks often limit the total transaction amount per unit of time, causing many startup owners to either switch to costlier plans or start multiple accounts.

Credit Card Fraud

Credit Card Fraud

One of the merchant’s biggest fears, fraudsters have many opportunities to rob your business of its honest earnings. Payment card fraud comes in numerous forms, with new practices being developed every moment. This applies to low- and high-risk businesses, although the latter might need more serious measures to protect themselves and their clients from online scams.

Common solutions include layered user authentication and payment verification systems as well as dynamic restrictions to exclude certain countries, banks, or partner companies from potential transactions.

Overwhelming Documentation

Financial institutions will most probably ask you for extensive reports to prove your credibility as a partner. This is especially true if your business has been classified as high-risk. In this case, it is vital to keep a clear and complete record of your activities under the specific requirements of the banks and/or payment providers that you are willing to work with.

Too Many Chargebacks

Frequent requests for chargebacks, or refunds, can damage your reputation as a business, undermining customer trust and the banks’ willingness to cooperate. The disputes that often arise in such cases tend to be costly to process, too.

One way to minimize chargebacks is to provide accurate and clear descriptions of your goods and services, always meet your delivery deadlines, and ensure your overall customer service is decent. However, it is also advisable to incorporate automatic chargeback prevention tools that will identify high-risk transactions and deal with the problem before a dispute is initiated.

An All-Round Solution to Manage All the Risks at Once

While navigating the difficult landscape can be confusing, especially with little experience in the field, business owners do have a choice. Intelligent payment gateways such as Maxpay offer automation as well as flexibility. Consider investing in an online payment product that will enhance your payment security and prevent overwhelming chargeback numbers without taking too much time to set up and manage. What you are likely to get is a smooth, trouble-free merchant account.

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I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at Content Rally.

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Avoid Negative Equity

How Do You Avoid Negative Equity On Your Next Car Loan?

Car finance allows drivers to spread the cost of a new or used car into affordable monthly payments. By borrowing money from a lender, drivers can purchase a car and pay the lender back in monthly installments until the end of the agreed term. Negative equity is a term you may hear often with car finance, and for many drivers, it is best to avoid it. Find out how you can ensure you don’t end up with negative equity and what to do next if you find yourself in this situation. What Is Negative Equity? In car finance, negative equity is when you owe more on your loan than your car is worth. Negative equity can be known as outstanding car finance or an upside-down loan which means if you sold your car to clear the loan, you still wouldn’t have been able to pay the balance off.  For example, if your settlement figure was £6,000 and your car was worth £4,000, you would still owe the finance company £2,000. Usually, negative equity happens when the value of your car drops quickly during your agreement. This is especially common with brand-new cars, as they can lose up to 50% of their value in the first few years of ownership. Here, if you want to trade in your car but have negative equity, you will need to repay the loan amount before you take a new loan to purchase a new vehicle. What Are The Reasons For Negative Equity? Basically, a negative equity situation happens for a variety of reasons. For instance, an upside-down situation in regard to a car loan can happen due to the following reasons: You might have a loan for a longer term. Apart from that, your vehicle has also gone through depreciation since your purchase. There is a no-money-down auto loan in your case, or you might have paid more than the sticker price of the vehicle due to the inclusion of add-ons.  You might have purchased an expensive vehicle, which might not have the same value that you expected during the purchase. Your debt regarding the loan is of a high rate of interest. Hence, most of the money that you are paying is going to the interest as compared to the principal. Depreciation is also a major factor in this case. Basically, the term rate of depreciation shows how fast an asset loses its value. Generally, a car loses almost 20% of its value in the first year itself. Furthermore, the process of depreciation continues to happen in the following years until the car fully loses its value. Why Is Negative Equity Problematic?  Negative equity within your car finance deal can be an issue because you will still owe the lender money even if you sell your car. In some cases, you may not be able to sell the car, too. If you find your circumstances have changed and you can’t afford to carry on with the loan, you may be charged additional fees for missed or late payments, and it can lead to much more serious financial consequences. How Do You Avoid Negative Equity In The First Place? Before you take out a car finance deal, consider these factors below to help prevent negative equity from occurring: Only Borrow What You Can Afford. If you’re in a position to buy a new car on finance, it’s important you use a car payment calculator first to see how your loan could look and make sure it is affordable. This may mean choosing a used car over a brand-new car, as older cars usually have already depreciated at their fastest rate in previous years. Put Down A Larger Deposit. A larger deposit contribution at the start of your finance agreement can help to reduce your loan amount. A smaller loan can help to reduce the risk of your car being worth less than how much you owe. Choose A Slower Depreciating Car. If you want to avoid negative equity, you could consider choosing a car that depreciates at a slower rate. Cars that hold their value will be less likely to leave you out of pocket at the end of your car finance deal.  Make Higher Payments. Negative equity can often be associated with PCP deals as they offer low payments and a large balloon payment at the end of the deal. Opting for a deal such as a hire purchase, which aims to pay off the value of the car at the end of the deal and has higher monthly payments, can help avoid any outstanding finance. How Do You Get Out Of Negative Equity? There are different ways of getting out of negative equity. However, based on your current situation, you will need to choose which way works the best for you. Basically, you will need to choose the one that goes with your budget. Furthermore, it also depends on whether you want to keep the vehicle or not. Hence, to get out of negative equity, make sure you do the following: 1. Start By Paying Off The Loan The most obvious way to pay off your negative equity is to accelerate your payment. Here, the faster you pay your loan off, the sooner you will be able to deal with the debt. One of the best ways of paying off the loan is to pay extra on the principal part. Apart from that, you can also consider paying a lump-sum amount beforehand to avoid paying interest for a longer period. Hence, you must consider reviewing your budget and savings from time to time to pay off your existing debt. 2. Loan Refinancing Here, you might consider taking out a new loan to pay off your existing debt. This will help you in getting out of your upside-down car loan faster. This works even better if you can avail of a new loan with a lower rate of interest. 3. Selling The Vehicle If you do not need the vehicle, you can consider selling off the vehicle. This way, you can get a lump sum of cash, which will allow you to pay off the loan. Furthermore, if you sell the vehicle to a private buyer, you will have the option to negotiate the price further. This will enable you to get more cash, which will further help you to pay off the negative equity. 4. Surrendering The Vehicle If you handle the vehicle to the lender, you can get out of the negative equity, too. In addition to that, if you do a voluntary surrender, you will be more likely to get out of the negative equity. Summing Up: Getting Out Of Negative Equity If you’ve not been able to avoid negative equity and need to know how to get yourself out of it, follow the top tips below: If you can still afford your current car finance payments, it is recommended you stick with the deal you have at the moment. In many cases, your deal will balance out over the duration of the loan, and the negative equity should be settled by the time you reach the final payment.  You could pay off your negative equity by paying the lender in cash.  You can hand your car back to the lender through Voluntary Termination. If you’ve paid half of your agreement off, you could return the car to the lender. It’s always best to speak with your lender first, though, to see how they could help you.  Do you have any more ideas to add? Consider sharing in the comment section below. Read More: Proven Strategies To Captivate Buyers And Sell Your Business Successfully Get On The Online Market With The Best Web Design Experts In Brisbane 8 Tips For Tech Industry CV Writing That Highlights Your Skills And Experience

Gold IRA

Can I Convert My 401k To A Gold IRA?

Retirement might seem like a long way away for a lot of us out there.  Truthfully, it’s easy to want to put that sort of thing off and not have to worry about saving for it right now.  However, this is typically not going to be the best move. Most experts recommend that we start to save or invest for our retirement years as early as we can.  There are a few ways to go about that, though.  Considering all of the different types of retirement savings and investment accounts that are out there, it can be hard to make that choice. That’s even more true as we see a ton of advertisements and advice columns out there that talk about the various options and how amazing each of them is.  How are we supposed to choose, right?  Sure, there are articles like this one, but for now, we’ll stick to one thing – a deep dive into gold IRA accounts. What Is A Gold IRA? Although they might seem like a relatively new invention, the truth of the matter is that people have been using gold as an investment for centuries – maybe even thousands of years.  So, the fact that they’ve adapted to our modern economic structure should come as no surprise.  First, though, let’s cover what IRAs are. An IRA (individual retirement arrangement) is a type of savings account that offers the holder some sort of tax benefits.  That will vary depending on the type of IRA, of course.  Self-directed, Roth, and traditional are just a few examples, and each of them has its own rules and regulations as well. Now, when it comes to the question of can I convert my 401k to a gold IRA, the answer is yes – but there are a few steps involved that you’ll want to familiarize yourself with.  One thing to be aware of is that a gold or precious metals IRA is simply a self-directed one that is dedicated specifically to that asset. All sorts of things are eligible to be placed into them.  For example, bullion and coins that fall under the requirement of gold percentage can both be added to one.  However, a necklace or ring made out of precious metals wouldn’t be eligible.  If you want help sorting that out, you can always talk with your broker to see what can work. How Does The Conversion Work? With that bit of background information out of the way, we can turn our attention to how the actual conversion works.  One of the first steps that you’ll want to be aware of is the fact that you’ll need a broker and/or custodian.  In this context, that’s just an organization that will hold onto your physical gold for you and keep the account. You can find out a bit more as far as how that works here, =r&linkaccess=abs&issn=07300743& a8, although if you reach out to potential custodians to talk with them, they can probably explain it as well.  They’re a crucial component of turning gold investments into an IRA, though, so don’t forget this part of the equation. From there, though, what should we do?  Well, you’ll probably want to take inventory of your current financial situation as a whole.  Think about how much money you want to take out of your 401(k) to actually do the conversion. Depending on how long your employer has offered the 401(k) and how much you and they both contribute, this exact amount could vary a lot.  Ideally, you won’t entirely drain your 401(k) to open a gold IRA, but some people do.  Just remember that the goal is to diversify your financial holdings and to give you an opportunity to have an asset that acts as a hedge against inflation. Once you’ve decided on how much you want to convert, you can start to initiate the process of purchasing your precious metals in whatever form you want.  Whether that’s as coins or bullion or something else entirely, as long as it’s eligible according to your custodian, you should be good to go! Thankfully, it’ll act pretty much the same as any other individual retirement arrangement, with yearly limits to how much you can contribute to it.  There will still be taxes, of course.  It’s not too hard to figure out, though, and your custodian/broker will be able to assist when needed. Why Convert, Though? One of the major questions that most people still have is why they should convert their 401(k) into an IRA in the first place.  It’s certainly worth pondering, but the answer is pretty simple.  As you can see here,, a lot of it has to do with the fact that we’re currently facing an economic recession. Combating it isn’t easy for a lot of us consumers, unfortunately.  There are a few ways, though – most of them involve utilizing hedges against inflation in some way.  Gold is a major hedge because its value isn’t diminished by things like paper currency losing buying power. So, that’s probably the main reason that it’s widely considered worthwhile to do this conversion process.  However, there’s also the fact that in investing in general, it’s not a great idea to put all of your eggs into one basket.  Keeping your assets diverse is critical, especially for something as important as your retirement. Again, even if it seems a long time away, it’ll creep up on you faster than you realize.  We all deserve a comfortable and happy retirement, especially after spending years being valuable members of the workforce.  Saving for that time of our lives is super important. Consider converting part of your 401(k) plan into an IRA if you know it won’t impact your current financial status in a negative way.  As long as you’ve done your research and you know what you’re getting yourself into, there really isn’t much of a reason not to do it – at least when looking at it from an investor’s standpoint. Read Also: Is Investment Bankers/Brokers/Service A Good Career Path In 2021? 5 Reasons Why Bitcoins Are Considered Reliable Investments 5 New Assets To Diversify Your Investments In 2021

credit card

Here’s Why The Airtel Axis Credit Card Is The Perfect Credit Card For You!

Airtel Axis Credit Card has been gaining immense popularity lately, mainly due to its attractive features, such as welcome benefits, cashback offers, and so on.  With these features, it has undoubtedly become an irresistible choice for many people.  Let us understand its key elements in detail below: Read it and know what this is a best buy credit card. 1. Cashback Benefits Well, this has to be the best. Airtel Axis Credit cards provide several cashback benefits to its customers. They are as follows:  No.SpendsCashback1For regular utility bill payments, for instance, electricity, gas, and so on through Airtel Thanks10%2Airtel mobile with broadband facilities, DTH, wifi bill payments via Airtel Thanks25%3Preferred merchants10%4Other spends and merchants1% Note: Cashback will not be applicable on fuel spends, EMI transactions, wallet loading transitions, purchases converted to EMI, jewelry purchases, rental payments, and so on.  2. Welcome Benefits It includes an Amazon voucher worth Rs. 500. Claim the welcome benefit by following the instructions mentioned below: Head straight to www. the code of the gift cardPress ‘Add to Your Balance’  With these steps, one can quite easily add the gift card amount to their account.  In addition to this, you need to keep the following terms and conditions in mind as well: Every customer needs to make the first transaction within 30 daysIf a user ends up canceling, refunding, or choosing a cash transaction, they will not be eligible to receive the welcome benefits of Airtel Thanks Axis Credit cardsThe welcome voucher will be applicable for cards that have been charged with a joining fee of Rs. 500 and taxes on their Airtel Axis Bank Credit cardThe voucher will be sent to the registered mobile number or email ID within the first 30 days of meeting the requirements.  Related: 5 Smart Ways to Boost your Credit Score 3. Complimentary Lounge Access The Airtel Axis Bank Lounge Access Program is based on the following entry types (rules of the program): Entry Type 1: The eligible cardholder does not have to pay any fee (exceptional than just a nominal swipe with the fee of Rs. 2 for the Visa facility and Rs. 25 for Mastercard options). Entry Type 2: The eligible cardholders need to pay a particular amount that will be displayed at the Participating Airport Lounge.  The eligible cards have to be authenticated at the entry point by simply swiping a transaction for a small fee.The lounge access program will be applicable only till 31st August 2025. 4. Fuel Surcharge Waiver Another great thing about having an Airtel Axis Credit Card is the fuel surcharge waiver. So, come, let’s find out more about them in detail below:  1% fuel surcharge waiver on the purchase of fuel at every fuel station across our countryIt is valid on transactions between Rs. 400 and Rs. 4,000. However, the maximum benefit will be offered up to Rs. 500 per statementThe users will not receive a refund on GST charges on fuel surcharges.  These key features make an Airtel Axis Credit card an exciting option for everyone. So, what are you waiting for? Get the card in these few steps mentioned below:  Step one: Open the Airtel Thanks app and head straight to the ‘Shop’ section.  Step two: Click on the ‘Airtel Axis Bank’ option. In doing so, you will be able to view a screen showing the benefits of your smartphone  Step three: Scroll down below to tick the checkbox of ‘Terms and Conditions’  Step four: Once done, select ‘Check eligibility’  Step five: Then, follow the instructions as shown on the screen and submit your PAN Card details in the app  Step six: Fill out your basic information  Step seven: Enter the data about your employment  Step eight: Enter your residential details  Step nine: Complete the verification process,  To sum up, an Airtel Axis Credit card is a great option for everybody. So, get one today and make the most of its attractive features. Also, install the Airtel Thanks App through the Android Play store or iOs app store, as it is one of the best recharge and bill payment apps that enable simplified online payments within minutes. Conclusion: When you are planning to have a credit card, there are certain types of things that you must analyze first? What are the credit limit and the security aspects of the cards? Usually, credit cards are always giving a better financial advantage. That means you will get the privilege of paying after actually buying the products. But my suggestion is when you get any credit cards, always go for the security options. As secure credit cards give you better safety and security even when you are facing card thefts. And Airtel axis credit cards are among the best, most secure cards. Additionals Ultimate Guide On Green Card RenewalHow to Dispute an Error on Your Credit ReportHow To Replace Your Social Security Card OnlineUsing Short-Term Loans to Help Rebuild Your Credit Score