MO/TO Merchant Accounts: Important Information
MO/TO merchant accounts have become a solution to businesses that conduct the majority of their sales through the mail or over the phone, as the virtual terminal allows credit card information to be processed without the need to swipe the card in person. However, there are risks involved in conducting sales without the presenter of the card being present, one of the largest being the potential for charge backs that can cost a business in both money and reputation. The advantages often outweigh the risks, however, and a reputable merchant account provider like MO/TO merchant account provider Canada Card Processing can assist businesses in getting a merchant account. For more details, click here.
MO/TO merchant accounts are those mail order and telephone orders that happen in many businesses today. These accounts allow businesses to manually enter credit card information into a web-based virtual terminal that can be accessed from any Internet connection. While This adds convenience and increases the potential customer base, there are a variety of risks involved when the customer is not present, which include the inability to visually verify the identity of the cardholder.
Why Are Charge backs Considered High Risk?
Charge backs are perhaps the largest concern with MO/TO Merchant Accounts, as the potential for cardholders to demand a reversal of charges from their credit card company can be high in certain industries. The reasons for the charge back requests can include anything from fraudulent charges to buyers remorse, but the cost to the business is more than the refund of the sale price. Businesses may also be fined by the bank that issued the credit card, and may lose future sales as a result of loss in reputation that comes from dissatisfied customers. Additional data about merchant account can be reviewed on the site of amazon.
High Risk Merchant Accounts For High Risk Businesses
On the positive side, High Risk Merchant Accounts were created especially for businesses that may face a very high rate of charge back requests, and includes businesses such as:
· Subscription and membership services
· Insurance products and sales
High Risk Merchant Accounts offer automatic payment processing and fraud prevention services. But unlike the lower risk MO/TO Merchant Accounts, there is a higher fee to pay for this risk. Because charge backs can be costly, higher monthly and transaction fees are usually applied, and a security deposit may be needed to cover the cost of any charge back that happens. High Risk accounts may also limit the volume of transactions that can be processed, which can potentially lower the number of customers able to patronize a particular business.
Businesses can increase sales using MO/TO Merchant Accounts to accept payments through the mail or over the phone. Credit card payments are automatically processed by way of a web-based virtual terminal, which can be accessed from any computer with an Internet connection. Even though the inability to visually verify the identity of the cardholder is an issue with one of these accounts, it the potential of charge backs that makes many MO/TO accounts high risk. Selecting a reputable merchant account provider can certainly help reduce the risks of fraud and charge backs, however, and trained personnel can help with getting the account up and running smoothly with very little hassle. MO/TO Merchant Accounts makes it easy to provide service to customers around the globe, making them one of the greatest investments a company can make.
