Merchants who accept payments directly from customer bank accounts need to take precautions to mitigate the risk of insufficient funds, chargebacks, and accounts that come back unable to locate. A robust verification process can help a business avoid accepting fraudulent payments and underfunded accounts. There are different types of verification, however, with varying levels of security and certainty.
Payment processors like eDebitDirect can offer high-risk vendors other options.
As governors across the country continue to extend shelter-in-place orders, certain industries deemed high-risk are seeing a surge in business. From CBD to Cannabis to Kratom, Americans are turning to these natural stress relievers to make it through the pandemic.
But, this surge in popularity doesn’t mean that financial institutions are more open to taking such business. Long considered high-risk merchants, these vendors have struggled with banking and credit card relationships, having a hard time securing loans or losing large sums of money, at the whim of their bank or credit card company.
Take, for example, Elavon. USBank’s processor of credit card transactions, Elavon had a corner on the CBD market, with close to ninety percent of the merchant accounts. Last year, the company informed its merchants that they were cutting ties with businesses that sold CBD, leaving owners scrambling to establish new financial relationships. The insecurity of such relationships is enough to drive a business owner crazy.
When high-risk merchants are able to secure accounts with mainstream financial institutions, they often pay for it. With high rates and fees, banks and credit card companies take a larger portion of the profits to “justify” accepting this type of business. As a result, offering alternative payment options to customers can make the difference between staying in business and having to close up shop.
Payment processors like eDebitDirect are here to help high-risk merchants sell what their clients want without risking their payment processing relationship. We welcome high-risk merchants and work them to ensure the best rates with low fees. Most importantly, we are here for all of our clients, no matter their risk level.
According to the Harvard Business Journal, “Nearly 44 million U.S. workers are currently running a side hustle”. This number is sure to grow, as coronavirus sweeps across our country. With lost jobs and shrinking incomes, the economic impact of this crisis is already being felt. In fact, financial intelligence company Moody’s Analytics estimates that “job cuts…could add 5 million to 6 million people to the unemployment line in March” alone. Workers who’ve recently been laid off are looking for a side hustle that can generate income for the time being.
At eDebitDirect, we want to help our community survive this unprecedented turmoil. As a result, we have decided to offer a new opportunity by hiring more reseller partners. If you are looking to make extra income or need to find a new opportunity, reselling could be the right fit. We are looking for experienced sales representatives who can jump right in and can bring in new business.
eDebitDirect Reseller Partner Program
We rely on resellers, valued members of our network, to help market our services to merchants and bring in new business. Our resellers offer merchants an alternative to credit cards, a payment option that often comes with high rates, unnecessary fees, and the risk of chargebacks. Right now, merchants are looking for creative ways to cut costs, and we work hard to minimize rates for our clients.
In comparison to most reseller programs, eDebitDirect goes above-and-beyond, to offer the following benefits:
- Timely monthly payouts
- Incentives for all partners, not just the high-performers
- Competitive commission splits
- A free online training course
If you are interested in learning more about becoming a reseller, contact Tony Carrasco at 888-616-2535 x 107 or email@example.com. We would love to welcome you on board.
CBD and cannabis companies continue to struggle to find reliable payment processing options. Whether credits cards unexpectedly close their accounts, offshore vendors keep their payments, or banks deny them in the first place, CBD and cannabis vendors are at constant risk of losing their payment processing partners.
Deemed high-risk by key influencers in the banking industry, these merchants lack the security and transparency they need to thrive in an increasingly competitive landscape. In addition to continually searching for sustainable payment options, CBD and cannabis sellers are often charged unnecessary fees and high rates.
Historically, traditional payment processors shy away from entering into business relationships with high-risk companies like those that sell CBD or cannabis. Pressured by the likes of VISA, MasterCard, and American Express, smaller financial companies are threatened by the possibility of chargebacks and regulatory fines. As a result, many choose to pass on these partnerships.
Sudden Closures & Withholding of Funds
Currently, reliability is a primary industry concern. Tempted by the growing trade, financial institutions are jumping on the bandwagon, only to reverse course and suddenly close client accounts. Account closures are not only disruptive; they can put a black mark on a business’ record and lead to difficulty in securing future partnerships.
Chargebacks are also a problem for small businesses. Since credit card companies allow customers to reverse transactions for up to six months, most processing companies hold funds for that period of time. Without funds in the bank, many small businesses can fall victim to insufficient cash flow, and ultimately, be forced to close.
Offshore banking might seem like smooth-sailing, but it’s far from easy. Once a company engages in off-shore processing, most U.S. payment companies won’t touch them – at least for a while. Frowning on these relationships, American companies shy away from doing business vendors that have this history. Besides, offshore banking is less secure, often leading to lost or delayed funds. With this unstable type of payment relationship, cash flow can suffer and be a detriment to a merchant’s success.
Alternative payment processors like eDebitDirect can stand alone as a payment solution or help bridge the gap of less reliable options. Diversifying payment methods to include alternative sources will help CBD and cannabis sellers avoid the risks of rejections and closure, paving the way for a stable road to success.
Account Verification and Daily Balance Check
Verifying if a customer account exists and is currently active is a good place to start. This type of service can also check if the customer has a positive balance at the start of the business day. But, this type of verification falls short of reassuring business owners that funds will be available when a payment hits their account.
Enlisting a verification service that alerts a seller to a client’s previous NSFs or bounced checks is smart business. While a history of bounced checks does not necessarily mean that the customer is not good for the money at that moment, it can help retailers determine the account holder’s character. Again, this type of verification doesn’t provide enough information about the current state of a customer’s account.
Verification of Funds
Of course, most companies want to do their due diligence when accepting client purchases. Their best bet is to employ a verification process that looks inside consumer accounts in real-time to ensure enough funding exists. This process allows businesses to see what is in a customer account at the time of purchase.
eDebitDirect verification service covers all of these areas. We check a client’s account and immediately provide accurate information about the account status. And, we take it one step further, by looking into an account and verifying that there is enough money to cover the transaction. With this information in hand, a merchant can immediately control their cash flow, and as a result, the health of their company.
We get it. Payment apps and digital wallets are convenient. They have exploded in popularity over the past few years, allowing people to easily pay friends and family for everything from utility bills to concert tickets. Recently, these
peer-to-peer financial apps have made their way into the business world. Cleaning services, psychologists, and contractors are among the small businesses allowing clients to pay this way. But is it a good idea for you and
The short answer is yes. But, you should consider three things before jumping in headfirst.
How the company communicates with businesses and consumers is essential. Make sure that the payment processor you choose has personalized, one-on-one customer service. Communicating through live chats or chatbots can lead to a frustrating and time-consuming journey if you need to get to the bottom of a reversed or an on-hold transaction. Speaking with a real employee can make all the difference.
Popular with digitally-native Millennials, some peer-to-peer payment apps are social, allowing users to share their purchases with followers. While many have private modes, activity is usually public by default. Opting-in to private mode is often up to the user. But, sharing payment information for all to see can have unintended consequences. User activity can be accessed and “scraped” from these payment apps by hackers or companies looking to use it for nefarious reasons.
Lack of control is another downside of sharing payment information. If your customer unintentionally uses a word or phrase that looks even remotely suspicious in their purchase description, like the name of a country, these companies can withhold payment until they ensure its legitimate. As a result, this process can take days, even weeks, to resolve.
Initially, most popular payment apps were not designed for business, so the reporting mechanisms needed to analyze purchasing and financial data are not up to par. For companies looking to make sense of customer purchasing habits or monthly profit, for example, the reporting structure of these apps is not robust enough and can be hard to navigate.
Ultimately, choosing the payment processor that’s right for your business is personal. After all, there is no one solution for everyone. Balancing ease and convenience with needs and security makes good business sense.
Visa, Mastercard, and American Express are ubiquitous around the world. As a result, most merchants feel as though they have to accept these forms of payment to survive. But, business owners don’t have to be held hostage by these credit giants, their high costs, and their arbitrary limitations. Other options exist.
Here are three reasons an alternative to credit cards makes smart business sense:
Customers don’t always want to make purchases with credit cards or cash. For these types of transactions, payment processors fit nicely into the mix. Also, providing this option to clients can make paying a business easier. A service provider, for example, can send a monthly invoice and receive payment the same day. Other payment services can take up to three to five days to appear in an account.
By handling all transactions in-house, payment processing companies like eDebitDirect can work to lower the cost of doing business. Without a go-between to add fees to the process, these companies can charge less, so companies can keep more of their profits.
Nothing ruins a merchant’s day more than disputed credit card charges. Just because a sale went through, doesn’t mean it is guaranteed money in the bank. Credit card companies can reverse charges, leaving merchants holding the bag. Verifying bank funds with a payment processor is not only fast, but it also guarantees a customer has enough money to cover their purchase. And, once the customer pays, it can’t be reversed. Business owners can set themselves free from the singularity of credit card companies. Payment processing is fast, easy, and well worth it.