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Kimmykim · 01-26-2005, 08:25 PM

Quite frankly without at least 3 months of chargeback and volume statements you are going to have a hard time getting your own merchant account. The costs you'll incur aren't ROI feasible if you're going with a legitimate underwriter.

My suggestion to you is to get an IPSP account to start with, then once you've established some history with them, apply for a merchant account. US accounts are still available but the field is narrowing rapidly, since banks are only allowed to process 20% maximum of their total processing in high risk. There is also a 1%/100 chargeback monthly allowance without incurring fines and potentially termination.

Visa US, Visa EU, Visa Latin America also strictly enforce cross border acquisition rules -- meaning that you need to have a corporation set up in the region you want to authorize and settle from in order to transact your business. Thus if you have a British company you can't use a US bank, or vice versa.

Mastercard has its own set of rules as well, and reserves the right to count your credits against you as if they were chargebacks if they decide that you are issuing credits purely to avoid chargebacks.

Most processing accounts these days require a minimum monthly volume, and you'll also need fraud scrubbing, gateway services, call center or other customer service as well, in order to manage your account.

Visa also has specific security requirements for anyone who processes or handles consumer credit card data, and you must also meet those requirements in order to get an account. Due diligence is tighter than ever as well; you'll need to provide bank statements, corporate documentation and IDs for the company principals. Most banks and ISOs also require credit checks on the principals as well as financial statements for the company.

Mastercard is also implementing a new rule where the bank is going to have to assume additional responsibility for each account they underwrite as well.

I'm not trying to discourage you, just give you the rundown on how it works. Start with an IPSP account to build some history, then transition over to your own merchant account when you've got more volume and history behind you.

01-26-2005, 08:25 PM
Kimmykim bitchslapping zebras!!!!! Industry Role: Join Date: Jun 2001 Location: In a shack by the beach Posts: 16,015	Quite frankly without at least 3 months of chargeback and volume statements you are going to have a hard time getting your own merchant account. The costs you'll incur aren't ROI feasible if you're going with a legitimate underwriter. My suggestion to you is to get an IPSP account to start with, then once you've established some history with them, apply for a merchant account. US accounts are still available but the field is narrowing rapidly, since banks are only allowed to process 20% maximum of their total processing in high risk. There is also a 1%/100 chargeback monthly allowance without incurring fines and potentially termination. Visa US, Visa EU, Visa Latin America also strictly enforce cross border acquisition rules -- meaning that you need to have a corporation set up in the region you want to authorize and settle from in order to transact your business. Thus if you have a British company you can't use a US bank, or vice versa. Mastercard has its own set of rules as well, and reserves the right to count your credits against you as if they were chargebacks if they decide that you are issuing credits purely to avoid chargebacks. Most processing accounts these days require a minimum monthly volume, and you'll also need fraud scrubbing, gateway services, call center or other customer service as well, in order to manage your account. Visa also has specific security requirements for anyone who processes or handles consumer credit card data, and you must also meet those requirements in order to get an account. Due diligence is tighter than ever as well; you'll need to provide bank statements, corporate documentation and IDs for the company principals. Most banks and ISOs also require credit checks on the principals as well as financial statements for the company. Mastercard is also implementing a new rule where the bank is going to have to assume additional responsibility for each account they underwrite as well. I'm not trying to discourage you, just give you the rundown on how it works. Start with an IPSP account to build some history, then transition over to your own merchant account when you've got more volume and history behind you.