Dynamic Payment Solutions specializes in the needs of the small to mid size merchant – especially eCommerce merchants. Many banks and Merchant Service Providers are not willing to work with Internet based merchants because of the inherent risk in acquiring card not present (CNP) - or non face-to-face card transactions. The Associations – Visa and MasterCard – and their card issuing banks have recognized the potential losses due to fraudulent transaction activity, excessive charge-back potential, and the high risk of bankruptcy for small web-based merchants.

DPS has developed the in-house monitoring and risk assessment tools that allow us to provide low cost merchant accounts that are so critical to success for eCommerce companies.

THE PROCESS

Once merchants have remitted the required information by completing the online application, accounts can typically be approved in two to five days for U.S. based merchants. Approvals are based on a number of financial factors such as history of credit worthiness of the principals, prior bankruptcies, types of services sold, the manner in which sales will be made, past merchant account track record, etc.

Most eCommerce merchants will also need a payment gateway – such as Authorize.Net – to connect their web site/ shopping cart program to the processing network. In layman’s terms – the payment gateway is to the eCommerce merchant what the POS (point of sale) credit card terminal is to the retail (or) brick and mortar merchant. The payment gateway can also be used as a “virtual terminal” for those merchants who take phone and mail orders by directly keying the orders into an online interface.

THE COSTS

The basic costs for ISO’s to provide merchant accounts is known as the Interchange Rates, which are actually set by the Associations and their member Issuing Banks. The rate is comprised of a “discount” rate expressed as a percentage of the sale plus a transaction fee – the bulk of which goes back to the cardholder’s issuing bank to cover the cost of maintaining the accounts and to mitigate the risks.

For example, a retail merchant may pay 1.9 percent of each Visa/MasterCard sale plus a 25-cent per transaction fee for the privilege of accepting the card. In addition there are separate statement fees, charge-back fees, minimum fees, start-up fees, etc that may apply. Web based merchants pay considerably higher rates – around 2.5% - for the reasons mentioned above.

Our bankcard experts can determine the appropriate program and POS – point of sale equipment or internet solutions that best fit your needs.