Why Acquirers Use Reserves Instead of Simply Declining High-Risk Merchants
An acquiring bank uses a reserve because it gives the bank a third answer between “yes” and “no”: approve the business, but keep some money nearby in case losses arrive later. When a bank looks at a merchant it has to guess how much could come...
How ACH Payment Processing Costs Work for a B2B Ecommerce Business: What Fees to Ask About
ACH processing costs are built from several small lines, not one rate, and the line that looks cheapest on a quote is not always the one that decides what you pay. For a business that sells to other businesses online, the real cost of taking a bank payment includes...
Merchant Accounts for Every Business Type: What Changes by How You Sell
A merchant account is the account that lets a business accept card payments, and every business type uses the same basic one, but how you sell changes almost everything around it. A store with a counter, a restaurant with tabs and tips, an online shop, a company that...
How Residual Splits Are Calculated for Referral Partners and ISOs, and Why the Number You Were Quoted May Not Be the Number You Are Paid
A residual split is calculated by taking a share of a base amount, and the base is the part that most often differs from what you were told. Two programs can advertise the same headline share and pay very different amounts, depending on whether the share applies to...
PayFac Sub-Merchant Monitoring: Where the Liability Sits and What Controls a Payment Facilitator Needs
When a sub-merchant under a payment facilitator (PayFac) causes a loss, the bill does not stay with the sub-merchant. Under Visa and Mastercard rules, the acquiring bank answers for what its payment facilitators and their sponsored merchants do, the payment...
CEO - Nationwide Payment Systems
