Communication is the Key to Payment Processing Success

International merchant accounts have high processing capabilities. High volume merchants take advantage of exceptionally attractive rates with Tier 1 international banks. Acquiring banks prefer high volume accounts and the higher the processing volume, the lower the rates.

The first 3-6 months of processing are the most important for both high risk merchants and the acquiring bank. Merchants and the acquiring banks are building business relationships and each is confirming that agreements will be honoured. The merchant wants to be sure that payment processing and settlement times are satisfactory. The acquiring banks are confirming that the business knows how to correctly manage a high risk merchant account, including keeping chargebacks low.

Communication is the key for ensuring long-term mutually-profitable payment processing accounts. Merchants are encouraged to keep the acquiring banks updated on any changes to business that will affect the high risk merchant account processing.. Acquiring banks are happy to make changes to an account based on the business requirements of the merchants.

It is prudent business practice to notify the acquiring bank if the merchant expects substantially increased processing volume or “spikes” in transaction processing. Common reasons for requesting for higher payment processing limits are new advertising campaigns; additional products or services; improved website functions; targeted marketing programs; and hiring new sales people.

Whatever the reason for a change in payment processing volumes, a brief communication with the acquiring bank avoids “surprises” and demonstrates good high risk merchant account management. Increased volumes are easily accommodated if a merchant has a good processing history.

Another time to notify the acquiring bank is if a merchant is modifying pricing so that average tickets will be substantially different. Merchants should communicate to the bank if they decide to add a wholesale division to retail operations because wholesale orders will likely be higher tickets than retail sales.

Merchants are wise to advise the acquiring bank if there are any material changes in business practices. For example, if shipping and delivery time-frames change significantly; return policies are modified; or if billing procedures are changed, a quick update to the acquiring bank is appreciated.

An international merchant account is an invaluable asset to business operations. Good communication between high risk merchants and acquiring banks is vital and guarantees long-term success.

The minimum monthly processing volume to apply for an off-shore account is $50,000. Many merchants process millions of dollars per month. Applications are accepted only from merchants with verifiable business history.