Like a crazy roller coaster, the online payments industry is a constant ride of ups and downs. This year alone, merchants, payment service providers, and acquiring banks have all experienced many changes. Starting in 2011 and continuing into 2012, Visa audited a number of acquiring banks worldwide. Some of these banks lost their ability to process credit cards for certain high risk industries, while some banks lost entire merchant portfolios.
The following is a recap of what the audits entailed as well as how Instabill has kept up with the rules and regulations to ensure its merchants continue to process with uninterrupted services.
Part of this audit includes making sure merchants stay within the recommended number of chargebacks and ensuring that each business is fully compliant with Visa's credit card processing guidelines. Among other things, acquiring banks and payment service providers are required to make sure merchants are only selling approved goods and services as well as making sure each business has obtained the appropriate licenses.
The credit card company also checks to see if payment service providers and acquiring banks are visiting the merchants' locations as well as their fulfillment company locations. As a result, acquiring banks and payment service providers have been implementing new risk compliance departments as well as hiring and training new employees.
Instabill Keeps Compliant with Visa Regulations
As a payment service provider, we have increased our in-house risk management and ongoing due diligence. As well as working with our banking partners, we established our own risk compliance department to support our account managers in investigating that our merchants operate legal and legitimate businesses. While our risk compliance department reviews merchants' underwriting documents and investigates online reputations, Instabill has significantly increased visits to merchant locations.
Expanding Our Solutions to Help Your Business Grow
In 2012, Instabill implemented many changes and has seen a lot of growth. In the past nine months, we have welcomed more than six new acquiring banks to our Partner Program—three of which provide domestic, U.S.-based merchant accounts. This allows us to offer credit card processing solutions to merchants in a wide range of industries, but being able to offer multiple merchant accounts through one payment gateway is another huge benefit.
"We always encourage merchants to have one or two additional merchant accounts," said Instabill CEO Jason Field. "If an acquiring bank terminates a business's merchant account for no apparent reason, it can still continue to process credit cards without interruptions."
When to Open Multiple Merchant Accounts
There are many benefits of opening multiple merchant accounts, including having more credit card processing options and processing for multiple websites. However, opening multiple merchant accounts can help you avoid lost profits if an acquiring bank terminates your merchant account. We recommend that you open multiple merchant accounts if:
- You process more than $100,000 a month
- Your number of monthly chargebacks and your chargeback ratio border Visa and/or
- You operate a business in a high risk industry, such as adult services, online dating,
e-cigarettes, travel agencies, or gaming
- You operate your business from a high risk country or in an offshore jurisdiction
Credit Card Processing with Instabill
For more information on how you can process credit cards with a fully compliant payment service provider, contact us online or call us toll-free at 1-800-318-2713.