International Payment Gateway will help you establish the right payment solution for your business. Players will now have more options when it comes to selecting a payment method, which is wonderful news.
However, despite the fact that online becoming more and more popular, the law still has some dark areas. To far, no significant action has been made by the government to control or legalize internet gambling. This implies that when people gamble online, they are technically breaching the law.
However, there are no recorded instances of gamers being charged with breaking these regulations because of the apathetic enforcement of them.
After clearing things up, let’s examine some of the best payment methods available to players.
What is and where does the high risk merchant account charge come from?
If you allow consumers to pay with credit cards (important for 99% of businesses), you must pay the normal commission of either Visa or MasterCard for each transaction with the card, depending on which card is used. A predetermined amount or a percentage of the sale is used to calculate the commission.
Someone in this situation must process these payments, right? A merchant services provider will charge its own commission for this processing, which when combined with Visa or MasterCard’s commission will equal the commission of the credit card vendor.
It is advantageous for your business to pay the bare minimum charge for payment processing. You must be familiar with the various pricing methods that are used to calculate these commissions in order to know exactly what the minimal commission will be. The most widely used models include
- Fixed-rate, interbank pricing, and several levels.
- It’s interesting how the same model may work out well for one business but be disastrous for another.
A set price
You pay the same commission for each trade, as the name suggests. For each credit card transaction, as an illustration, a trade service provider might charge your business 2.5%. Also keep in mind that each company may add a 20 to 40 cent fee to that commission for each credit card transaction.
This pricing methodology eliminates the need for intricate computations. Companies with a few modest transactions each month will benefit greatly from this form of commission calculation. However, this method of calculating the commission becomes less advantageous as the organization completes more transactions for higher sums.
One of the most common commission calculations is one that many businesses provide to their customers. Each transaction in this instance falls into one of three categories, depending on the type of payment:
Companies pay the lowest commissions at qualified rates since these transactions are the safest. What could be safer than when the customer is holding the card? If we are not referring to bonus cards, whose service is costly for all parties involved in the transaction, this model is applied.
For example, when paying via a website where the card number is entered, the average rate is used. A commission that is higher than the qualifying rate but lower than the unqualified rate will be due by the business in this situation.
The non-qualified rate applies to any transactions involving high risk. These are transactions in which the cardholder does not take part directly or in which the customer is expected to pay a specific cost.
A multi-level pricing system would be a great fit for you if your business services a large number of customers and you need to roughly calculate the level of your spending.
Model for interbank pricing
In this instance, the business pays for the transactions that the provider of trading services actually processes. This system has the benefit of being transparent. However, you shouldn’t assume that figuring out the ultimate commission will be simple.
The kind of payment card the client uses will determine the ultimate commission. It will be very challenging to predict monthly spending as a result of all of this, which could result in rather complex computations.
What is the ideal pricing strategy for getting the best Merchant Account?
A fixed payment plan will be ideal if your business is just getting started and there are few credit card transactions. However, if your business processes more than $5,000 per month, the fixed model will not be profitable to you. Choose multi-level pricing if you value stability in monthly reports and an understanding of your spending above all else.
Contact us, and we’ll give you the best option, ensuring incredibly secure payments and a variety of other helpful services, if you don’t want to waste a lot of time on complicated calculations and would rather immediately receive the best terms from a reputable payment service provider.
PayCly is the better option when it is comes to International Payment Gateway . There are many merchant account service providers that may provide you with payment services but out of them we ensure our services are reliable to your business and provide you the specific business needs.