Many providers offer low risk payment gateway service with inexpensive fees. However, this type of virtual POS can be approved only once the level of risk your business activity involves is measured.The factors that financial institutions take into consideration before making a decision are:
- Nature of business;
- Average sale ticket;
- Number of monthly transactions;
- Number of chargebacks;
- Country of company incorporation.
Following this criteria, the financial entity considers your business activity as of low risk if:
- You sell a tangible product or service whose quality can be easily verified;
- Your average sale ticket is less than 100 USD or its equivalent in other currency;
- The amount of chargebacks that you receive is close to zero;
- You have a stable number on monthly transactions along the year.
- Your company is registered in a low risk country.
Another very important aspect that lowers the risk of your commercial activity is a protocol that you use when accepting debit or credit cards in your online store. There are currently two types of protocols that a client can choose: 3D Secure and Without 3D Secure or so called Traditional protocols. It is very important to opt for 3D Secure protocol in order to assure that your low risk payment gateway application is approved. Why? Unlike Traditional protocol, 3D Secure involves the verification of cardholder´s identity forcing him to introduce a secure code that either was sent to his cellphone or given to him when the bank account was opened.
3D Secure protocol is a perfect way to protect your online business from frauds and offer higher security level to your clients. Because the cardholder has to introduce the unique code, the risk of him claiming that his card was stolen and it was not him who made the purchase and therefore he is requesting a return of funds is very small. In this case the bank issuer of a card has to assume all the responsibility for the transaction. However, in case if a cardholder made a purchase trough 3D Secure protocol and received a defect product it is in his rights to claim a financial compensation and receive a refund of total amount paid in merchant´s online store. Therefore, as you can see, 3D Secure protocol is a perfect way to protect your business from card frauds and make your clients feel more secure when purchasing in your online store.
One more factor that should be taken into consideration is a process that the client has to go through in order to make a purchase. It is very important to leave a link to Terms and Conditions where a client can easily find it. In case of a regular order placement, such as payment button that adds a product to shopping card, the client has to introduce certain information about him and verify his identity. But what happens when you want to charge your clients by phone, to use so called MOTO payment method? Unfortunately, MOTO cannot be used if you want your business to be considered as low risk and charged low commissions. When a client makes a payment via phone providing only his credit or debit card and CVC numbers there is no way to verify if he is a legit cardholder of this card. Therefore, anyone who has an access to this card can use it for fraudulent purposes. Therefore, those online stores that opt for selling their products or services via phone will be charged higher fees due to the greater fraud risk
Always keep in mind that financial entities never accept businesses related to money laundering activities and, when detected, block the terminal and include the company to their blacklist so that it cannot apply for a new payment gateway later on.
Low risk offshore payment gateway: Advantages
- Low processing fees;
- Possibility to accept all brands of debit and credit cards (Visa, MasterCard, Amex, Diners Club, Cirrus, Discover);
- Considerable tax saving;
- No need to present a credit history;
- Low risk payment gateway for recently registered companies;
- Unlimited number of processed transactions;
- Physical presence of online store´s owner is not required;
- No restrictions on whether the company is offshore or onshore;
- 99.99% of approvals within 48-72 hours;
- Customer support in English, Spanish and Russian.
Low risk payment gateway: Commissions
The fees depend on the nature of business, percent of chargebacks and type of service or product that the merchant will be selling.
* To confirm the exact rates, please contact us via phone, e-mail, Skype or WhatsApp.
* Contract low risk payment gateway for e-commerce without physical presence. All arrangements are made through e-mail and / or certified mail.