Merchant Account Reserve: What It Is and How Rolling Reserves Affect Cash Flow

Last year, the global e-commerce market brought in $33.91 trillion in revenue. While e-commerce sales are projected to grow significantly, there are potential risks involved for merchants. Because of fast fulfillment timelines, friendly fraud, forgotten subscriptions, and customer confusion, digital goods chargebacks occur at a more frequent rate than chargebacks from physical goods. By understanding […]

Each industry has a different risk level driven by fraud, chargeback rates, and other factors. For instance, low-risk industries typically have chargeback rates as low as 0.1% to 0.3%. Meanwhile, high-risk industries can easily have chargeback rates of 0.7% to 1.5%. Higher chargeback rates lead to more risks for the payment processor. In turn, these […]

Merchant category code (MCC) 6050 is designed for quasi-cash and member financial institutions. As such, it is often used for foreign currency transfers and remittances. When merchants are classified under the 6050 MCC code, it increases their regulatory scrutiny. Because of the higher rates of fraud and chargebacks, processors often charge MCC 6050 merchants more.  […]

As a business, there are times when you need to send real-time payouts to your customers, employees, vendors, and business partners. The right payout rail can make a difference. Traditional rails, like ACH and wire transfers, lack the speed and user experience that global companies require. By using Mastercard Send and Visa Direct for push […]

As a merchant, your chargeback rate can impact your processing fees, terms, and account availability. Your ideal rate can vary based on your industry benchmark. Some industries, like travel and SaaS, have higher chargeback rates than others.  By understanding major drivers and variations in chargeback rates by industry, you can take the next step toward […]

Because of its connection to the financial industry, merchant category code (MCC) 6211 involves extra regulatory burdens and compliance rules. On top of these challenges, businesses that are classified under MCC 6211 also face more underwriting requirements and transaction limits.  As a result, it’s important for merchants to work with a payment processor that understands […]