December 1st, 2015 by Elma Jane
Merchant account Aggregators has one merchant account that they let people use. You get quick setup, and get shut down quickly. A post approval risk management technique!
What’s the problem with Aggregators? If anything unusual happens their only recourse is to freeze your account entirely or hold your money. Most Aggregators are hard to get hold of because they don’t have human customer support.
Visa and MasterCard monitor Aggregators very closely. Once an individual or business sells more than $100,000, they force the Aggregator to issue individual, traditional Merchant Accounts for the business.
Aggregator is not intended as a long term, scalable solution to accepting payments.
While Aggregators have a One to Many structure, Traditional Merchant Accounts like National Transaction have a One to One structure. Traditional Merchant Accounts are not balancing the risk of your account against others, they want details on your specific situation before they give you a Merchant Account.
Traditional Merchant Account look at three things:
Your personal history “credit”, your business history if you have one and your business model. If you are working with the Right Merchant Account provider, they will know your business and understand the risk before you accept cards. They have other options to mitigate the risk than simply freezing funds or closing your account.
Why you may want to consider National Transaction over Aggregators, of the thousands of Merchant Account providers out there, only about 1% of them consider themselves High Risk Providers like National Transaction, which despite the abrasive term, are the ones who do effective underwriting.
Give us a call now at 888-996-2273 https://www.nationaltransaction.com/
Posted in Best Practices for Merchants Tagged with: aggregators, High Risk Providers, MasterCard, merchant account, payments, visa