Understanding the Ins and Outs of Credit Card Processing Services like those Offered by Pay.cc


In today’s digital landscape, the realm of e-commerce plays a pivotal role in fueling our economy, injecting billions of dollars into the financial bloodstream on an annual basis. Yet, it’s a fierce battleground, where thousands of e-commerce enterprises butt heads for the favor of the same pool of customers. Given the relentless competition, the ability to bestow convenience upon consumers becomes a vital objective. Among the various objectives of this mission, one stands out prominently – the seamless handling of igaming payments.

It’s super important for these online stores to have good systems for handling credit card payments. This helps make sure that when you buy something online, everything goes smoothly. It also helps the stores make enough money to keep running. If you’re starting an online business and are unsure about how credit card processing works, continue reading.

The Basics of High Risk Payment Processing

High-risk payment processing is similar to the standard way of accepting credit card payments, but there are some key distinctions. The main difference is that it’s designed for businesses that either make a lot of sales or have customers who typically spend more money per purchase.

The reason some merchants opt for high-risk payment processing is because their businesses are more prone to issues like chargebacks or fraud. When these risks are higher, it can be challenging to find a payment processing service that’s willing to work with you.

Credit Card Processing in the Realm of E-Commerce

For those who may not know, e-commerce credit card  processing is the way online businesses handle payments made with credit cards. Here’s how it works: First, you need to partner with a payment processing company to obtain a merchant account. This special account enables you to accept igaming payments from various credit card networks like VISA, Mastercard and American Express. Once you set up your merchant account, be prepared to pay certain fees. These can include setup fees, chargeback fees, application fees, and termination fees.

The primary advantage of having a merchant account is that it provides a secure financial channel for customers to make payments. Here’s how the process generally works – When a customer enters their credit card information during an online purchase, a payment gateway comes into play. This gateway assesses the card’s validity, identifies the associated bank, encrypts the customer’s details to keep them safe, and verifies if there are enough funds to authorize the transaction.

Once all the necessary checks are successful, the payment gateway will give the green light for the transaction, and the money will move from your customer’s credit card to your merchant account. Managing igaming payments can be quite intricate, and that’s why services like Pay.cc are becoming increasingly popular among businesses. These services simplify the entire process by consolidating it into a single platform, benefiting both customers and business owners.

Here’s how a third-party payment processing service provider can make things smoother:

No Need for Multiple Merchant Accounts

You won’t have to maintain separate merchant accounts for different card networks. Instead, you can use just one merchant account to handle transactions from various card types.

Built-In Payment Gateway

These services come with their own payment gateway, so you don’t have to set up one separately.

Virtual Terminal and Point of Sale System

They provide you with a virtual terminal and a PoS system. This means you can easily keep track of financial records and inventory, which is essential for tax purposes and managing your business efficiently.

The Right Way to Calculate Credit Card Processing Fee

Understanding how credit card processing fees are calculated is crucial when using a third-party service like Pay.cc. These solutions simplify payment acceptance, but it’s essential to grasp the cost involved. The key metric to focus on is the total fees, often referred to as the effective rate. This comprehensive rate encompasses various charges, including the markup paid to the high risk payment processing service like Pay.cc. Here’s what you should consider:

Interchange Fee

This is a fee paid to the bank that issued the credit card. It’s a standard cost that is typically non-negotiable.

Assessment Fees

These fees are charged by the card networks for using their payment system. Like interchange fees, they are usually fixed and not open to negotiation.

Cancellation Fees

In case you decide to terminate your agreement with the payment processing service, there may be cancellation fees. Be sure to understand these upfront.

Potential Rate Increases

Some processing services may have clauses that allow them to increase their fees in the future. It’s essential to be aware of such provisions in your contract.

As a business, you might have some flexibility when it comes to negotiating certain fees. While interchange and assessment fees are typically non-negotiable, you can inquire about fees for specific situations, like voided transactions or customer refunds.