MerchantWorthy.com FAQ

What makes MerchantWorthy.com different from my current credit card processor?

We are the only company who will provide you with an instant online merchant quote that you see immediately! And because all companies in our business have similar costs of doing business, we understand that the more efficiently we run our business, the more often we will be able to share any cost savings with our customers.

But, please do not take our word for it. We invite you to compare our high risk merchant accounts or rate proposal with competitors in the industry. We make it easy for you to compare our program with that of anyone else by providing the online comparison tools to do that job!

Our merchant account was recently terminated by our credit card processor. How critical are merchant chargebacks in determining high risk merchant status?

Critical. We find that most merchants whose accounts recently have been terminated due to a “high risk” status have a high number of merchant chargebacks or an increasing frequency of merchant chargebacks.

Does an Internet Merchant Account always fall into the high risk category?

Not at all. While it is true that internet merchants and e-commerce businesses are at greater risk of both fraudulent transactions and merchandise returns and consequently can have higher credit card processing rates than a swipe card merchant (bricks-and-mortar storefront), they do not fall into the high risk category just because they have an internet merchant account.

How important is the merchant account set-up in getting my company the best rates?

It is critical. In determining rate categories, Visa & MasterCard classify merchants into one of three categories: (1) Retail (swiped) Merchant; (2) Mail Order / Telephone Order (MOTO) and (3) Internet/E-Commerce. From the perspective of industry risk factors and the underwriting process, retail swipe merchants always have a less expensive interchange rate than MOTO or Internet merchants due to less instance of fraud with cards being swiped through a credit card terminal. We help you work through the complicated setup process so that you have the best chance of accepting credit cards at the lowest possible processing rates.

What are the primary cost components that impact my merchant rates?

The credit card processing industry has a complex pricing structure, with several parties charging fees on each transaction your business processes. On a very simplified level, the merchant pays two sets of fees: an interchange fee set by Visa, MasterCard, which consists of a percentage of the transaction, and a per-transaction fee set by the association (Visa, M/C) and added to by the card processor. These are the primary cost components of merchant processing rates.

What is chargeback insurance and how does it work?

Chargeback insurance essentially is transaction insurance coverage that insures that any chargebacks that fall within policy limits are paid by the credit card processor and not deducted from the merchant’s cash account. A small amount of each transaction goes to paying the chargeback insurance premiums.

Do I pay more to use an internet payment gateway vs. a swiped credit card terminal?

The costs of installation and use of either system are basically small compared to the processing costs over time. The most important factor in credit card processing is to capture the necessary cardholder information in a secure format. Swiped transactions through credit card terminals are the least risky transactions because theft of cards is minimized. Internet transactions pose greater risk of fraud and product return or buyer remorse (customer returns can generate merchant chargebacks) and thus have higher rates. However, implementing simple techniques such as gathering Address Verification information, invoice #, PO # will help reduce returns and thus chargeback fees and escalated interchange rate levels.

What is 12-hr Funding?

At MerchantWorthy.com if you settle your credit card terminal / payment gateway by 7PM Eastern Standard Time, your Visa, MasterCard and Discover funds will credit to your bank account the following morning. This is unlike most companies in the industry that typically settle within 2-4 days. American Express has their own payment schedule, which typically is 3-5 days.

With a Merchant Cash Advance, you can turn tomorrow’s credit card sales into cash today! It’s that easy. When you are a MerchantWorthy.com merchant, we can help you find the immediate business capital when you need it most.

What is a Merchant Cash Advance?

As a merchant, you can sell a specific amount of your future credit card sales and receive payment now. A merchant cash advance or business cash advance is not a loan, it is the sale of your credit card receivables at a discount. That discounted credit card receivable amount is the purchase price of the business cash advance. You can use your capital to grow, build, and strengthen your business. Once approved, the upfront capital (purchase amount) is deposited directly into your bank account. Payback of the advance is made through an automated deduction of an agreed upon percentage of your net settled credit card sales until the purchase price of the advance is satisfied.

How fast can I get the merchant cash funding?

In many cases our merchants can obtain a business cash advance within 72 hours from the time of initial contact and often get a merchant advance amount approval within 24 hours!

How are Business Cash Advances different than Bank Loans, SBA Loans or Working Capital Lines of Credit?

A merchant cash advance is a sale of your future credit card receivables at a discount. Following are some key differences between merchant cash advances and bank loans and lines of credit:

There is no “Interest Rate;” instead you agree to payback a predetermined amount of the advance purchase price.

Unlike a small business loan, there is no “Term”. Instead you agree to pay daily a percentage of your daily credit card batch settlement(s). The payback time varies with how much or how little credit card processing volume your business processes during the settlement period.

There is no collateral or other security.

Merchants with credit challenges can almost always get approval for a merchant cash advance.

There are no personal guarantees business cash advances are unsecured cash funding instruments.

There are no restrictions on the uses for your merchant cash funding.

No late payment fees you pay your merchant cash advance automatically when your customers pay you.

What is the Cash Advance Funding Process?

There are four basic steps in the merchant cash advance funding process. First, we determine if you qualify for any type of credit card factoring program. Second, you complete the application process with us and provide us at least three months of statements from your merchant card processing account, as well as other requested documents. Third, get your cash advance approval amount and sign the business cash advance agreement. Fourth, get funded (we’ll wire the funds into your merchant or other designated account)!

Are there any Restrictions on the Uses of Proceeds?

No. A cash advance is an ideal fast cash funding solution for small to medium size businesses who need cash to:

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