What Is a Credit Card Merchant Account?

International credit card payment generally refers to online payment by international credit card, and is generally used for small collections of less than $ 1,000 in foreign trade. More suitable for online retail: the main industries are shoes and apparel, accessories, daily necessities, electronics, health products, virtual games and ticket booking.

Credit card payment

Chinese name: Credit card payment
For people: People with cross-international payment needs

Applicable quota: Under $ 1,000
Payment Types: Credit payment

At present, international credit card collection is a third-party credit card payment company that provides a payment channel to achieve the purpose of receiving payments. It is a payment gateway-to-payment gateway model (similar to online banking payment). There are mainly Shenzhen Express Huitong, 95epay , Glbpay, Capitel. , Wedopay, online banking online, paypal and others provide online payment services.

This payment method can be refused, can protect the interests of consumers, and is easy and fast to operate, so it is loved by foreign friends. If you want to be in the European and American markets, at least one credit card per person in Europe and the United States is equivalent to an ID card. The credit value is useful for buying a house and a loan. Online shopping is developed, and credit card collection is indispensable.

Convenient

Convenience means that consumers use credit cards to pay online, eliminating traditional payment methods such as Western Union, Money Gram, and Telegraphic Transfer (wire transfer). The first step is to go to the corresponding institution to handle, and for new customers In the future, there will be a kind of distrust, which will lead to the loss of some customers.

Simple real-time

Real-time is because all operations are completed online, so buyers and sellers can know whether the payment is successful or not in the shortest time. As long as the background is in the background, you can see whether the transaction is successful, and the background can be shipped after seeing the success.

Huge market

There are almost 1.5 billion people with international credit cards worldwide. Europe and the United States basically have a credit card. At the same time, Europe and the United States also prefer to use credit cards for shopping, which is also in line with European and American consumer habits. For first-time online shoppers, generally they will choose their existing payment methods to pay, which will help merchants to develop new customers to a great extent and bring greater benefits to merchants.

Safe and reliable

Security is because the online payment method of credit card is provided by a third-party payment company, but because the third-party payment company cooperates with banks and credit card organizations, it has a stronger bank risk in addition to the third party's own risk control system. The control system and the credit card database of the credit card organization act as safeguards. Everyone can rest assured.

Promote consumption

When a customer enters a website, the desire to purchase the product is not very strong, but if a convenient (existing) payment method can be provided, then the consumer will hesitate. At that moment, the desire to buy is generated. To a great extent attracted consumers to buy.

Accounts are not frozen and chargeback rates are low

Even for customers who are imitation cards, there is no need to worry about foreigners' chargebacks. In mainstream credit card consumption areas in Europe and the United States, where credit mechanisms are sound, credit card chargebacks not only require the cardholder to go to the cardholder to handle it, but also show relevant At the same time, if the credit card is refused, the credit system will be reduced, and the credit system will directly affect his car loan, housing loan and other loan problems. From this perspective, consumers will not easily refuse to pay. According to surveys by credit card organizations such as visa, master, jcb, American Express, and Diners Club, the chargeback rate is generally below 5 per thousand.

What is international credit card payment? Many people don't understand how to collect money with a credit card? First, the customer is required to provide the following information: type of credit card, such as VISA or MASTERCARD, company card (with company and personal name) name, credit card number, expiration date, personal card (only personal name) name (Name), Credit card number, Expiration date.

From the perspective of risk analysis-the exact concept of a credit card is a credit card, which is different from the debit card commonly used in China. The fundamental difference between the two is that the former uses money first and then pays back, which is equivalent to borrowing money and having a certain number of days of interest-free period; after the interest-free period, a certain amount of interest is charged. The latter saves money first, and then uses it. All the money they use is free of charge.

Then the risk of paying with a credit card comes from "paying money first, then paying back." We can look at the process:

1. The buyer issues a payment instruction from his credit card to the issuing bank.

2. The bank advances money to our bank

3. The bank notifies the cardholder of the repayment date and amount of the interest-free period.

After that, although we have completed the transaction, the purchase price is only guaranteed 100% when the buyer takes the following actions:

(1) The buyer repays before the repayment date expires, and the transaction is successfully completed. Our payment was successful.

(2) The buyer pays the part first, which is generally larger than the minimum repayment amount specified by the bank, and the rest is used as a loan to the bank, and confirms that he agrees to pay the interest, and then gradually repays the principal and interest. In the end, the buyer gets financing convenience, the bank gets interest income, and the seller gets the payment in time for a win-win situation.

If the buyer proves that the payment transaction was cancelled, the reason can be a return, etc., or a shortage, or a quality problem, then the trouble comes:

When the buyer informs the card-issuing bank to cancel the payment, the card-issuing bank informs the credit card clearing company, such as VISA, MASTER or our UnionPay, to request a refund. The credit card clearing company will then deduct the refund from the payee bank.

Then the beneficiary bank will deduct from our card to the credit card clearing company. At this point, there may be situations:

(1) If we have enough money in our card to deduct it, we will recognize it.

(2) If there is no money in our card, you need to deposit it. Then the problems that will appear at this time are:

a. We confirm the refund, deposit into the card, and refund smoothly.

b. We deny refunds. If we do not deposit, we will form an overdraft, enter the overdraft blacklist, and face bank debt collection.

The consumer fills in the credit card information on the merchant website and clicks submit; in fact, this is a payment application submitted to the banking system. This payment application is first submitted to the credit card payment gateway. The payment gateway system submits the submitted information to the banking system for verification and This transaction is given a risk score value. When the risk value reaches a certain score, the system will judge it as a high-risk transaction, and thus reject the chargeback and feedback the result of the payment failure. Otherwise, it will return the result of the successful payment. So what are the reasons for unsuccessful credit card payments? ?

1. Unauthorized transaction : The card used by consumers for payment is a 3D card, and the 3D verification code is not filled in during the payment process. Therefore, the system will judge it as an unauthorized transaction and refuse to debit it.

2. Black cards , stolen cards , duplicate cards : The card system used by consumers for payment is identified as black cards, duplicate cards and other illegal cards, and the system refuses to charge.

3. The card balance is insufficient or the card validity period has expired : the credit card credit limit is insufficient to process the transaction, the cardholder has entered an incorrect expiration date, or the credit card term has expired. Cardholders are required to contact the card issuer for relevant information.

4. Payment in risky areas : The IP paid by consumers comes from high-risk areas listed by international credit card organizations. The system will judge high-risk transactions. Merchants can also block high-risk areas themselves and refuse to charge. Example: Venezuela (regions with poor credit systems in Asia and Africa)

5. Cross-border , cross-region transaction payment : The card used by consumers for payment is a non-domestic card, which is suspected of card theft consumption, so the system will evaluate it as a high-analysis transaction, and refuse to charge.

6. Network problems : Slow Internet access or other network problems when consumers pay. Repeated refreshing of the payment page causes multiple submissions of payment applications or the system fails to receive payment applications.

7. Repeated payment within the same IP multiple times or within a short period of time but with a long distance from the consumer: Consumers repeatedly pay multiple times within the same IP within a short period of time, suspected of other illegal acts such as cash, money laundering, fraud, etc. Decline chargeback.

8. Single payment limit is too high

: The single payment limit exceeds the maximum single payment limit of the consumer card or exceeds the maximum single payment limit set by the system.

9. Cards with bad transaction records : Cards used by consumers for payment, which have bad transaction records, such as chargebacks.

10. Issuing bank refuses to charge back: The issuing bank that the consumer consumes refuses to charge, the specific reason needs the consumer to contact his issuing bank to understand the reason for the rejection.

1. Refusal of payment

1. Refusal of international credit card itself has a 180-day chargeback period (some credit cards can be refused even after 180 days). The so-called charge back (cb) refers to the credit card holder's own request for the money to be returned. Reasons for behavioral chargeback: 1. The customer did not receive the goods 2. The goods are not on the right board 3. The quality of the goods 4. Black card, stolen cards, business card transactions 5. Scammers

2. The attitude of handling chargebacks is obviously biased towards buyers compared to the well-known international payment channel paypal, and the account is frozen with almost no reason. The credit card channel pays attention to the interests of both buyers and sellers. The situation of the goods and the attitude of the buyer will be dealt with, and the channel will not be closed and the merchant's funds will be frozen, so the handling of the chargeback is undoubtedly more fair.

Difference between credit card and paypal

How to define credit card payment and paypal in foreign trade payment ? At present, many foreign trade online shop merchants have this misunderstanding. They believe that with paypal payment, they can meet the requirements of all customers. The credit card payment channel is optional. In fact, this is not the case.

Paypal payment is good. Many foreigners like paypal payment, but there are also many people who do not have a paypal account. Just like the domestic Alipay account, not everyone has it.

Paypal is an account model that requires both parties to the transaction to register with a paypal account. Although credit card payment is also supported, in the final analysis, payment can only be completed through a paypal account, not a real credit card online payment. The buyer must bind the credit card account to the paypal account, and then use the credit card to deposit into the paypal account before making the payment. Because the paypal transaction does not go through the bank gateway, if the buyer refuses to pay, the online operation is fine, and it has no effect on his reputation. What's most worrying for Chinese buyers is that they freeze their accounts for no reason. One was 180 days and the results were unknown. This is undoubtedly an axe hanging over the seller's head, which makes the business people frightened every day. I often see people in the forums and on the Internet saying that they have delivered the goods clearly, and the delivery results can be found in the network system of the courier company. However, I still can't get my money back because I don't have a paper receipt.

The advantages and disadvantages of paypal:

Pros: Meet the trading style of most countries. Have a user group that cannot be ignored. No account opening fees.

Disadvantages: imitation card collection is not supported, it is easy to freeze account numbers and funds, and it is biased to protect the interests of buyers. Compared with merchants, there is no guarantee, and subsequent restrictions and fees such as withdrawals are more.

Credit card consumption is a popular consumption method in the world today, especially in Europe and the United States, it is basically a card with a human hand, and the credit system has already been perfected. Swiping with a credit card is also a habit of spending in advance. Paying online with a credit card while shopping has become mainstream. Therefore, credit card collection is closely related to your business. If you choose to do a foreign trade online shop as a business, it is bound to be inseparable from credit card collection. Credit card online payment, the buyer cannot easily refuse to pay, the chargeback will affect the buyer's credit card credit limit.

Advantages of credit card payment channels:

1. Cater to the consumption habits of foreign buyers and make payment more convenient;

2. Reduction of chargeback: Because it is a bank-to-bank model, buyer chargebacks need to go to the card issuer for chargeback, and the card issuer will also check the chargeback to see if it is a malicious chargeback (if it is If the malicious chargeback occurs, the bank will have a record on the credit history of the cardholder.) It will cause great inconvenience to future life and work, so cardholders generally do not refuse to charge randomly. The chargeback has no effect on the cardholder's credit history. Therefore, the chargeback ratio for credit card payments is relatively small compared to the account-to-account model ratio. According to statistics from the International Card Organization, the probability of non-payment of credit card purchases does not exceed five thousandths, to ensure that buyers and sellers.

3. Expand potential customers: Credit card payment is: as long as the buyer holds a credit card, payment can be completed. Account-to-account model: Both parties need to have registered accounts at the payment company. The number of credit card holders is much larger than the number of registered companies in payment companies. Almost one person has a credit card in Europe and the United States, and PP has an anti-PP alliance. In Europe and America, if anyone does not have a credit card, others will think this is an incredible thing, so the potential customer group of merchants is expanded invisibly.

4. Account will not be frozen: if it is an account-to-account transaction, if a transaction is disputed, the buyer and seller cannot reach an agreement. The payment company will freeze the entire account of the seller to protect the interests of the buyer from loss (other circumstances will also freeze the account) credit card payment. If there is a transaction dispute, the amount of the transaction will be frozen without affecting The entire account. No withdrawal fee: the specific reasons will not be analyzed. Moreover, the stand of domestic corridors is on the side of domestic merchants, and try their best to protect the interests of merchants, while PP itself has a certain prejudice against domestic regions. The reasons for freezing merchants are strange and very inconvenient.

5. The buyer's payment process is simple and convenient: Select the corresponding item on the buyer page and click "check out" to directly enter the credit card verification page. This reduces the number of payment steps, facilitates payment by buyers, and makes payment quick (it only takes 3-5 seconds).

The actual benefits brought by credit card payments to merchants (sellers) are that they can bring more orders to merchants, earn more foreign exchange, and stabilize payments, without any impact on foreign trade.

6. The customer base is huge, and the number of international Visa and Master card users exceeds 2 billion, especially in Europe and the United States, with a high utilization rate.

Disadvantages: Account opening fees and annual service fees are required, and the threshold is a bit high

Credit card collection channels and paypal collections are not in conflict. Both have advantages and disadvantages. When combined, they can complement each other's shortcomings and meet the needs of different buyers. Increasing orders is the best combination tool for foreign trade collections. .

What are real-time channels and delay channels?

1. What is a real-time channel?

The real-time channel is the feedback of the transaction results immediately after the order transaction comes in. The buyer can immediately see whether the payment result is successful or failed.

2.What is a delay channel?

The delayed channel is that after the buyer pays in, the transaction result can be displayed within 8-24 hours, success or failure or pending confirmation.

3. What is the difference between a real-time channel and a delayed channel?

The most essential difference between a real-time channel and a delayed channel is the presence or absence of manual review. The real-time channel is to set a point on risk control. If the transaction comes in, the system evaluates and detects that the risk of the transaction is higher than the risk control point set by the system, and the order will automatically fail. If it is lower than the risk control point, it will succeed. Pay in. In addition to the assessment of the risk control system, the delayed channel also adds a professional manual review of orders. If the order is abnormal and there is a certain risk, it will be classified as a high-risk transaction, and the transaction result will be displayed as pending. After the system blocks the high-risk transaction, contact the merchant to confirm whether the transaction is released. If the merchant confirms that the transaction is OK by contacting the buyer, the transaction can be paid in normally. In this way, the inflow of black cards and stolen cards was strictly controlled, the rate of chargebacks was controlled and reduced, and the interests of merchants were ultimately protected. Therefore, the delay channel needs to display trading results within 24 hours.

4. Which is better, real-time channel or delay channel? Take, for example, the foreign-card acquiring business paid by Speed Huitong:

In fact, the success rate of non-3D real-time channels and delay channels is basically the same. Many foreign trade merchants feel that the real-time channel knows that the transaction result is better than the delayed pass. The delayed channel is anxious, but many merchants ignore the important point. The real-time channel feedback result is fast, but the chargeback rate is also inevitable high. Because there is less manual review of real-time channels, the high-risk transactions of black cards and stolen cards will inevitably come in, which will directly increase the rate of chargebacks and directly harm the interests of merchants. And the real-time channel displays the transaction results in real time, so if the transaction is successful, the commission will be deducted immediately. At this time, if you happen to be out of stock, and you just do nt have the goods that the buyer wants, then you must give the buyer a refund. This is not a loss of the transaction fee.

The delayed channel adds manual review, which effectively reduces the entry of high-risk transactions for black cards and stolen cards, strictly controls the rate of chargeback, and protects the interests of merchants. And the transaction results are displayed within 24 hours of the delay channel. If the merchant finds that the stock is out of stock and out of stock, in order to avoid losses, the transaction can be cancelled.

In fact, both real-time and delay channels have advantages and disadvantages, but from the perspective of risk control and chargeback control, the delay channel is better. After all, risk control directly affects the interests of channel merchants.

What Is a Credit Card Merchant Account?

Credit card payment

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