Existing Customer Questions

What is a chargeback?

A chargeback occurs when a cardholder disputes a transaction on an account and the credit card’s issuing bank initiates an investigation on the cardholder’s behalf. If the transaction is found to have been fraudulent, then the issuing bank refunds the original amount to the cardholder. If the merchant cannot prove that the transaction is a legitimate one, then the credit card–issuing bank will take back the full amount of the fraudulent transaction from the merchant’s bank account, along with a fee.

How do I avoid chargebacks?

  • Make your business name the same as the name on the site.
  • Post your number on the billing descriptor. If possible, an “800” number.
  • Provide excellent customer service, and if needed, offer a refund to your customers.

What is the interchange fee?

Visa and MasterCard assess a fee for every payment transaction processed by participating merchants. This interchange fee is passed on to the financial institution that issued the card. The card issuer credits the merchant’s account with an amount equal to the transaction amount, less the interchange fee.

What type of fraud protection is available for high risk merchant accounts?

Sophisticated fraud protection tools are included in every merchant account. You can set the desired level of protection through your payment processing gateway. In addition, services are offered to you help you control and reduce chargebacks.

What is the discount rate?

The discount rate is a percentage of each transaction that the acquiring bank charges for the transaction to be processed. This is based on bank underwriting in regard to the risk associated with the business and industry sector that is applying for the merchant account.

What is the transaction fee?

This fee is a flat charge on each transaction that the acquiring bank levies for the transaction to be processed. This will vary based on the acquiring bank, and will be disclosed upfront as well.

What is the refund fee?

The refund fee is charged anytime you make a refund to a customer’s card for any reason. It covers the transaction cost of moving the funds back to the customer’s card-issuing bank. This fee will vary depending on the bank.

What is the rolling reserve and how does it work?

A merchant account works just like a line of credit that a consumer might be issued with a regular credit card. It is, in effect, a line of credit issued to a business by the acquiring bank. The processor and bank will forward you the funds from a credit card transaction BEFORE they actually receive the money from your customer’s bank. Customers have up to six (6) months, in most cases, to contact the card-issuing bank and request that the transaction be reversed. The rolling reserve is an account that the acquiring bank creates to hold your funds (generally 10% for 180 days). They release this amount to you in arrears — so if it is a 10% RR 180 days in arrears, then on month 7 you get paid back for month 1, month 8 pays back month 2, etc. The processing company does this to ensure it is covered in the event of a fraudulent merchant or customer. This is generally in place for offshore merchants and some higher-risk domestic merchants on a case-by-case basis.

What is 3D Secure/VBV?

3D Secure is MasterCard’s fraud prevention service that forces customers of participating merchants’ websites to sign up for an account to verify their personal information. VBV means Verified by Visa, and is very similar to 3D Secure.

Pre Sale Questions

What types of business do you accept?

We assist merchants from all industries, both domestically and offshore. We will review your application and give you an upfront indication of what options may be currently available for your business.We have solutions for retail card present, wireless, e-commerce and MO/TO merchants via our large network of domestic and international banking partners.

We will strive to find solutions that are best tailored to your business, and work to expand your range of payment options to give you the edge over your competition.

How long does it take to get approved?

It takes 24-48 hours. Set up and shipment will be immediate upon approval.

What are the advantages of accepting credit cards online?

Credit card transactions process quickly — usually within a day or two. This improves your cash flow, eliminating the wait for checks to clear or customers to make payments after being billed. Online shoppers look for merchants that accept credit card payments. They can have peace of mind knowing that online transactions are screened diligently to help protect them against fraud and identity theft. It is a seamless method of payment for both the customer and the merchant; what’s more, accepting credit cards online can increase sales by opening up services to a wider customer base.

What if I have bad credit?

We approve accounts regardless of credit history. We have the highest approval rate in the industry.

Do I need a bank account to accept credit cards and does it have to be a business checking account?

You will need a bank account and a business account so you can receive funds from your customers. Only if you are sole-ownership, we can deposit to a personal bank account.

What are my requirements to open a merchant account?

A  business checking account is one of the requirements to open a high-risk merchant account. Credit card payments are deposited  directly into the account. These funds are available in regular merchant accounts within two business days, but high-risk merchant accounts may have longer wait times. Also, a valid photo ID, business license, current bank account statement, and previous merchant statements, if any, are needed to open this type of account. There are no setup fees for opening a new account, which may be done online. Approval takes 24–48 hours after submitting the application.

How will I receive my money?

The sales will be deposited directly into your checking account. Funds are available within two to seven business days.International high risk accounts settle weekly, bi-weekly, or daily, depending upon the processing volume and your requirements for settlements.

Do high risk merchant merchants have a virtual terminal included?

Yes. Virtual terminals are included with high risk merchant accounts. A virtual terminal gives you secure access to your account from any internet browser, allowing you to process transactions manually. VTs are commonly used for phone and mail order transactions.

How much monthly processing is available for international high risk accounts?

International merchant accounts usually do not have caps on volumes. As long as you maintain your merchant account in good standing, you can process as much volume as you need. Still, if you are processing high volumes, it’s always wise to have more than one account to protect business operations.

What is the application fee for a high risk merchant account?

Application for high risk merchant accounts is always free. Be wary of companies that charge you upfront application fees. These companies often care more about fees than getting you an account

How do you apply for a high risk merchant account?

Applying for a high risk merchant account is the same as applying for a standard merchant account. You fill out an application form and submit supporting due diligence documentation for the acquiring bank.

Are start up companies accepted?

Generally, startups are not accepted. Exceptions can be made for companies which have substantial growth potential such as those in emerging industries. Startups need to have a solid business plan and be well-capitalized in order to submit an application.

What if I need assistance with my merchant account or processing?

You will always have a reliable direct contact with your processing company to resolve any issues that may arise. In addition, IPayTotal will act as your liaison to the bank for the lifetime of your merchant account, and we can always be reached via e-mail, phone or Skype for any account-related issues. We strive to resolve all merchant issues as quickly as possible.

How long will is take to be up and running?

Time frame to establish: 3-4 weeks once your application has been submitted

What is the approval time?

1 or 2 days. Maximum 48 hours


Will I have to pay a large up front fee before I am approved for my account?

Here at iPayTotal we do not believe in paying large up

front fees for merchant account applications.

What is your discount rate for direct accounts?

Our Direct account Discount rate ranges from 5 to 6.75% and requires 6 months of processing history to secure.

What is your discount rate for Third party accounts?

Third party Merchant accounts range from 7-11% however these accounts

require no processing records and are therefore easier to secure.

How much holdback do you take?

Hold backs (held for a 6 month duration) and will depend on your charge

back history and the nature of you product line.

How much will I pay per Transaction?

Transaction Fees are 20 cents per transaction.

What is your charge back fee?

Chargeback fee: $25