DirectPayNet

Category: PAYMENT GATEWAY

  • Best Cross-Border Payments Practices for Travel Businesses

    Best Cross-Border Payments Practices for Travel Businesses

    Travel connects people across the globe. But when it comes to accepting payments from international customers, things can get tricky fast.

    If you run a travel business-whether it’s a tour company, hotel, or booking platform-you’ve probably faced the headache of cross-border payments. Different currencies, surprise fees, and confusing checkout experiences can all get in the way of a smooth booking.

    Handling cross-border payments doesn’t have to be complicated, though. With the right payment gateway and a few smart strategies, you can make it easy for travelers from any country to book with confidence.

    LOWER YOUR CROSS-BORDER FEES

    The Ins and Outs Cross-Border Payments

    Cross-border payments happen when your travel business accepts money from customers in another country. This is common in the travel industry, where your guests might book from anywhere in the world.

    Whether someone is reserving a hotel room from Paris or booking a tour from Tokyo, you need to be ready to handle their payment smoothly.

    But accepting international payments isn’t as simple as taking money from someone down the street. You have to deal with different currencies, exchange rates, and sometimes extra fees from banks or card networks. If you’re not careful, these challenges can lead to confusion for your customers and unexpected costs for your business.

    Here’s what makes cross-border payments unique:

    • Multiple Currencies: Your customers want to pay in their own currency, but your business might operate in another. This means you have to convert between currencies, which can affect the final price.
    • International Fees: Banks and card networks often charge extra fees for processing payments from other countries. These can add up quickly if you’re not prepared.
    • Exchange Rates: Currency values change all the time. The rate at the moment of purchase can impact how much you or your customer actually pay.
    • Regulations: Different countries have their own rules for payments, taxes, and security. You need to make sure you’re following the right guidelines to avoid trouble.

    These are the basics of cross-border payments and the first step toward optimizing your travel business.

    ACTIVATE CROSS-BORDER PAYMENTS AT CHECKOUT

    The Role of Payment Gateways

    Payment gateways are the secret sauce behind smooth, secure online transactions-especially when it comes to cross-border payments. Think of them as digital cashiers that handle the entire payment process, from the moment a traveler enters their card details to the final confirmation of the booking.

    How Payment Gateways Process International Transactions

    When a customer from another country books with you, your payment gateway steps in to:

    • Collect payment details securely from your website or app.
    • Convert currencies if your customer pays in a different currency than your business uses.
    • Communicate with banks and card networks across borders to get the payment approved.
    • Protect against fraud by checking for suspicious activity and following security standards.

    A good payment gateway makes all this happen in just a few seconds, so your customer enjoys a fast and hassle-free checkout.

    Key Features Travel Businesses Should Look For

    Not all payment gateways are created equal. Here’s what you should look for:

    • Multi-currency support: Let your customers pay in their own currency for a familiar experience.
    • Transparent fees: Know exactly what you’ll be charged for international transactions.
    • Strong security: Look for gateways that are PCI DSS compliant and offer advanced fraud protection.
    • Easy integration: The gateway should work smoothly with your booking system, website, or app.

    Intro to Dynamic Currency Conversion (DCC)

    One standout feature for cross-border payments is dynamic currency conversion (DCC). DCC lets your international customers see prices and pay in their home currency, right at checkout. This adds convenience and transparency, helping travelers feel more comfortable booking with you.

    CONNECT WITH A MORE POWERFUL GATEWAY

    Dynamic Currency Conversion Makes Payments Easy

    Dynamic currency conversion, or DCC, is a life saver for travel businesses. With DCC, you give travelers the option to see prices and pay in their own currency at checkout—no mental math or surprises later on their bank statement.

    What Is DCC?

    DCC is a feature built into many payment gateways that detects the cardholder’s country and automatically offers them the choice to pay in their home currency.

    Instead of guessing how much a hotel room in euros will cost in yen or dollars, your customer sees the exact amount in a currency they understand.

    How DCC Works in the Payment Gateway

    Here’s how the process usually goes:

    1. Customer enters payment details: The gateway recognizes the card’s country of origin.
    2. Currency choice appears: The customer can choose to pay in your business’s currency or their own.
    3. Real-time conversion: The gateway shows the converted amount, using up-to-date exchange rates.
    4. Transparent checkout: The customer confirms their choice and completes the booking.

    This all happens in seconds, making the payment process smooth and reassuring.

    Pros

    • For travelers: No surprises on their card statement, and they know exactly what they’re paying.
    • For businesses: Fewer abandoned bookings, happier customers, and sometimes a share of the conversion fee.

    Cons

    • For travelers: The exchange rate might be slightly higher than what their bank offers.
    • For businesses: You need to be clear about any extra fees or rate markups to avoid customer frustration.

    By using DCC wisely, you make international payments easier for your customers and boost trust in your travel business.

    ACTIVATE DCC IN YOUR GATEWAY

    Best Practices for Handling Cross-Border Payments

    Handling cross-border payments doesn’t have to be overwhelming. By following a few best practices, you can streamline your payment process, reduce costs, and create a better experience for your international travelers.

    Offer Local Payment Methods

    Travelers want to pay using methods they trust and use at home. Accepting local payment options, like Alipay, WeChat Pay, or local credit cards, can boost your conversion rates and make your business more appealing to a global audience.

    Consider where your travelers are coming from and enable the most popular payment methods for those regions.

    Leverage the Right Technology

    Modern payment gateways with multi-currency support and real-time data make cross-border transactions faster and more transparent.

    Choose a gateway that integrates easily with your booking system and provides instant currency conversions, clear fee breakdowns, and robust reporting tools. This helps you manage payments efficiently and gives travelers confidence at checkout.

    Be Transparent About Fees and Exchange Rates

    No one likes hidden charges. Clearly display all fees and exchange rates before your customer completes their booking.

    This transparency builds trust and reduces the risk of disputes or abandoned carts. If you offer dynamic currency conversion, always show the exact rate and any additional fees upfront.

    Pay and Accept Payments in Local Currencies

    Whenever possible, let your customers pay in their own currency and pay suppliers in theirs. This minimizes conversion fees and can even help you negotiate better terms with partners.

    It also simplifies the payment process for everyone involved.

    Validate Payment Data and Monitor for Fraud

    smooth cross-border transactions requires accurate payment information.

    Double-check customer and supplier details to avoid costly delays or failed payments. Implement strong fraud prevention tools and monitor transactions for suspicious activity, especially with international bookings.

    Stay Compliant with Local Regulations

    Cross-border payments are subject to different rules in every country. Make sure your payment gateway complies with local regulations, including anti-money laundering (AML) and know-your-customer (KYC) requirements.

    This keeps your business safe and avoids legal headaches down the road.

    Keep Checkout Simple and Mobile-Friendly

    Travelers often book on the go. A streamlined, mobile-friendly checkout process reduces friction and increases completed bookings.

    Make sure your payment forms are easy to use, fast, and available in multiple languages and currencies.

    By following these best practices, you’ll make cross-border payments smoother for your travel business and your customers-no matter where in the world they’re booking from.

    BOOST YOUR BOTTOM LINE

  • Is Stripe Safe?

    Is Stripe Safe?

    Is Stripe safe? Most online business owners look at Stripe and see a safe, secure, all-in-one solution to their payment needs. Stripe handles billions of dollars in transactions for companies worldwide.

    But popularity doesn’t equal security.

    Payment security is one of the most important aspects of a thriving business. Every time a customer enters their credit card details, they’re trusting you with their financial information. One security breach can shatter that trust and ruin your business.

    Here’s the hard truth: while Stripe offers many security features, it is still a risky choice for most businesses. A dedicated merchant account often provides better protection and stability for your company’s financial health.

    AVOID STRIPE ACCOUNT CLOSURES

    What is Stripe?

    Stripe is a third-party payment processor that allows businesses to accept online payments without their own merchant account. Unlike traditional payment solutions that require you to establish a direct relationship with a bank, Stripe simplifies the process significantly.

    As a payment aggregator, Stripe groups all its users under one big master merchant account, making it easy for anyone to start accepting payments quickly. This shared approach means your business transactions flow through Stripe’s account rather than through an individual merchant account of your own.

    This aggregation model does offer advantages for new businesses. You won’t face the:

    • lengthy application process,
    • detailed credit checks,
    • or financial stability reviews.

    These are typically required when opening a traditional merchant account. Instead, you can sign up with Stripe and begin processing customer payments almost immediately.

    Stripe handles all aspects of electronic payment processing in one integrated platform. When customers make a purchase, Stripe captures their payment information, communicates with card networks and banks to verify the transaction, and transfers the approved funds to your account.

    This all-in-one approach eliminates the need to work with multiple payment service providers.

    With support for more than 135 global currencies and various payment methods including credit cards, debit cards, and digital wallets, Stripe is a great initial step for new businesses as well as a good backup for established businesses.

    GET YOUR OWN DEDICATED MERCHANT ACCOUNT

    How Stripe Works

    When a customer pays at checkout, Stripe securely grabs their info and makes sure the money goes where it needs to go. The process happens in three main steps, all working behind the scenes to keep transactions smooth and secure.

    1. Customer Submits Payment Info

    First, your customer provides their payment information on your website or app. Stripe immediately encrypts this sensitive data through its payment gateway, protecting card details from potential threats.

    This encrypted information then moves to an acquiring bank that processes the transaction on your behalf.

    2. Bank Approves or Declines

    Next, Stripe sends the payment through the appropriate card network (like Visa or Mastercard) to the customer’s issuing bank. The bank quickly approves or declines the transaction based on available funds and security checks.

    This approval signal travels back through the same path, letting your customer know if their payment succeeded.

    3. Transfer of Funds

    Once approved, funds transfer from Stripe to your business bank account. The entire process happens seamlessly, with Stripe handling all the communication between banks, card networks, and your business.

    Payment Methods

    Stripe supports a wide range of payment methods. Beyond standard credit and debit cards from global networks like Visa, Mastercard, and American Express, Stripe processes payments through:

    • Digital wallets (Apple Pay, Google Pay)
    • Buy now, pay later options (Affirm, Afterpay/Clearpay, Klarna)
    • Bank transfers and debits (ACH, SEPA, Bacs)
    • Local payment methods (Alipay, Bancontact, iDEAL)
    • Cryptocurrency payments

    Fraud Prevention

    To protect both you and your customers, Stripe employs some level of automated fraud detection measures. Their system, Stripe Radar, uses machine learning algorithms to identify suspicious transactions before they process.

    This technology analyzes transaction patterns across Stripe’s global network to spot potential fraud. You can also create custom rules to match your specific business needs, preventing both fraud and false positives that might block legitimate sales.

    Stripe Radar is quite trigger happy. If you are dead-set on using Stripe, then you need to configure its settings for your business.

    Compliance

    When you use Stripe, you benefit from their built-in compliance features that help meet industry standards for data security and privacy. This saves you from handling sensitive payment information directly, reducing your compliance burden while keeping your customers’ data safe.

    OPEN A BETTER BACKUP PAYMENT SOLUTION

    Why Stripe Might Not Be Safe for Your Business

    Stripe can shut down your account without warning, leaving you in a tough spot. This affects thousands of merchants every year, particularly those in high-risk industries that make up about 90% of online businesses.

    When Stripe terminates your account, you’ll typically receive just one automated email with minimal explanation. The message usually cites a vague “violation of terms of service” without specific details about what triggered the closure. This lack of transparency makes it nearly impossible to address the actual issue.

    Even worse, Stripe can freeze your funds for up to 180 days after closing your account. Imagine losing access to thousands of dollars of your business revenue for six months with no recourse. This sudden cash flow disruption can obliterate small businesses.

    The appeal process is practically nonexistent. While Stripe claims to respond to customers within 24 hours, many merchants report this rarely happens. Most appeals fail because Stripe’s decision is typically final. Their customer support has earned criticism for being slow, impersonal, and difficult to access, often providing generic responses without concrete solutions.

    High-risk businesses face the greatest danger. If your business involves:

    • digital goods,
    • subscription services,
    • international transactions,

    or operates in industries like:

    • nutraceuticals,
    • gaming,
    • or affiliate marketing,

    Stripe will view you as too risky. Even a temporary spike in sales or a few chargebacks can trigger Stripe’s automated risk systems to flag your account.

    For businesses processing significant volume, this risk is unacceptable. Without a dedicated merchant account, you’re essentially building your business on unstable ground, where your payment processing can disappear overnight through no fault of your own.

    STABILIZE YOUR BUSINESS

    Be Your Own Business

    Stripe lumps everyone’s money together, while a dedicated merchant account keeps your funds separate and safe. This fundamental difference in how Stripe handles transactions impacts your business’s financial stability and risk exposure.

    Stripe operates as a payment facilitator or “PayFac,” using a master merchant account to process transactions for all its users. When you use Stripe, your business becomes a sub-merchant under this master account. This means Stripe funnels multiple merchants and their associated transaction funds through their master accounts.

    Benefits Comparison

    When a customer makes a payment through Stripe, the funds first go into Stripe’s master merchant account. Stripe then distributes these funds to your business account after a holding period.

    This aggregation model allows Stripe to onboard businesses quickly without the rigorous underwriting process typically required for individual merchant accounts.

    In contrast, a dedicated merchant account provides your business with its own unique account for processing payments. When a customer pays you, the funds go directly into your merchant account. This direct path gives you more control over your funds and often allows for faster access to your money.

    A dedicated merchant account offers several advantages:

    1. Greater stability: Your account is less likely to be suddenly frozen or closed due to other merchants’ activities.
    2. Tailored risk assessment: The account is underwritten based on your specific business, not a one-size-fits-all approach.
    3. Negotiable rates: With higher volumes, you can often secure better processing rates.
    4. Personalized support: Many providers offer dedicated account managers to help resolve issues quickly.

    While Stripe’s aggregated model offers convenience, it can expose your business to higher risks. If Stripe detects suspicious activity from any of its sub-merchants, it might implement stricter controls or even freeze funds across multiple accounts.

    With a dedicated merchant account, your funds are isolated from other businesses, reducing your exposure to such risks.

    For high-volume or high-risk businesses, a dedicated merchant account often provides a more stable and secure payment processing solution. It gives you direct control over your funds and builds a true banking history that can be valuable for your business’s long-term financial health.

    OPEN A DEDICATED MERCHANT ACCOUNT

    Factors That Make You “High-Risk” to Stripe

    Stripe sees your business as risky if you sell certain products or have too many refunds. Understanding what triggers Stripe’s risk assessment systems helps you protect your business from sudden account closures.

    Industry and Business Model

    Certain industries automatically face higher scrutiny from Stripe. These include:

    • Adult entertainment
    • Gambling and sports betting
    • Pharmaceuticals and nutraceuticals
    • Cryptocurrency services
    • Travel and tourism
    • Tobacco and vaping products
    • Financial services (especially loans and credit repair)
    • Legal services (particularly personal injury or bankruptcy)
    • Telemarketing and telecommunications
    • E-commerce (especially high-ticket electronics and jewelry)

    Subscription-based business models also trigger higher risk flags due to their recurring billing nature and potential for disputes.

    Chargeback and Fraud Rates

    Stripe recommends keeping your chargeback rate below 0.75%, though card networks have different thresholds:

    • Visa Dispute Monitoring Program: 0.90%
    • Visa Fraud Monitoring Program: 0.75%
    • Mastercard Excessive Merchant: 1.5%

    Frequent chargebacks, refunds, or fraud cases will quickly flag your account for review. Even a sudden spike in disputes before reaching these thresholds can trigger monitoring programs.

    Transaction Characteristics

    Several transaction patterns increase your risk profile:

    • High-ticket items ($100+) face greater chargeback risk
    • Large volumes of international transactions
    • Inconsistent processing volumes (sudden spikes in sales)
    • Heavily regulated products or services

    Geographic Factors

    Your business location affects your risk rating. For example, businesses registered in regions with historically high fraud rates face stricter scrutiny.

    Similarly, if many of your customers come from high-fraud regions, Stripe may flag your account.

    Keep in mind that your business must use an account where it physically operates, not where it plans to sell. For example, if you’re in Estonia, you need an Estonian Stripe account even if you plan to sell only in the USA.

    Business History

    New or unestablished businesses without processing history face higher risk classifications. Stripe has less data to evaluate your reliability, making you a greater unknown risk.

    Being classified as high-risk doesn’t necessarily mean your business operates unethically or illegally. Many legitimate businesses fall into high-risk categories simply due to industry characteristics or business models.

    In fact, about 90% of e-commerce businesses are considered “high-risk,” making this classification extremely common for online merchants.

    What matters most is how you manage this classification through transparent business practices, strong fraud prevention, and maintaining low chargeback rates.

    OPERATE YOUR BUSINESS SECURELY

    When It’s Okay to Use Stripe

    Despite the risks I’ve outlined, Stripe can still play a valuable role in your payment processing strategy. You can use Stripe as a backup, for small transactions, or in specific areas where it works well. The key is understanding when and how to leverage Stripe’s strengths while minimizing exposure to its limitations.

    As a Backup Processor

    Smart businesses never rely on a single payment processor. By implementing Stripe as a secondary processor alongside your dedicated merchant account, you create a safety net for your business.

    If your primary processor experiences technical issues or maintenance downtime, Stripe can keep your sales flowing without interruption. This redundancy ensures you never lose a sale due to payment processing problems.

    For Low-Risk Products or Small Transactions

    Stripe works well for processing low-ticket items that typically don’t trigger high levels of chargebacks. Consider using Stripe for:

    • Products under $50
    • Physical products you have an actual inventory for (not made-to-order)
    • Items with historically low return or dispute rates
    • One-time purchases rather than subscriptions

    By limiting Stripe to these safer transaction types, you reduce the risk of account issues while still benefiting from their streamlined processing.

    For Specific Geographic Regions

    Stripe performs better in certain markets where fraud rates remain consistently low. You might implement a geographic strategy where you:

    • Process payments through Stripe for customers in stable regions like the US, Canada, Australia, and Western Europe
    • Route transactions from higher-risk regions through your dedicated merchant account
    • Use Stripe’s international currency support for global customers in stable markets

    This approach lets you capitalize on Stripe’s strengths in specific regions while protecting yourself from unnecessary risk.

    For New Businesses Building History

    If you’re just starting out, Stripe is an excellent steppingstone. The easy onboarding process allows new businesses to begin processing payments immediately while building transaction history.

    This processing history becomes valuable when applying for a dedicated merchant account later.

    Consider using Stripe during your first 3-6 months of operation while simultaneously applying for a dedicated merchant account. Once approved for your dedicated account, you can transition your primary processing while keeping Stripe as a backup.

    The 20% Rule

    A good rule of thumb: limit your Stripe processing to no more than 20% of your total transaction volume. This gives you the convenience of Stripe for appropriate situations while keeping your primary business operations on more stable ground with a dedicated merchant account.

    START YOUR MERCHANT ACCOUNT APPLICATION

    The Best Payment Solution Is a Dedicated Merchant Account

    The best way to protect your business is to get your own merchant account. While Stripe offers convenience, a dedicated merchant account provides the stability and security that growing businesses need.

    A dedicated merchant account creates a direct relationship between your business and an acquiring bank. This relationship means your funds flow directly to you without passing through a third-party aggregator’s master account. This direct connection reduces the risk of sudden account freezes or terminations that plague many Stripe users.

    Here are the advantages you’ll benefit from with a dedicated merchant account:

    • Fund Security: Your money remains separate from other merchants, eliminating the risk of being affected by others’ problematic transactions.
    • Stability: Once approved, your account rarely faces sudden closures or freezes, providing peace of mind and predictable cash flow.
    • Tailored Terms: Your account terms reflect your specific business model rather than one-size-fits-all policies.
    • Personalized Support: Access to dedicated account managers who understand your business and can help resolve issues quickly.
    • Negotiable Rates: As your volume grows, you can often negotiate better processing rates, potentially saving thousands in fees.
    • Chargeback Protection: Many dedicated merchant accounts offer more robust chargeback prevention tools and higher tolerance thresholds.

    At DirectPayNet, we specialize in securing merchant accounts for businesses that payment processors like Stripe consider “high-risk.” Our team understands the unique challenges faced by businesses in industries like nutraceuticals, subscription services, digital products, and many others that struggle with traditional payment processors.

    We work with a network of acquiring banks and payment processors who specifically cater to high-risk industries. Our relationships with these providers allow us to match your business with the right payment solution that understands your business model and provides the stability you need.

    Don’t wait until Stripe freezes your account to take action. Contact us today to secure a dedicated merchant account that protects your business and supports your growth. Our application process is straightforward, and our team will guide you through every step, from initial application to account setup.

    Take control of your payment processing now and build your business on a foundation that won’t disappear overnight.

    SCALE YOUR BUSINESS SECURELY

    Frequently Asked Questions About Stripe

    Q1: Is Stripe suitable for online businesses?

    Not typically for high-risk businesses, which make up about 90% of online businesses. While Stripe offers robust security features and encryption for payment processing, their aggregated account model poses significant risks for many business types.

    Q2: What happens if Stripe closes my account without warning?

    You’ll need to quickly find an alternative payment processor, such as a high-risk merchant account. Unfortunately, Stripe may freeze your funds for up to 180 days after closing your account, which can severely impact your cash flow. During this time, you’ll have limited options for appeal.

    Q3: Can I use Stripe as a backup processor?

    Yes, this is a prudent strategy. Using Stripe for approximately 20% of your transaction volume while processing your main volume through a dedicated merchant account provides redundancy without exposing your business to excessive risk.

    Q4: Is Stripe safe for new businesses?

    It can be a good starting point for new businesses to build payment processing history, but you should maintain low-risk transactions and begin applying for a dedicated merchant account as soon as possible to ensure long-term stability.

    Q5: Are there regions where Stripe operates more effectively?

    Yes, Stripe tends to perform better in regions with historically low fraud rates, such as te US, Canada, Australia, and Western Europe. You can strategically use Stripe for customers in these stable regions while routing transactions from higher-risk regions through your dedicated merchant account.

    Q6: How does Stripe handle payment processing?

    Stripe processes transactions through an 8-step process: transaction initiation, payment gateway encryption, transaction authorization, issuing-bank verification, authorization response, transaction completion, settlement, and reconciliation. Funds are added to your bank account based on your selected payout schedule.

    Q7: How can I minimize the risk of Stripe closing my account?

    Ensure you maintain low chargeback rates (below 0.75%), implement strong fraud prevention measures, avoid processing high-ticket items through Stripe, and maintain transparent business practices. Also, avoid industries on Stripe’s prohibited businesses list.

    Q8: What payment methods can Stripe accept?

    Stripe accepts major credit and debit cards including Visa, Mastercard, American Express, and Discover (US merchants only). They also support Apple Pay for customers checking out on supported devices.

    OPTIMIZE YOUR PAYMENT STRATEGY

  • Issuer Declined MCC Errors and How to Avoid Them

    Issuer Declined MCC Errors and How to Avoid Them

    When it comes to accepting credit card payments, there are many factors that can contribute to a declined transaction. One of the most common reasons for transaction declines is an “Issuer Declined MCC” message.

    The Merchant Category Code (MCC) is a four-digit code that classifies businesses into different categories based on the products or services they offer. Payment card networks assign these codes, enabling card issuers the ability to identify the type of business a customer is transacting with.

    An “Issuer Declined MCC” message means that the card issuer has declined the transaction due to the MCC associated with the transaction.

    ELIMINATE MCC DECLINES FROM YOUR CHECKOUT

    Why Issuer Declines Happen

    There are many reasons for declined transactions due to MCC classification. These include bank errors, bank override, high-risk merchant categories, and more.

    Common Reasons for Issuer Declined MCC

    Transactions are declined for many reasons, including those not related to the MCC. However, when it comes to MCC, there are some common reasons why an Issuer Declined MCC error message may occur.

    Incorrect MCC Code

    One of the primary reasons transaction declines occur is an incorrect MCC code. If the MCC is incorrect or is not associated with the correct merchant, the payment network will decline the transaction, causing the Issuer Declined MCC error message to appear.

    It’s important for merchants to ensure that they have the right MCC associated with their business.

    High-Risk Merchant Categories

    Certain MCC codes are classified as high-risk, which makes approval for transactions in these industries more difficult. Adult content, gambling, and firearms are all examples of high-risk industries.

    Even if a transaction is legitimate, banks may decline or restrict sales.

    GET HIGH RISK PAYMENT PROCESSING

    Merchant Category Codes (MCC) and Their Impact

    Merchant Category Codes classify businesses into specific categories based on the products or services that they offer.

    The payment card networks (Visa, Mastercard, American Express, Discover) categorize businesses to help card issuers identify the type of business associated with a transaction. MCC codes impact card issuers’ decisions whether to permit transactions or not.

    When a customer makes a purchase, the merchant sends the transaction information to the payment network. The payment network then passes the information to the card issuer, who decides whether to approve, restrict, or deny the transaction. Card issuers use MCC codes for various reasons, including to determine how a transaction fits within their risk profile.

    MCC codes play a significant role in determining the rates that merchants are charged.

    ARE YOU USING THE CORRECT MCC?

    Bank Errors and Declines

    Bank errors are another reason why “Issuer Declined MCC” errors occur. This happens when the bank’s systems have issues, or when there is a technical problem with either the customer’s bank or payment network.

    In such cases, the issuer may decline transactions that would otherwise be approved.

    Sometimes banks can override a transaction, even though it falls under the correct MCC category. For example, a card issuer may decline a transaction due to suspected fraud based on the location of the transaction. Even if it is the correct MCC, invalid card details and a mismatch in card details, or use of a reportedly lost card.

    In addition, credit card decline codes appear from temporary holds or charges placed on the customer’s card account. This causes subsequent transactions to be declined until the hold is lifted.

    It’s also important to note that financial institutions limit how much credit can be extended to a cardholder. A transaction may decline if the cardholder’s credit card limit exceeded its value (insufficient funds).

    Merchants should stay up-to-date with watchdog groups and industry news that may impact their transaction approvals.

    Additionally, merchants may find that some banks are more likely to decline transactions based on their policies. They can avoid these issues by limiting support to banks that approve transactions consistently.

    CONNECT WITH A PROCESSOR THAT BACKS YOUR BUSINESS

    Merchant Override Decline Meaning

    When a bank declines a transaction for a credit card, debit card or prepaid card, the issuer has instructed the bank not to approve the transaction based on their internal rules.

    “Merchant Override Decline” is a more nuanced version of an “Issuer Declined MCC”. When a merchant or payment processor receives a Merchant Override, it means the payment is declined by the payment network, even if it would otherwise be permitted based on the MCC code.

    Instead of a decline message, it’s marked as a decline somewhere within a card issuer’s system.

    Merchant Override is an uncommon error, but it can occur when a merchant is processing a prepaid or gift card. In such cases, the card issuer may have rules in place to decline prepaid or gift card transactions across a specific merchant category or exceed specific transaction amounts.

    To address Merchant Override Declines, merchants can block cards in the payment panel to prevent transactions from going through.

    ACCEPT THE PAYMENT METHODS YOUR CUSTOMERS PREFER

    Credit Card Decline Codes and What to Do

    Each credit card provider has its unique language, messaging, and reason codes, making it challenging to provide a definitive guide for what to do when transactions declined.

    However, there are some best practices that merchants should follow to ensure they can process transactions successfully.

    Contact the Customer

    If a transaction has been declined, the merchant should contact the customer as soon as possible to resolve the issue. The customer can request that their bank approves the transaction when they retry.

    Verify Information

    Merchants should verify with the customer that the AVS billing address verification and expiration date are correct, and the three or four-digit number CVV security code is accurate. Small details can make a big difference in ensuring that payments go through reliably.

    Try a New Card

    Merchants should have a backup plan to get customers to try another card, to assure the correct card number or confirm they aren’t using a stolen card or suggest another payment method to limit the number of declines on specific credit cards.

    Work with a Payment Processor or Gateway

    Working with a payment processor or gateway can simplify the process of handling credit card decline codes. Payment processors have tools for managing the risk, reducing the likelihood of false negatives, and making it easier for the merchant to manage risk factors.

    By having a strategy for when declines happen, merchants can ensure that they continue to accept credit card payments reliably.

    REDUCE DECLINES, BOOST CONVERSIONS

    Solutions to Prevent Issuing Bank Declines from Occurring

    To prevent “Issuer Declined MCC” from occurring, merchants must be proactive about implementing effective risk management strategies, utilizing fraud prevention tools, and educating customers on payment security practices.

    Implement Proper Risk Management Strategies

    Merchants must have a risk management plan in place to address MCC classification and card network restrictions. Strategies that can be implemented include:

    • finding ways to improve payment processing speed.
    • reviewing payment approval processes and categorization.
    • and establishing communication channels with credit card issuers.

    Merchants should consider setting transaction limits, restrict sales to pre-approved customers, perform instant verification through automated routines, and reduce the gender and age impact of certain predetermined MCC codes.

    Utilize Fraud Prevention Tools

    Fraudulent activity is one of the main drivers of “Issuer Declined MCC” resulting from MCC classification. To minimize this risk, merchants must use robust fraud prevention software that leverages high-quality algorithms to detect fraud patterns and thereby enhance payment approval rates.

    Fraud prevention approaches might include biometrics, real-time account authentication, security tokens, or software applications. It would help if you assessed the pros and cons of each approach based on the risk profile of your business and implement the best fraud prevention tool for your specific risk exposure.

    Educate Customers on Payment Security Practices

    Educating customers on payment security practices can also help merchants prevent declines. Merchants can provide clear and concise instructions on the importance of updating their accounts with all the necessary information, including the correct billing information and security codes.

    Additionally, making sure customers are aware of cybersecurity threats, such as phishing scams or fake websites, can help reduce the risk of fraudulent transactions. Creating a customer loyalty program within the payment platform can win customer trust and encourage more successful transactions.

    By implementing these strategies, merchants can vastly reduce the number of “Issuer Declined MCCs” resulting from payment network restrictions, fraud detection tools or bank errors, minimize fees and improve transaction processing rates, which benefits both the merchant and customers.

    STOP ISSUER DECLINED MCC ERRORS TODAY

    Have a High-Risk MCC? We Have a Solution for You.

    MCC codes represent a critical factor in the payment processing landscape, particularly for merchants classified as high-risk. Merchants must understand the significance and implications of MCC coding to minimize their payment processing costs, prevent fraud and chargebacks, and ensure successful transactions.

    We hope this article has given you valuable insight into how MCC codes can affect merchant businesses. If you are a high-risk merchant looking for a safe, secure, and reliable payment processor, opening a high-risk merchant account is your best solution.

    Our experienced team of advisors will be able to assist you in navigating the complexities of payment processing for your business.

    DECLINES SUCK — AVOID THEM WITH A HIGH-RISK MERCHANT ACCOUNT

  • Pick Up Card SF – Meaning and Solution

    Pick Up Card SF – Meaning and Solution

    One of the few things more frustrating than a declined transaction is not fully understanding why that decline happened.

    Credit card decline messages can be a source of confusion and frustration for both merchants and customers alike. They disrupt the smooth flow of transactions and can lead to uncomfortable situations at checkout.

    One such message that often leaves business owners puzzled is the “Pick Up Card” message. A seemingly simple instruction, this decline message can leave you with more questions than answers.

    What exactly does it mean? Why is it appearing now, in the middle of a transaction? And perhaps most importantly, what can you do about it?

    UNDERSTAND YOUR DECLINES

    What does Pick Up Card – SF Decline mean?

    The “Pick Up Card” decline message is a signal from the card issuer asking the merchant to keep the card.

    It would be impossible for online businesses to retain a customer’s card. However, it does indicate that the transaction should not proceed. The message is an alert that there’s an issue with the card, which warrants immediate attention. The cardholder needs to get in touch with their bank or card issuer.

    For reference, “transaction declined pick up card sf” has the card error 04 decline code.

    DECREASE CHECKOUT DECLINES

    Why am I receiving this “Pick Up Card” message on my terminal?

    Here are the top reasons you might be receiving this error code on your terminal:

    Suspected Fraud

    The primary reason you might see this decline message is when the card issuer suspects fraudulent activity. The “Pick Up Card SF” message prevents potential fraud at checkout. It stops transactions in progress if a stolen or lost card has been reported, or if there are suspicious purchasing patterns.

    Issues with the Cardholder’s Account

    Sometimes, this message can appear when there are severe issues with the cardholder’s account. This might include things like default on payments, insufficient funds (including a credit limit), a frozen bank account, an expired card, or account closure.

    Technical Glitches

    While less common, technical errors or problems with data transmission can also trigger a pick up card decline. This could be due to a problem with the credit card network (Visa, Mastercard, American Express), the card issuer’s systems (e.g., connecting to the wrong account number), or even an issue with the card’s magnetic strip or chip.

    It’s important to remember that the specifics behind the “Pick Up Card” message aren’t visible to you. The card issuer does not share detailed information due to privacy and security reasons.

    NEED HELP UNDERSTANDING YOUR DECLINES?

    Impact on Merchants and Customers

    The extent of a “Pick Up Card SF” decline message can vary depending on the situation. Let’s dive deeper into how this decline message affects both you and your customer.

    Disrupted Transactions

    The most immediate impact of a “Pick Up Card” message is the interruption of a card transaction. The halt creates an awkward situation at checkout. Customers become embarrassed and your customer support team can’t define what exactly the problem is.

    Potential Loss of Sales

    When a transaction can’t proceed, there’s an immediate potential for loss of sales, especially if the customer doesn’t have an alternative form of payment. This can be particularly significant for high-ticket items or services.

    Damage to Customer Relationships

    An unexpected decline message can create a negative customer experience, which may damage your relationship with the customer. They may feel embarrassed, frustrated, or even unfairly treated, particularly if they’re unaware of the issue causing the message.

    This may also lead to customers finding another business that doesn’t decline their card.

    Lower Approval Rate

    If fraudsters are using your checkout as a test for stolen cards, the continued denial of these cards will decrease your approval rate. It’s important to have strong fraud prevention measures in place and block repeat payment attempts.

    SET UP FRAUD ALERTS NOW

    What Can Merchants Do About the Pick Up Card Error?

    Here are some practical steps that you can take when encountering a pick up card decline message.

    Immediately Stop the Transaction

    As soon as the “Pick Up Card” message appears, the transaction should be stopped. Don’t allow the card to be tried again.

    Remember, this message is a clear indication from the card issuer that something is amiss. There is a problem with the checking account in some way. It could be as harmless as the cardholder entering the credit card number or CVV incorrectly too many times.

    Either way, the customer’s card cannot be used and should not be tried multiple times.

    Communicate with the Customer

    Inform your customer that there seems to be an issue with their card and that their bank or card issuer has stopped the transaction. Maybe they’re using a new card on a large purchase or their credit/debit card is expired.

    If you have live chat, that makes it easier as you can simply have a popup saying what the issue is and what the next steps are.

    Suggest Alternatives

    Propose other payment methods, such as using another card or PayPal.

    This ensures that you don’t lose out on the transaction and that the customer still gets what they came for with minimal inconvenience. On your store, it’s easy to display a “Sorry, your payment failed. Try another payment method?” pop-up.

    Contact Your Payment Processor

    If you have questions or concerns, get in touch with your payment processor or payment gateway. They can provide you with additional guidance, and in some cases, they might be able to share more details about the decline message on your POS.

    This is particularly useful if you see the pick up card sf decline often for several customers.

    Utilize Fraud Detection Tools

    Modern payment processing systems come with built-in fraud detection. This allows you to:

    1. stop repeat transaction,
    2. block card numbers and networks,
    3. and limit access to your checkout based on the customer’s IP address.

    Use these tools to your advantage to diminish declines and save the sale.

    IMPROVE YOUR CHECKOUT

    Prevention Is Your Best Solution

    Encountering a Pick Up Card decline message can be a stressful experience, but it doesn’t have to be. By understanding what this message means, why it appears, and how to handle it, you can manage these situations confidently and professionally. All in all, this reduces potential disruption and maintains a positive relationship with your customers.

    However, dealing with decline messages is just one piece of the puzzle in managing your merchant services effectively. To truly succeed, you need a robust, flexible, and supportive payment processing solution.

    We specialize in providing high-risk merchant accounts, offering not just state-of-the-art payment processing solutions, but dedicated support and guidance.

    Navigate not just declines, but the many other challenges and opportunities in the payment landscape. Contact us today to learn more about our services and how we can empower your business for success.

    SECURE YOUR BUSINESS WITH DIRECTPAYNET

  • Stripe or National Processing: Which Payment Service Provider Is Best?

    Stripe or National Processing: Which Payment Service Provider Is Best?

    Your payment processor is the backbone of your financial transactions, and it can make or break your customer experience and bottom line. With so many options out there, it can be overwhelming to decide which one is the best fit for your unique needs.

    Two popular payment service providers are often juggled: Stripe and National Processing.

    Both of these companies offer a range of features and benefits that cater to different types of businesses. Both offer flat-rate, near same-day activation. So which is better?

    CONNECT WITH A PROCESSOR THAT SUPPORTS YOUR BUSINESS

    Overview of Stripe

    Stripe Benefits

    One of the biggest benefits of Stripe is its ease of use. The platform is designed with developers in mind, offering a ton of APIs and extensive documentation that make integration a breeze.

    Stripe also allows you to apply and start accepting payments within 24 hours, which is great for those who need processing fast.

    Stripe Pricing

    When it comes to pricing, Stripe keeps things straightforward with a flat-rate model. For most online transactions, you’ll pay 2.9% + 30¢ per charge. There are some not-so hidden fees but no long-term contracts.

    Stripe Payment Methods

    Stripe also supports a wide range of payment methods, so you can cater to customers’ preferences. From credit and debit cards to digital wallets like Apple Pay and Google Pay, Stripe has you covered.

    You can even accept ACH payments and offer “Buy Now, Pay Later” options through Affirm.

    Who Is Stripe For?

    Stripe is a great fit for startups or businesses just opening up that have no processing history. It’s also great for those who need to process credit cards quickly. Whether that means you’re previous solution has fallen through or you simply need to start selling ASAP, Stripe is there for you.

    GET LONG-TERM PAYMENT PROCESSING THAT WON’T DROP YOUR BUSINESS

    Overview of National Processing

    With over 15 years of experience, National Processing built a reputation for providing reliable, transparent payment solutions that can help businesses grow.

    National Processing Benefits

    One of the key benefits of National Processing is their technology on offer. They offer advanced software and hardware that keeps lines moving, shoppers happy, and payments flowing smoothly – even during peak sales times.

    Plus, their platform is versatile enough to meet the needs of businesses across various industries.

    National Processing Pricing

    When it comes to pricing, National Processing keeps things simple and affordable. They charge a flat fee of $9.95 per month, with competitive processing rates starting at 2.5% + 10¢ for in-person transactions and 2.9% + 30¢ for online sales.

    National Processing Payment Methods

    National Processing supports a wide range of payment methods, so you can accept whatever works best for your customers. Whether it’s credit/debit cards, mobile payments, or online transactions, they’ve got you covered.

    They also offer customizable payment options, so you can tailor their solution to fit your specific business needs (for an added cost).

    Who Is National Processing For?

    In my opinion, National Processing is a great fit for brick-and-mortar businesses that want a reliable, affordable payment processing solution.

    If you’re looking for a processor with transparent pricing, advanced technology, and a track record of success, National Processing is definitely worth considering. They’re quickly becoming one of the fastest-growing payment providers out there, and it’s easy to see why.

    NEED POWERFUL ONLINE PROCESSING? WE CAN HELP!

    Head-to-Head Comparison: Stripe vs. National Processing

    Pricing and Fees

    When it comes to pricing, both Stripe and National Processing offer competitive rates. Stripe uses a flat-rate model, charging 2.9% + 30¢ per transaction for online payments and 2.7% + 5¢ for in-person transactions.

    National Processing uses an interchange-plus pricing model, which starts at 2.5% + 10¢ for in-person transactions and 2.9% + 30¢ for online sales.

    While this may seem similar to Stripe’s pricing at first glance, it’s important to note that interchange-plus pricing can be more complex. Both will likely include charges for services you don’t need, however National Processing may be willing to negotiate where Stripe is not.

    Both processors charge a monthly fee – Stripe’s starts at $0 per month, while National Processing charges $9.95 per month. However, it’s worth digging into the fine print to uncover any hidden costs, such as chargeback fees or PCI compliance fees, which can add up over time.

    Payment Methods

    Stripe and National Processing both support a wide range of payment methods, making it easy for businesses to accept payments from customers around the world. Here’s a quick breakdown.

    Stripe supports:

    • Credit and debit cards
    • Digital wallets (Apple Pay, Google Pay, etc.)
    • ACH payments

    Buy Now, Pay Later options (Affirm)

    National Processing supports:

    • Credit and debit cards
    • Digital wallets
    • ACH payments

    Ease of Setup and Integration

    One of the biggest differences between Stripe and National Processing lies in their setup and integration processes. Stripe is known for its developer-friendly APIs and extensive documentation, which make it easy for tech-savvy businesses to integrate the platform into their existing systems.

    This can be a huge advantage for businesses that want to customize their payment experience or build unique features on top of Stripe’s platform.

    National Processing, on the other hand, offers a more simplified application process and dedicated support to help businesses get up and running quickly. While this may be less flexible than Stripe’s approach, it can be a good fit for businesses that want a more hands-off, plug-and-play solution.

    Customer Support and Service

    When it comes to customer support, both Stripe and National Processing offer 24/7 assistance – but with some key differences.

    Stripe provides 24/7 email, chat, and phone support, which can be a lifesaver for businesses that need help outside of regular business hours. However, it’s worth noting that Stripe’s support has been criticized in the past for being slow to respond or unhelpful in cases where accounts are shut down or frozen.

    National Processing, on the other hand, offers 24/7 technical support and additional support during weekday business hours. While this may not be as comprehensive as Stripe’s offering, it can still be a valuable resource for businesses that need help troubleshooting issues or navigating the platform.

    Security and Fraud Prevention

    Finally, let’s talk about security and fraud prevention. Both Stripe and National Processing take these issues seriously and offer a range of tools to help businesses protect themselves and their customers.

    Stripe uses advanced machine learning algorithms to detect and prevent fraudulent transactions in real-time. This is a great advantage, though Stripe is known to be trigger happy and flagging transactions as fraud when they’re not.

    National Processing also offers fraud and chargeback management tools, including customizable filters and alerts that can help businesses stay on top of suspicious activity.

    GET FRAUD ALERTS FOR YOUR BUSINESS TODAY

    When to Use Stripe or National Processing

    Both offer near-instant setups, so if you’re looking to get online quickly then just take your pick. We like having Stripe as a quick and easy backup solution. But because it’s so risk averse, it’s not a good long-term solution for most online businesses.

    National Processing may not offer as much in terms of features, but you likely don’t need all of those features anyway. They’re support is also more reliable and willing to hear your business out if your chargeback ratio gets too high or you start processing over $30k per month (albeit with a pause on your account).

    The Best Solution?

    Both are great backups. If it’s solely for a backup, then go with Stripe as there’s not monthly fee. If you plan to use it semi-regularly, then go with National. But the best solution is not one that will set you up within minutes. It’s one that learns about your business and provides a real merchant account that won’t shut you down.

    Connect with a real payment processor (not a PSP) today. DirectPayNet helps thousands of merchants get the processing power they need to scale.

    SCALE YOUR BUSINESS WITH DIRECTPAYNET