For processors, the aim is to always move at superfast speeds without exposure to the potential risks more so as regards to paying off agents and ISOs who serve as middlemen. This article narrows down to gauge the possible impact of real-time reporting and human vigilance on a merchant’s portfolios— and in seeing to it that the brokers receive payments on the same day.
Despite the fast speed of web-based commerce, middlemen suffer the most in the payment chain. In fact, they get their commissions from the card processing companies almost 30-45 days following a transaction.
And it gets worse where we have a high-risk merchant account as chargebacks are always looming, and merchants could close down operations without prior notice. Moreover, the 30 – 45-day payment schedule is meant to mitigate the risk of paying commissions on companies that record more chargebacks than valid consumer transactions.
According to Donald Kasdon, the CEO T1 Payments, real-time flow of data, adherence to regulations, and faster reaction among merchant processor companies can help mitigate risk while speeding up the process of paying out commissions to payments per day rather than per month.
On the other hand, same-day disbursement of payments can lead to the inadvertent consequence of being a focus for the wrong businesses types through brokers/agents who may shift more attention to earning per day payments than care about the stability of the business. It is no wonder the Tech team at T1 spent two years engineering a real-time coverage system that monitors businesses, flagging suspicious goings-on and closing down the guilty ones. And because the data is live, “it is easy to spot any abnormal activity ASAP.”
T1 has become the first stops for high-risk business owners, most times, after attempting all other solutions. And the company defines high-risk according … Read More..Read More »