Why Is SSL Necessary For Credit Card Processing?

Secure Sockets Layer, or SSL processing, is a technology that is used to encrypt and authenticate sensitive and private data, most commonly associated with credit card processing. Most vendors who have a merchant account online and are providing any sort of retail service on the internet know something about the importance of using SSL to process their credit cards, whether they are dealing with visa processing or mastercard processing. Because of the amount of identity theft and fraud that occurs in our current times, it's more than necessary to have a way to protect private and sensitive information when it is input onto the internet. In fact, most people won't put their information on a site that doesn't involve some sort of SSL processing or other encryption option.

Merchants, and those who provide merchant services, need to provide an SSL certificate on their website if they are going to deal with personal information from their customers. This not just important towards the use of financial information, but also information such as addresses, birthdates, social security numbers, and other types of information that make an individual personally identifiable. SSL certificates help by containing the information and ensuring that it only goes to the directed target. As a result, this encryption method prevents possible thieves from intercepting the information with their technology.

How does it work? If a website has an SSL certificate installed, the processing will begin any time an individual starts accessing secure pages. Secure pages are those sites with "https" listed in the beginning of the URL. The site will produce a type of key that will validate their identity and the company's information. Meanwhile, the browser of the individual on the website will produce a unique key for the session, whether something is being ordered or private information is being input into a form. This session key encrypts anything that is being sent to and from the site and the individual's browser during that time. The result is that the information is secure and protected. Commonly, if a website does not offer SSL, a pop-up notification will appear on the browser prior to information being submitted, and will let the individual know that they are browsing on a page that does not incorporate this certificate.

SSL certificates also help to authenticate the websites and vendors that are using them. For credit card processing, this is just as important as encrypting private information. Since individuals are sending private information, they want to ensure that it is only going to the vendor or individuals that they are intending it for. Having SSL certificates on your website helps to authenticate that you are indeed that specific merchant or company, and that the individual can trust their data connection with you on the internet.

Important Information About High Risk Merchant Accounts

The average business can complete an application for a regular merchant account, but there are a few companies that cannot be approved. A business that cannot get a normal account might find that a high risk merchant account is most likely the right choice. Understanding the reasons why a business would like to apply for these merchant services takes an understanding of the benefits that exist.

Why Your Business May Want a High Risk Merchant Account

There are various reasons why these accounts may be helpful. The ease of credit card processing is a standard for a lot of businesses and the money received is transferred quickly after a sale is made. Possessing a business that is classified as a high risk operation needs better approval rates. Attempting to get approved for a standard account is difficult to do and this is one of the main reasons that a company can usually benefit from trying to get a high risk account. A business can sign up without hassle and receive an approval instantly.

Types of Businesses Needing a High Risk Merchant Account

A business can be classified as high risk as a result of several factors. Any business that has a high turnover rate of employees or that sells products or content that may be classified as high risk. A company that is in an industry where fraud is likely will typically be put into the category of high risk for Visa processing and Mastercard processing.

These are generally examples of businesses that are classified as high risk:

• Adult Entertainment Companies
• Cigarette Vendors Online
• Sales of Telecommunications Products
• Website Hosting and ISP Companies
• Telemarketing Businesses
• Male/Female Escort Companies
• Insurance Sales
• Detective and Research Services
• Collections
• Mobile phone Sellers and Distributors
• E-Cash Funding Services
• Software Companies Selling Downloads
• Check Cash and Payday Companies

There are many more businesses that are viewed as riskier when applying for merchant services. This shortened list is used as being a general guide for a merchant looking to submit an application for a high risk merchant account to have an understanding of what to anticipate in comparison of other companies.

Choosing a reliable and reputable company when trying to get credit card processing is important. Using a company that has a history of success and reliability will keep a merchant from losing money or having illegal activity performed with their account. Performing an in-depth search online will help a business owner when searching for a dependable processing company. Reading reviews posted by current merchants and asking questions to other colleagues will help provide excellent information regarding the best merchant services. Working with a trusted company for charge card processing allows a business to get reliable Visa processing and Mastercard processing services. Once the right system is set up, businesses will operate smoothly and funds from sales and services is going to be easy to collect.

Merchant Cash Advance: Key Considerations

A merchant cash advance is a option for small business owners to get quick financial capital. Generally, a merchant services provider loans the company money based upon expected sales receipts. This company repays the cash advance from day-to-day charge card sales. Small business owners with seasonal sales tend to make use of this type of financial service. In some instances, a merchant cash advance is approved within 10 business days. Traditional business financing could take more time and have more restrictions.

How Small Businesses Benefit from a Merchant Cash Advance

There are a variety of benefits to getting a merchant cash advance. Businesses are in a position to:

• Fill inventory
• Take advantage of expansion opportunities
• Balance financial statements with positive working capital
• Increase cash flow


Repayments Through Credit Card Processing

Providers that provide this sort of cash advance service don't receive fixed, monthly payments. As an alternative, when the business uses Visa processing and MasterCard processing services for customer purchases, cash advance payments are subtracted. A part of daily sales go towards repaying the cash advance until it's paid in full. Payments are adjusted for slower sales days, according to the business’ cash flow intake on a daily basis. There is no set repayment schedule of fixed rates and payment dates.

Businesses Most Likely to Use a Merchant Cash Advance

Various industries make up the types of small businesses most likely to use merchant cash advance services. A number of these include:

• Florist shops
• Doctor and dental offices
• Restaurants
• Nightclubs
• Retail stores• Auto repair shops
• Nail salons


How a Merchant Cash Advance Is Different from a Business Loan

Individual business needs may determine whether a small business loan or a merchant cash advance is better. Proprietors should weigh the benefits of each against businesses needs to make the right decision. Generally, premiums are higher for a merchant cash advance than with a business loan. Quite a few businesses have difficulty repaying a loan when sales drop. However, a cash advance is beneficial for meeting long-term business goals. Premiums are based on:

• working capital
• cash flow projections
• overall business portfolio

Highlights of a Merchant Cash Advance

Merchant cash advances are attractive to small business owners for a number of reasons, including:

• Quick approval - does not require a lien or collateral as with conventional small business loans.
• Easy access to working capital - can make required purchases right now based on future sales projections.
• Flexible repayment schedule - provider gets a portion of future charge card sales as repayment for the cash advance.

Some business owners with low credit ratings might not quality for a traditional loan. With the help of a reputable merchant account provider, small business owners can receive much needed capital.