Looking At MO/TO Merchant Accounts

MO/TO merchant accounts have become a solution to businesses that conduct the majority of their sales through the mail or over the phone, as the virtual terminal allows credit card information to be processed without the need to swipe the card in person. However, you will find risks associated with conducting sales without the presenter of the card being present, one of the largest being the potential for charge backs that can cost a business in both money and reputation. The benefits often outweigh the risks, however, and a reputable merchant account provider like  MO/TO merchant accounts in Canada can assist businesses in getting a merchant account. Know more by clicking here.


What Are MO/TO Accounts?

MO/TO merchant accounts are those mail order and telephone orders that happen in many businesses today. With a MO/TO merchant account, the business can manually enter the credit card information into an online terminal connected to the Internet.  This adds convenience and raises the potential customer base, there are a variety of risks involved when the customer isn't present, which include the inability to visually verify the identity of the cardholder.


Why Are Charge backs Considered High Risk?

The largest concern with using MO/TO merchant accounts, in most cases, is charge backs. There is the potential for cardholders to demand a reversal of charges from their credit card company. In some industries, charge back activity can be high. The reasons for the charge back requests can include everything from fraudulent charges to buyers remorse, but the cost to the business is more than the refund of the sale price. Businesses may also be fined by the bank that issued the credit card, and may lose future sales due to the loss in reputation that comes from dissatisfied customers. Additional data about merchant account can be reviewed on the site of ehow.


High Risk Merchant Accounts For High Risk Businesses

On the positive side, High Risk Merchant Accounts are designed especially for businesses that may face a very high rate of charge back requests, and includes businesses such as:

· Subscription and membership services
· Ticket sales
· Dating services
· Computer services
· Insurance products and sales
· Investment products
· Travel companies
· Dating services

High Risk Merchant Accounts offer automatic payment processing and fraud prevention services. But unlike the lower risk MO/TO Merchant Accounts, there is a higher fee to pay for this risk. Because charge backs can be costly, higher monthly and transaction fees are generally applied, and a security deposit may be required to cover the cost of any charge back that happens. High Risk accounts may also limit the volume of transactions that can be processed, which can potentially lower the number of customers able to patronize a particular business.

 Credit card payments are automatically processed by way of a web-based virtual terminal, which can be accessed from any computer with an Internet connection. Even though the inability to visually verify the identity of the cardholder is an issue with one of these accounts, it the potential of charge backs that makes many MO/TO accounts high risk. Selecting a reputable merchant account provider can certainly help reduce the risks of fraud and charge backs, however, and trained personnel can assist with getting the account installed and operating smoothly with very little hassle. MO/TO Merchant Accounts makes it easy to offer service to customers around the world, making them one of the greatest investments a company can make.