Is the discount rate for retail sales the same for mail order/telephone sales or Internet sales?
No. Telephone and mail order sales, and especially Internet sales, are riskier because the customer and credit card are not in merchant’s presence at the time of the sale. In the case of retail sales a signature is required from the consumer at the time of sale, the merchant can see the credit card and a photo ID, and the customer usually receives the product or service at that time. When you see low rates advertised, it is usually for face-to-face retail sales. Telephone, mail order, and Internet sales are charged a higher discount rate because of the increased risk associated with this type of business transaction. If a card is not present at the time of the sale, the likelihood of a fraudulent transaction not being detected increases. When deciding to process such transactions, make certain that you choose an acquirer that has solid experience in setting up and managing such merchant accounts. United Payment Solutions has extensive experience in this area.
Related Questions
- I already have a retail Merchant account. Do I need another Merchant account to conduct Internet and/or Mail Order/Telephone Order transactions?
- Is the discount rate for retail sales the same for mail order/telephone sales or Internet sales?
- Why are rates higher on transactions for Internet, Mail and Telephone Order sales?
