How to Choose an ACH Processing Partner

ACH Payment Partner

Alternative Clearing House, or ACH is a valuable and inexpensive way to process payments for businesses. The right ACH solution will allow your business to easily collect payments from clients on a recurring basis. There is a vast amount of options out there, and it’s important to find a solution that fits the needs of your business.

Since ACH is a commitment to the long-term success of your company, it’s important to find the right fit with options that benefit your business and clients.

Here are 5 Factors to Consider Before Choosing an ACH Partner

Customer Support

One of the most important factors comes down to customer support. Will your partner be there when things go wrong? Customer issues? Chargebacks? Will the customer support be overseas or in the U.S.? These are all questions you should know before you commit to an ACH partner. Knowing all this information will make your decision a lot easier.

Pricing

Pricing is one of the primary deal-breakers when it comes to payment processing. Try to find a company that gives you value for your money, with price cuts based on a certain number of transactions, etc. Processing companies will always have their “pricing”, but this is often negotiable in many cases. Getting the most out of an ACH partner will be receiving value from the service provided. Don’t always decide solely on price, because you still want to receive great support and service as well!

Contract Terms

Contracts tend to get people stuck with a service they might not be satisfied with. Make sure to look at the legal terms or simply ask upfront what they are! Look for a partner who gives great service and noticeable results, this is what keeps people, not a binding agreement.

Quick Implementation

A good ACH system should be fast to setup, and easy to navigate. If you find yourself lost or confused, imagine how worse things will get when you add clients and process more payments? Rule of thumb: if it takes weeks to learn a system, stay away from it!

What are My Options?

The more types of payments your business can accept, the better. Look for options that allow you to process credit cards such as American Express, and one that will allow your business to accept online, mobile, and remote payments. You never want to feel constrained by your payment partner.

If you make sure you keep these things in mind while choosing your ACH processor, you will end up with a company that values your business and will be there every step of the way as a true payment partner. There are a lot of options out there, but with these criteria in mind you will know how to sort from the good and the bad. Being picky is good, and the result will be increased profits and positive results for your business.

Software Payment Integrations: Why They are Important?

Software Integration-min.png

Every software company offers a variety of benefits that they offer clients and businesses. One factor that is often overlooked in this industry are payment integrations.

What are Payment Integrations?

These are payment options software companies give their clients to run payments within their system. At Gulf Management Systems, we partner with many software solutions such as RhinoFit to simplify the payment process for our clients.

What Can We Offer?

Valuable credit card and ACH processing for your clients to effectively run payments through your software. We act as a dedicated partner, and all our clients have a dedicated payment consultant that’s there every step of the way through the on boarding process. Our robust API can plug into software solutions very seamlessly.

Credit Card Processing

Allow clients to process credit card payments conveniently and at a reasonable rate while adding an additional revenue stream for your business. With every software company we work with, there is a great revenue split and benefit for the clients we work with.

ACH Recurring Payments

Allow clients to conveniently process ACH payments through your software. This is our specialty! As a direct ACH processor, all recurring payments go directly though us, which enables us to handle all payment issues.

Why go With Us?

Since 1992 we have helped businesses simplify payment processing. We have a variety of partnerships and options that allow us to offer a custom solution for all of our clients. We specialize in credit card and recurring payments for software clients!

Find Out What GMS Can do for Your Business!

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Overview for Merchants to Avoid Payment Processing Chargebacks

What is a Chargeback, and why did I receive a Chargeback?

Merchant Chargeback

A chargeback is essentially a disputed transaction initiated by the consumer after a product or service has been purchased. The credit card chargeback happens when the customer contacts the card issuer to dispute the charge. Either way, the chargeback process is supposed to protect consumers from unauthorized transactions, however, this system is sometimes abused in what is called chargeback fraud or friendly fraud, where the consumer abuses the system to obtain a refund. At Gulf Management Systems, this is an issue we help our merchants handle all the time.

Chargebacks can be valid for many reasons, but customers can dispute the charges in many situations. For example:

-Fraudulent transactions from Stolen Card/Identity (Most Common)

-Defective Goods

-Did not receive the item ordered

-Felt the product or service was not adequate or was not what was advertised

-Billed incorrectly

-Could not recognize the charge on their credit card statement

Cost of Chargeback’s

Chargeback fees are usually anywhere from $10.00 to $30.00 per chargeback. These fees set and charged from your payment processing company. Not only does a chargeback cost per occurrence, but it will also take some time to respond to the case with all documentation, not too mention the loss of funds pulled from the business bank account.

Chargeback Process

The process of a chargeback is simple and is done after the consumer pays for the product or service.

1. Cardholder disputes the transaction and contacts their card issuer

2. Cardholder’s bank debits the funds out of the merchant account (Chargeback Fee Charged)

3. Chargeback information forwarded to Acquirer (Merchant)

4. Acquirer receives a chargeback, resolves the dispute, or forwards to the merchant

5. The merchant receives the chargeback and accepts or responds to a case and provides evidence to the acquirer

6. Acquirer than forwards evidence of the case to the credit card network

7. Credit card network receives evidence for case forwarding to the card issuer

8. Card issuer receives documentation deciding to reverse the case in the favor of the merchant or the card holder

Chargeback Response Time

In order to respond and challenge the chargeback, the merchant usually has a time limit of 30 days. However, by the time most merchants receive the chargeback letter in the mail they usually have less than a week to respond, not to mention the merchant now must fax information over to the acquirer. Our payment processing reporting will allow merchants to obtain chargebacks in real time, so as soon as the acquirer finds out about the chargeback a push notification is enabled, notifying the merchant right away, and then allows for the merchant to than respond to the case via easy file upload.

4 Tips to Avoid Chargebacks for Merchants

1.       Payment Descriptor

The DBA or billing description name that is displayed on your consumer's billing statement plays a big part in a lot of the chargebacks that take place. If the consumer does not recognize the name associated with a purchase they made, then they are more likely to chargeback the purchase. Please be sure to match up the DBA or billing descriptor to match the storefront name or a name the consumer will recognize. In addition to having that correct information you also have to include the phone number of the business on the billing descriptor to make it easier for consumers to call if any issues arise.

2.       Customer Service

To ensure the least number of chargebacks, simply provide the best customer service and if a customer provides any frustration or dismay, please be sure to get in touch with them as quickly as possible to resolve any issue up front. Any chargeback that comes through Gulf Management Systems, you will have real-time notification’s so you can quickly respond to the case.

3.       Fraud Detection

Understand your customers and collect certain information to prevent a chargeback from happening. If a potential customer sounds suspicious, collect more information than normal.

4.       Authorization Form

Obtain an authorization form signed with correct terminology spelling out what the services or product will provide, return policy, terms of service, etc. This authorization form will help the business provide documentation for the actual purchase, in addition to any other evidence.