Payment Processing

Payment Processing for Debt Collection Merchant Accounts

Are you a debt collection agency worried that traditional merchant accounts won’t accept your high-risk business?

Debt collection companies often face difficulty finding a suitable payment processor due to the high risk associated with their businesses.

Fortunately, payment processing solutions tailored to businesses in the debt collection industry exist. These processors offer high-risk businesses lower rates and more flexible payment plans than traditional merchant accounts.

This article will discuss how debt-collection businesses can safely and securely process payments while protecting their bottom line.

What Is a Collection Agency Merchant Account?

A collection agency merchant account is a specialized form of payment processing for debt collection businesses. It allows these companies to accept customer payments and securely process them into their accounts.

Merchant accounts are essential for any business taking credit cards or e-check payments. However, many traditional banks refuse these services due to the reputational risk associated with collection agency businesses.

Credit card companies are also unwilling to deal with and take on further credit card debt from customers of debt buyers and collectors.

For this reason, it is important to seek out collection agency merchant services with a company that specializes in providing high-risk merchant accounts. These providers have experience dealing with the specific risks associated with debt collection and can offer collection agencies more flexible solutions than traditional banks.

Some of these solutions may even come complete with chargeback protection and fraud prevention tools specifically designed for this industry. This can help ensure customer security while providing peace of mind for collection agencies dealing with a significant amount of the debt.

Types of Merchant Accounts for Debt Collection

Various types of merchant accounts are available for debt collection companies. They include debit cards, credit cards, ACH, and e-Check merchant accounts.

Debit Card Merchant Accounts

A debit card merchant account can make it much easier for your agency to accept such payments on a one-time or recurring basis.

But there’s also a catch—unfortunately, the payment data often changes each year when it comes to debit cards.

Over 20% of all debit cards must be reissued due to expired dates, lost or stolen cards, and data breaches. That means you must collect updated payment information from debtors every time their card is reissued.

Updating the payment information is especially important if you’re using recurring billing. Otherwise, the payments will decline unless the data is accurate and up-to-date.

This waste of time and labor can be avoided with ACH/e-check payments—bank accounts rarely change, eliminating the need to update payment data regularly.

ACH & e-Check Merchant Accounts

ACH and e-check payments allow you to electronically debit funds from debtors’ bank accounts. These payment methods offer less risk than card payments—an important consideration when running a business in the debt collection industry.

These payment methods are more reliable for recurring payments as bank accounts don’t often change.

For instance, people often have direct deposits tied to their accounts and use them for household bills. Or they use their banks for direct salary deposits.

When consumers switch banks, there’s no need to update data. Bank accounts tend to remain the same and stable in the long run. They rarely need to change payment information tied to their bank accounts.

This makes ACH and e-Check Merchant Accounts perfect for recurring payments; it increases cash flow stability and avoids revenue leaks.

Credit Card Merchant Accounts

Getting qualified for a credit card merchant account for debt collection agencies is no easy feat. Most acquiring banks classify debt collection agencies as higher risk due to chargebacks. After all, disputing a credit card transaction is the go-to move for many debtors looking to buy time or default on their payments.

Furthermore, credit card companies are often unwilling to let merchant accounts take on more debt from unpaid balances.

That said, getting approved isn’t the biggest hurdle for this type of account—it’s keeping chargebacks down. And when chargebacks rise too much, it can seriously affect your long-term credit card processing ability.

With credit card merchant accounts, it’s crucial to have chargeback management in place.

Why Are Debt Collectors Labeled High-risk?

Here are reasons why debt collectors are considered high-risk:

Nonpayment/Inconsistent cash flow: If a debt collector fails to collect payments on time (if at all), it can result in significant losses for the company and its business operations.

Chargebacks: Debt collectors have no control over customer disputes or fraud-related incidents that may lead to chargebacks. Card companies can also reject payments based on the amount of risk the debt collector represents. This can result in significant financial losses and damage to the reputation of debt collectors.

Reputational risks: Debt collection businesses are vulnerable to reputational risks due to the nature of their work and their collection efforts with customers. A debt collector seen as having aggressive collection actions or engaging in deceptive practices could lead to consumer complaints and public criticism.

Subscription/Recurring billing: Each month, the debt collectors must ensure that their customer base doesn’t decrease or default on payments. If customers don’t renew contracts or are past due on paying, the debt collection company will suffer significant losses.

How to Apply for a Debt Collection Merchant Account

When applying for a Debt Collection Merchant Account, you will need to provide the following documents to ensure quick approval:

Proof of your business bank account: This must be a bank statement, checkbook, or voided check with your name and address printed on it. This is to ensure that the funds from the processing will be settled into the correct bank account.

Compliant website: Your website should adhere to industry standards set by PCI Security Standards Council and comply with any country-specific regulations that apply to your business.

Processing history: Three months of the most recent processing statements showing customer transactions and payments.

Business financial history: Three months of the most current bank statements showing activity within the business account, such as deposits and withdrawals.

Personal financial history: For businesses owned by one person (sole proprietorship), providing three months of personal bank statements can help speed up the process and avoid delays due to additional verification requirements being needed.

Photo ID: A valid photo ID must be presented for every signer on an application so that we can verify their identity to protect against potential fraud or malicious activities related to our services.

Age of business: The age of your business is also essential for determining if you qualify for an account and how long it will take to get approved. Generally speaking, companies that have been operating within one year are more likely to get approved than those which are new or just starting out in their operations.

Von Payments Is Ready To Help With Debt Collection

As a business owner in a high-risk vertical or industry, you must ensure your debt collection practices are secure and compliant.

That’s where Von Payments comes in. We specialize in helping debt collectors process payments quickly and safely.

We offer numerous features that ensure you follow the credit bureaus‘ regulations while securely managing customer data. Our advanced fraud detection system flags suspicious activity instantly, so your customers’ security is always top of mind.

Von Payments provides end-to-end encryption to guarantee payment information remains safe and secure while offering tokenization technology, making storing customer data easier and more cost-effective under one centralized platform.

At Von Payments, we understand how important it is to have a secure payment processing system when dealing with high-risk industries—which is why we are dedicated to providing the highest level of protection for both customers and businesses.

Contact us today to discover how Von Payments can help you get high-risk merchant accounts!


Payment Processing

A Business Owner’s Guide to Ecommerce Payment Processing

Gone are the days of strictly in-person shopping and swiping cards at physical point-of-sale (POS) systems. 

Are you a business owner struggling to find reliable and secure ecommerce payment processing options? Do you feel frustrated navigating the complex world of financial requirements, compliance, and uncertain costs?

Or maybe you’re overwhelmed by the complexity of e-commerce payment processing regulations and unsure what solutions will work best for your business.

You’re not alone. Many business owners struggle with these same issues.

We’ve created this guide to help small businesses understand ecommerce payment processing so you can find solutions that work for your unique business needs.

In this article, we will dive deep into ecommerce payment processing—how it works and how to choose the best payment solution for you. 

What Is Ecommerce Payment Processing?

Ecommerce payment processing is the process of securely accepting payments from customers online. Businesses can use specialized terminals or ecommerce payment gateways, from credit card payments to online wallets.

Payment processing services streamline ecommerce transactions by connecting customers’ payment details with your business’ bank account, making receiving money in exchange for goods or services much easier and faster.

There are no set-up fees, monthly fees, or long-term contracts like traditional merchant accounts—making it easy for online business owners to get started quickly.

Over 70 percent of ecommerce shoppers abandon shopping carts due to slow or limited payment options. With ecommerce payment processing, businesses can offer customers a wide range of options, including debit cards, credit cards (Visa, Mastercard, American Express), online wallets (Apple Pay, Google Pay), and other digital payment methods (Amazon Pay).

Ecommerce payment processing also adds a layer of security (and complexity) to online transactions since it takes payments through a digital ecommerce platform like Shopify or own ecommerce site.

Transactions are encrypted using secure socket layer (SSL) technology, so personal information is kept safe. And when purchasing online, customers can also use two-factor authentication (2FA) for added peace of mind.

How Does Ecommerce Payment Processing Work?

Here’s how ecommerce payment processing helps business owners provide a smooth checkout experience for online shopping:

  1. You link your ecommerce store with a trusted payment processor.
  2. Customers enter their personal and financial information into a secure form on your website.
  3. Their card details are encrypted and passed to the processor via a secure third-party gateway called a Payment Service Provider (PSP).
  4. The processor requests the consumer’s bank to verify customer identity, whether sufficient funds are available, and whether purchase limits exist.
  5. If everything checks out, the PSP processes the transaction and sends you and your customer confirmation that the purchase was successful. The customer’s account gets deducted.

Make sure that your ecommerce store has all of its security measures and functionalities in place, including SSL certificates, and fraud prevention steps such as data encryption and verification steps at checkout.

Payment Processor

A payment processor facilitates all communication between the customer’s bank or credit card company and the merchant’s account

The payment processor verifies that the customer has sufficient funds before transferring them into the merchant’s account. A payment gateway makes this possible as it securely sends customer information across multiple layers of encryption to protect the customer and merchant from data theft. 

Payment processors also offer features such as fraud detection, dispute management, and compliance solutions, ensuring customers get secure payments every time they shop with you.

Payment Gateway

The payment gateway is an intermediary between your ecommerce store and the payment processor. It securely transfers data between the two entities. 

The payment gateway facilitates authorization or decline information to be sent back to the customer-facing website, allowing customers to check out quickly and securely. 

Payment gateway encrypts sensitive credit card information over an SSL connection—protecting customer data from cybercriminals and malicious actors. 

Ecommerce merchants can choose from various payment gateways depending on their needs. Some of the most popular options are PayPal Payments Pro and Stripe

You may also need to integrate additional features to ensure smooth checkout processes, such as fraud protection tools and loyalty programs.

Merchant Account

This is an account that your online store sets up with a bank so that you can accept digital payments from customers. 

To set up a merchant account, you must partner with a merchant services provider that offers solutions like virtual terminals and digital accounts.

A payment processor and gateway authorize and settle the funds, then deposits them into your merchant account. The funds will transfer to your business bank account in one to two business days. 

Security software then encrypts every transaction to ensure maximum data protection for all parties—merchants, banks, and customers. Banks also use fraud detection services to monitor transactions for potentially fraudulent activity, which helps protect merchants and their customers from unwanted activity. 

Merchant accounts may require additional levels of verification from customers before completing the transaction to ensure all payments being processed are legitimate.

High-Risk Merchant Accounts

High-risk merchants may face more stringent requirements when applying for a merchant account. Businesses in the gaming, entertainment, healthcare, and travel industries are considered high-risk due to their increased propensity for chargebacks, fraudulent transactions, or higher volumes of returns.

As a result, they may be charged higher processing fees than other merchants or need to provide additional documentation to support their application.

High-risk payment processors like Von Payments provide secure platforms to accept payments from shoppers without exposing merchants to financial risk. Von Payments offers various services designed specifically for high-risk merchants looking to improve their chargeback ratio and increase customer satisfaction.

Von Payments’ Chargeback Management enables businesses to address disputes before they become chargebacks with real-time monitoring and alerts. This service also provides helpful data analytics on customer behavior so merchants can identify potential issues before escalating into costly chargebacks.

What is Tokenization?

Tokenization ensures that online payments are secure and efficient for buyers and sellers. It allows businesses to store customers’ sensitive data—such as credit card numbers or bank account details—in an encrypted form. 

With tokenization, businesses don’t have to store payment information in their databases. Instead, they can save an encrypted token pointing to the customer’s details. 

Even when the business suffers a data breach, the stolen information will be useless as it shows no real credit card or bank account numbers.

Tokenization also allows customers to quickly check out without needing to enter their payment information every single time. 

How To Choose the Right Ecommerce Payment Processor

Here are three things you need to consider when choosing the right ecommerce payment processor:


Security is essential in protecting your payment system with an SSL certificate, which encrypts communication and card transactions

You’ll want to ensure that your processor is compliant with the Payment Card Industry Data Security Standard (PCI DSS) and that it follows the regulations set out by credit card companies to ensure your payments are secure. 

Types of Payments Allowed

Select a processor supporting various payment methods like credit and debit cards, PayPal, Google and Apple Pay, Venmo, etc. 

Also, look for processors supporting international currencies, bank accounts, and tax systems in multiple countries. 

Pricing and Fees

When selecting a payment processor, look into the most common fees: 

  • Set-up costs can be free, but the paid ones usually range from $250. Monthly subscription fees cost $10 and $50. 
  • Transaction fees are a percentage of each transaction plus a flat fee, typically no more than 25¢ per transaction. 
  • Some processors may also charge additional fees, such as costs for PCI compliance or additional software integrations. 

Von Payments Is the Answer to Your Ecommerce Business

At Von Payments, we understand how important it is for businesses to have reliable payment solutions that meet their needs. 

Von Payments offers comprehensive ecommerce payment processing solutions, giving you access to various features such as fraud prevention and secure checkout. We also allow customers to pay with multiple currencies and major credit cards, giving them the convenience they demand from an online purchase. 

Von Payments’ simple setup lets you get up and running quickly and easily so you can start accepting payments immediately!

Discover our easy setup process and take advantage of the many benefits of using Von Payments!

Payment Processing

Clover: A POS System That Does It All

Are you in the market for a comprehensive point-of-sale system to organize your invoicing and finances? Perhaps something customizable and used to run your business from anywhere? If so, we’ve got something that might be the perfect fit for your business needs.

Von Payments has partnered with Clover to provide merchants with a customizable POS system that does it all: invoicing, debit and credit card processing, virtual terminals, and more.

This partnership allows businesses like yours to access everything in one convenient platform. The secure payment processing solutions offered by Clover integrate seamlessly with Von Payments, allowing users to monitor their finances from their smartphone or through the app.

Discover how Von Payments and Clover have created a full-service solution to meet merchants’ POS needs and how this platform caters to businesses of all sizes.

What Is a Point-of-Sale System?

A point-of-sale (POS) system is an efficient and cost-effective business management method. It combines hardware and software to process transactions, record sales, and store customer information.

POS systems can accept payments, track inventory, provide real-time analytics, manage employees, and more. They’re relatively easy to set up and use—new users can become quickly familiar with a gentle learning curve.

By automating specific processes associated with daily transaction handling, POS systems help businesses save time and money. They reduce errors in manual data entry and facilitate better inventory management.

The data collected through a POS system gives businesses invaluable insights into customer behavior that can be utilized for marketing strategies, pricing decisions, or product development.

Best of all, POS systems are incredibly versatile. Because they come in different forms ranging from customer-facing, traditional registers with cash drawers and barcode scanners to cloud-based mobile apps, they can fit the needs of any business regardless of size or industry.

Why Clover’s Customizable POS System?

The Clover point-of-sale system is designed to make your life easier. Its easy-to-use interface and cloud-based technology simplify complex tasks, so you’re always in control of your sales, inventory, employee information, and more. All you need is reliable Wi-Fi or mobile data and a smartphone (i.e., Android or iOS.)

Clover‘s merchant account and services provide e-Commerce businesses with the tools they need for growth. With no setup fees and a low monthly fee, Clover‘s PCI-compliant and PTS-certified technology is designed to process payments quickly and securely. 

And with Von Payments, Clover becomes an essential tool for high-risk merchants that need flexible payment processing solutions.

Discover various products by Clover (also available on the Clover app market):

  • Clover Flex is the perfect all-in-one POS system for small businesses. It allows merchants to accept all payment types, gets deposits quickly and easily, and tracks their business in real time. With no monthly fee, Clover Flex is an affordable solution for businesses of any size.
  • Clover Go is a versatile and portable POS solution that makes it easy to serve customers in line or on the go. This powerful tool allows merchants to accept payment cards (both traditional magnetic stripe and EMV credit/debit) and NFC technologies like Apple Pay.
  • The Clover Mini from Fiserv (formerly First Data) is an excellent choice for a simple yet powerful credit card terminal. This compact device accepts all major payment cards (including traditional magnetic stripe and EMV credit/debit cards) and NFC technologies like ApplePay.
  • Clover Station Duo serves as a powerful and flexible payment processor. This two-screen POS system allows merchants to run their business efficiently while allowing customers to initiate payments quickly and securely on either screen.


Clover‘s invoicing solutions make it easy to get paid faster online. Your customers can conveniently pay you online with their credit or debit card. The system can handle all incoming payments, whether in-store orders, mail or telephone orders, or invoices.

Send digital receipts via email, keep tabs on all your transactions from a single dashboard, and streamline the whole process with our point-of-sale system. Of course, the Clover stations have a receipt printer if you and your customers need a hard copy.

You can create professional invoices and email them to your customers with a few clicks (or taps on the touchscreen). You can then keep track of customer information and generate reports.

No need to worry about syncing data or manually entering it into other accounting systems— all data is securely stored within Clover’s cloud platform and updates automatically.

Your customers will also benefit from email invoicing:

  • Easier payments: Clover allows customers to pay their bills quickly and securely with just a few clicks
  • Better recordkeeping: Customers don’t have to waste time trying to locate a lost or misplaced statement—they’re all found in the Clover dashboard
  • Less waste: Paperless billing helps reduce waste, making your business more eco-friendly and attractive to potential customers.

Debit & Credit Card Processing

Make running your business a breeze with Clover devices and payment solutions. Accept debit card and credit card payments on virtually any device—computers, tablets, or smartphones—and send email requests for payments online.

Clover offers small business owners various debit and credit card processing services. It’s designed to make accepting payments easy, with no set-up costs or long-term contracts. And with Von Payments, card processing fees, and transaction fees are friendly to high-risk industries.

Quick service restaurants quickly and securely accept Visa and Mastercard payments through Clover’s Restaurant POS System & Software Solution. Its payment processing feature is integrated directly into Clover’s POS system so restaurants can manage their transactions in one place.

Clover and Von Payments offer customers contactless and mobile payment options such as Apple Pay and Google Pay.

Virtual Terminals

Clover‘s virtual terminals take the stress out of online payments so you can enjoy a simpler, safer way to transact.

Clover‘s Virtual Terminal is a robust and secure payment processing solution that enables businesses to accept credit cards over the phone or by mail. You don’t need special equipment or POS software—it operates entirely through your Clover POS device, allowing you to process payments anywhere.

With a simple login to Clover‘s Web Dashboard, you can issue refunds and accept various payment types like credit cards, debit cards, and ACH in one easy-to-use system—no hardware needed.

Whether on a computer, tablet, or smartphone, you can count on secure, efficient transactions that keep your sales flowing. And with every transaction processed through the Virtual Terminal, you can track sales across various Clover POS devices.

Sales Tracking & Reporting

Clover‘s sales tracking and reporting give you the power to unlock actionable insights from your point-of-sale data. With real-time metrics like customer demographics, purchasing patterns, and average order values, you can better understand how to boost performance and maximize profits.

Get a granular view of your sales data when the POS reports break down the busiest times, best-selling items, and monthly trends for you. With Clover‘s real-time insights, you can accurately and quickly assess your sales data.

Multi-location businesses can also get a comprehensive overview of their combined sales across all stores and online channels.

Grow Your Customer Base

Get to know your customers with Clover Customers. This feature automatically collects customer data like contact info, birthdays, recent orders, workplaces, and more from credit card sales and digital receipts. Every time someone swipes a credit card or opts in for a digital receipt via SMS or email, a customer record is created so you can get the most out of your CRM.

With Clover, you can ensure customer engagement reflects tailored recommendations, personalized promos, and other VIP treatments. Your staff can access their names, transaction histories, and further details such as allergies, birthdays, favorite products, and past purchase history.

If you specialize in pet stores or services, you might even be able to access pet names! All of this comes free and easy with the Clover system.

Employee Management

Clover takes the guesswork out of measuring employee performance. Get detailed reports on top sales and development performers. Easily see who’s up to speed and make sure your team is on the same page.

Show your staff that you appreciate their hard work and dedication with Clover‘s customizable tip screens, tip pooling, gratuity distribution, and revenue sharing. Calculate commissions for individual employees or your team using the Clover app.

Time Clock by Homebase allows you to do it all in one place—schedule, manage, and pay employees, track labor costs, budget accurately, and get a real-time view of each employee’s sales data.

Even More Extras

  • Offer and accept gift cards. Offer branded physical gift cards in just minutes. Customers can choose from over 70 design templates or upload their custom designs. They can make buying and redeeming gift cards easier with digital gift cards, which work on any smart mobile device. Offer discounts to recent purchasers or an incentive for off-peak hours. Encourage customers to sign up for a loyalty club or newsletter by offering exclusive access to new products or a 10% discount code when they enter their email/phone number.

  • Hear feedback directly from your fans. With Clover Feedback, you can hear your customers’ thoughts and directly respond to complaints quickly and easily. Keep negative reviews off the web using this private, one-to-one conversations feature at your point of sale. Get direct customer feedback and ensure your business is going in the right direction.

  • Launch and promote deals and discounts with Clover Promos. With Clover Promos, you can grow your repeat business in no time! Start off with the Audience Builder feature and create and maintain customer contact lists for announcements or promotions. It’s simple to use and comes free with your Clover POS.

  • Use the mobile app to keep your customers engaged, giving them rewards for sharing their first names and allowing them to order in advance and pay automatically—making transactions faster. Reach out and drive more traffic with digital offers, real-time promos, and in-store coupons.

  • Offer discounts to recent purchasers or an incentive for off-peak hours. Encourage customers to sign up for a loyalty club or newsletter by offering exclusive access to new products or a 10% discount code when they enter their email/phone number.

Partner up with Von Payments and Clover

From the introduction of contactless payments to the integration of AI-powered fraud detection systems, payment processing has become increasingly complex and specialized. As a business owner in high-risk verticals or industries, it can be daunting to keep up with these changes.

Luckily, the partnership between Von Payments and Clover has made it easier.

Von Payments is an innovative payment processing solution that provides businesses with a secure platform for accepting payments online. The partnership with Clover makes the process even simpler: the unique POS system stores all your credit card data in one place. It allows you to monitor your invoicing and finances on any browser or smartphone app.

With Clover‘s array of features, including EMV chip readers, contactless NFC transactions, inventory tracking, detailed customer insights, loyalty programs, gift cards, and more, you can create a seamless checkout experience tailored to your needs.

The combined Von Payments and Clover solutions help businesses streamline their operations while keeping them secure against fraud, empowering them to stay competitive in a constantly evolving market.

Discover the powerful combo of POS systempayment processing solutions that does it all.


Payment Processing

What Is Subscription Payment Processing?

Collecting payments for subscription-based services can be a hassle. You need to store customers’ credit or debit card information, manually process monthly payments, and deal with chargebacks and refunds.

It’s hard enough to keep your small business or startup running smoothly without having to worry about payments—you’re busy enough as it is!

Subscription payment processing is the perfect solution to this. It automates the entire payment process, from collecting payment information to issuing refunds.

This article will dive deeper into this type of payment processor, its benefits to your business, how it works, and how a reliable payment processor can streamline recurring payments.

What is Subscription Payment Processing?

Subscription payment processing is a convenient and reliable way for customers to pay for goods and services over time. This payment method allows customers to pay for their purchases in smaller installments instead of one lump sum.

In this model, customers sign up for the service and agree to have their bank account or credit card information stored to facilitate recurring payments. The merchant uses this stored payment information each time a new payment cycle begins.

With subscription payment processing, businesses can collect regular income on an ongoing basis.

Worldwide, subscription-based business models are experiencing significant growth, with an e-commerce market size hitting $97 billion USD in 2022. This figure is expected to reach $904.2 billion by 2026.

Subscription payment processing enables businesses and customers to conveniently manage payments regularly without worrying about missed payments or manually setting up invoices every month.

From automated billing processes that save time on administrative tasks to streamlined payment options that reduce errors, subscription payment processing eliminates friction from financial transactions between buyers and sellers alike.

How Subscription Payment Processing Works 

Subscription payment processing starts when customers sign up for the service or product they wish to purchase. The customer provides their contact and payment details, including their debit or credit card information.

After this step, the customer doesn’t need to enter their personal details again, as the merchant has them saved in the payment system.

The merchant will then use an online payment gateway (such as Stripe or PayPal) to store credit card data securely. The payment gateway ensures that all transactions are encrypted while maintaining compliance with security standards like the Payment Card Industry Data Security Standard (PCI DSS).

When a new payment cycle begins, the merchant’s online payment gateway will automatically pull up the customer’s stored credit card information to make the necessary charge for that cycle.

If the customer wants to make an additional purchase from the same merchant later on, they can do so quickly—their information is automatically available from the merchant’s payment gateway.

Recurring billing works differently based on the type of business. Automatic payments for some businesses are typically billed with the same monthly fees and on the same day each month, i.e., gym membership. Others vary in pricing and dates based on payment plans or how the customer uses the product or service, i.e., household utilities.

Benefits of Subscription Billing

Subscription billing offers many benefits for both merchants and customers. Because it’s largely automated, it streamlines the merchant’s billing operations while maintaining data security.

Subscription billing helps merchants save time and resources since there’s no need for manual intervention during each payment cycle.

Let’s dive deep into the benefits of subscription payment processing:

Predictable Cash Flow

Businesses can ensure they receive consistent revenue with minimal effort. E-commerce businesses typically have inconsistent cash flow, so having subscription billing guarantees a reliable and consistent income for each billing cycle. Recurring payments help businesses better budget for their operations and assess their financial growth.

Streamlined Customer Experience

Subscription billing streamlines the customer experience. Automated payments make it easier for customers to complete their payments without manually entering their billing information for each billing cycle.

Subscription billing also removes the need for manual payment processing, essentially any hassle from customers having to remember when or how much to pay each month. It eliminates potential delays from forgotten or late payments.

With subscription billing, customers can also spread out the cost of their purchases. It minimizes the friction when buyers decide whether to purchase—increasing conversions for your business.

Creating Add-On Subscriptions

Subscription models can build customer loyalty.

There’s something in the ongoing use of your offerings that instills brand advocacy among customers, especially when you consistently provide high quality and maintain high customer satisfaction.

This model helps make upselling or cross-selling of your products or services more accessible—especially when you’ve proven the value of your offerings.

Customers don’t have to do anything else but click the “buy” button at the checkout page. Every payment detail from the first purchase will be used for subsequent ones.

Minimizes Customer Churn

The automated nature of recurring payments means that customers are less likely to forget their subscriptions and are more likely to stay subscribed.

The absence of friction in renewing saves businesses time and resources trying to win back former customers—resulting in higher average customer retention rates over time.

Businesses Who Would Benefit From Subscription Payment Processing

Businesses of all kinds can benefit from having a reliable and secure subscription payment processing service. Recurring payments benefit subscription businesses that offer subscription boxes, replenishment subscriptions, software-as-a-service (SaaS) offerings, content platforms, and professional services.

Subscription Boxes

Subscription boxes are popular among customers who wish to receive packages containing an assortment of items tailored to their preferences.

Subscription boxes are typically based on specific day-to-day activities, interests, and hobbies, such as cooking or fitness. It usually involves the customer receiving meal kits, snacks, beauty products, or wellness items.

Hello Fresh and Usual Wines are examples of subscription boxes.

Replenishment Subscriptions

Replenishment subscriptions offer recurring deliveries of consumable items like pet food, toiletries, cleaning supplies, snacks, and other essential household items. Customers can receive recurring deliveries of consumable items at their convenience, reducing the need to shop continually for replenishments.

Petco, Dollar Shave Club, and Harry’s are examples of companies providing replenishment subscriptions.

Software as a Service (SaaS) 

Software as a Service (SaaS) is an increasingly popular way for businesses to access the latest software solutions without committing to long-term contracts or paying upfront costs.

SaaS products are often subscription-based, allowing customers to receive ongoing access to the service and updates as they become available.

Companies providing SaaS offerings include Salesforce, Dropbox, Zoom, and Slack.

Content Platforms

Content platforms offer subscriptions for access to a range of content, such as videos, music, books, or magazines.

Netflix, Spotify, and Audible are popular content platforms offering subscription services to access their films and TV shows libraries.

Professional Services

Subscription billing can be used by professional service providers like accountants, lawyers, consultants, and freelancers to automate and streamline their operations, such as with billing and invoicing.

Quickbooks and Freshbooks are examples of companies offering professional services subscription billing.

Setting Up Subscription Payment Processing with Von Payments 

Subscription billing is an incredibly powerful tool that can offer many benefits for businesses looking to streamline their payment processing while adding value and convenience for their customers.

Von Payments offers comprehensive payment processing solutions for businesses tailored to the specific needs of high-risk businesses. Our payment solutions include high-risk merchant processing, chargeback management, extensive banking/BIN options, and tailored solutions for clients’ needs.

With fast and easy approvals and no requirement for processing history, we are here to help business owners hit the ground running.

By setting up a subscription management platform with Von Payments, your business can enjoy all the benefits of automated billing with peace of mind knowing their customers’ financial information is safe and secure.

Get in touch today to see how our customer payment and subscription payment processing solutions can help your business.

Payment Processing

What Is A Merchant Service Provider?

A Merchant Service Provider (MSP) is a company that facilitates the processing of payments for businesses. It allows businesses to accept debit and credit cards and other digital payment methods such as ACH, Apple Pay, Google Pay, and PayPal.

Knowing which Merchant Service Provider is right for your business can be tricky. There are a lot of different providers out there, and it can be tough to figure out which best fits.

This article will discuss what a Merchant Service Provider is and its features. We’ll also cover the different types of MSP and how you can choose the best one for your business.

What is a Merchant Service Provider?

A Merchant Service Provider provides an end-to-end suite of services to make accepting various forms of payments easier for business owners. They offer business owners tools and services required to set up merchant accounts, integrate payment gateways, prevent chargeback, and process payments for subscription-based services.

MSPs provide merchants with point-of-sale technology, reporting tools, fraud protection, and chargeback management services.

MSPs come in different models. Independent Sales Organizations (ISOs) and third-party MSPs include PayPal, Square, Stax, and Stripe. Established banks like Bank of America and Wells Fargo also provide merchant services.

Various MSPs are also available depending on a company’s needs and preferences. For example, some MSPs offer interchange-plus pricing while others use flat or tiered pricing models.

Some MSPs specialize in specific industries, such as retail stores or restaurants, while others may offer services tailored specifically for high-risk industries like gaming or travel ticketing companies.

Some providers focus solely on providing software solutions like POS systems, while others offer full-service solutions that include hardware options.

Types of Merchant Service Providers

As businesses become more reliant on digital payments, understanding the different types of Merchant Service Providers is essential for determining which best suits their needs.

Merchant Account Providers

A merchant account provider is a company that allows businesses to accept credit and debit card payments from customers through mobile readers, POS systems, or terminals they provide in exchange for a fee or commission on each transaction processed through the account provider’s services.

These providers offer processing services that integrate with credit card networks such as Visa, American Express, and Mastercard.

Using a merchant account provider can be useful if you do not have access to merchant accounts because you’re considered a high-risk business.

Merchant accounts provided by these entities will usually come with features like payouts within two days, chargeback protection, customer support options, and more – depending on the type of service chosen by the business owner.

Payment Service Providers

Payment service providers allow a business to accept electronic payments without having a designated merchant account. The most common PSPs include Square, PayPal, and Stripe.

PSPs enable small businesses and startups to accept online payments without needing a separate merchant service provider to process debit and credit card payments. These accounts are pooled with multiple merchants, so there is no unique ID number given for each user.

PSPs may offer additional benefits over merchant accounts, such as lower transaction fees, easier integration into existing software solutions handling customer data collection, etc. This makes them an excellent choice for smaller businesses looking to expand their payment options quickly and cost-effectively.    

However, using PSPs comes with higher risk factors as they can freeze or terminate your account without warning upon violating any terms or conditions.

Payment Gateway

A payment gateway provider is necessary if you plan on accepting online credit card payments from customers through your website or mobile app.

Payment gateways provide secure encryption methods which protect both parties from any potential fraudulent activities that could occur during an online transaction.

Many payment gateways also come equipped with features like recurring billing cycles, virtual terminal integration with websites, easier organization of customer records, etc.

Some payment gateways offer you the option of getting a merchant account as part of the package, while others provide gateway-only services.

Features of Merchant Service Providers

Merchant Service Providers offer a range of features that help businesses accept customer payments.

Merchant Account

A merchant account is an essential feature of a merchant service provider as it acts as a middleman between your customers and issuing bank accounts.

When you have established a merchant account, you will receive an ID number which helps protect against fraudulent activities that may occur during debit or credit card transactions. The money from payments made by customers with payment cards is stored in the merchant’s account before they are deposited in your business’ bank account

Merchant accounts are typically created in partnership with an acquiring bank, allowing them to manage all aspects of the payment transaction, including authorization, settlement, and reconciliation.

Credit Card Terminals

A credit card terminal is a device that enables merchants to process payments from customers using their credit cards. They are available in in-person and virtual formats, making them suitable for businesses of all sizes and types.

Physical or in-store terminals can be connected to a merchant’s point-of-sale (POS) system or used as a stand-alone device, while virtual terminals are typically for online stores accessed through a portal or app.

Credit card terminals allow merchants to accept almost any payment, including MasterCard, Visa, American Express, Discover, and more. Depending on the terminal, they can also accommodate contactless payments and those made via smartphones.

Merchant service providers will typically offer physical and virtual terminals and other services, such as secure payment processing systems and fraud prevention measures. This can help businesses reduce the risk of fraud and ensure that all transactions are carried out safely and securely.

Additionally, some providers offer integrated software solutions so merchants can track sales history and manage inventory more efficiently.

Some of the features available with more comprehensive terminals include:

  • Contactless payments (Apple Pay)
  • Security measures like PINs or chip readers
  • Support for different payment methods (cash, check, debit/credit cards)
  • Integration with existing POS
  • Smartphone compatibility (for mobile payments)
  • Record-keeping capabilities that track sales data and customer orders

Point-of-Sale (POS)

Point-of-sale systems are computerized solutions that provide a way to accept customer payments. Typically, POS systems are used in retail settings, including stores and restaurants.

A POS system typically consists of a computer terminal with a screen, a barcode scanner for scanning items, a receipt printer, and sometimes other components such as a credit card reader, swipe machine, or cash drawer. 

POS systems enable merchants to securely authorize customer payments using EMV Chip technology, contactless payment solutions, or magstripe cards. Many POS systems also have the ability to accept digital wallets like Apple Pay and Google Pay, which can help to reduce time spent at checkout and increase sales potential.

Here are some of the things that point-of-sale systems do:

  • Process credit or debit card payments or other forms of customer payments
  • Automate several tasks, i.e. automatically calculating the tax on purchases and tracking inventory levels in real-time
  • Store customer information such as contact details and purchase history, allowing businesses to personalize their services and send targeted promotions or discounts to their customers
  • Allow direct integration with payment processors so payments can be processed quickly and securely without manually inputting card details
  • Generate detailed reports about sales performance and customer behavior

Some POS systems also come with additional features like loyalty programs or gift cards, which help businesses build relationships with their customers over time and increase repeat business.

Additionally, most POS solutions come with advanced analytics and data tracking tools, allowing businesses to understand their customers’ purchasing habits better.

Payment Gateways

Payment gateways connect merchants and banks, enabling secure online payment transactions. They serve as an alternative to a credit card terminal.

By connecting your service provider’s payment networks with your website or e-commerce store, these gateways allow you to accept payments over the internet securely. They encrypt sensitive customer data during transmission so it cannot be read or intercepted by malicious third parties.

Additionally, they can authorize payments instantly and store multiple payment methods on file for recurring billing or subscription-based payment processing.

Payment gateways also provide detailed analytics about each transaction which helps merchants better understand their business performance over time.

You may need to pay a monthly fee for a payment gateway as part of a merchant account or payment service provider’s package—and on top of payment processing fees.

How to Choose the Right Merchant Service Provider 

Choosing the best merchant service provider for your business can be daunting, with several options available. But if you know what to look for, you can ensure you get the best deal and the most reliable service.

Here are a few things to consider when selecting a merchant service provider:

Fees and Pricing

When selecting a merchant service provider, understand precisely what you’ll be paying for each transaction and how that cost is calculated. Depending on the type of business, different payment processing options may be more beneficial than others.

For example, subscription-based businesses may benefit from providers that offer membership fees or interchange plus plans, while small business owners may find flat-rate pricing more cost-effective.

Some merchant service providers offer tiered pricing structures with variable transaction rates based on sales volume.

Additional fees may be added, such as chargeback fees, early termination fees, credit card surcharges, or gateway fees.

Consider the total cost of ownership, including all associated costs such as application or set-up fees. Different payment processors also have varying payout cycles and hold times for funds to become available.

Additional features like fraud protection services can help protect your business from losses due to fraud—but they can come with an additional charge.

To make an informed decision about the most suitable provider for your business, it’s essential to read through the terms and conditions and identify any hidden charges or extra payments for using their services. Seek out customer reviews. Research multiple providers thoroughly to compare the different pricing options.

Ease of Use

Your choice of merchant service provider should be based on how easy it is to use their platform.

Does it have intuitive user interfaces online and via mobile applications? Are customer support services reliable and accessible? Does the provider offer detailed instructions and onboarding for various tools and features?

Make sure that the provider you select offers a streamlined system that employees with minimal technical knowledge can easily navigate. 

The last thing you want is to waste time figuring out how to operate the software. This can lead to delays in processing payments, which affects customer satisfaction and your bottom line. 


Explore all the features offered by different providers before making your final decision. Merchant service providers typically offer various services tailored to different types of businesses. Ensure you find one that offers features specific to your online products or services.

Look for additional features, such as automated payments or recurring billing options, which can help streamline processes further and make things easier for everyone in your organization. 

Choose a merchant service provider that offers an easy-to-use payment gateway or can easily integrate into various gateway options. Streamlining the entire payment process will allow customers to make quick, secure payments without spending time learning how to navigate a complicated payment experience.

Other User Reviews

Take some time to look over customer reviews from past users to get an accurate picture of how reliable they are and what kind of experience other users have had with them. This will give you an idea of whether they’re an ideal fit for your business needs.


Security is always paramount when handling financial transactions online, so your chosen merchant service provider must take appropriate measures to protect customers’ sensitive data. Ensure that the provider uses up-to-date encryption technology and provides safe authentication methods like two-factor authentication.

Seek out providers that have achieved PCI compliance. A reliable merchant service provider should also offer tokenization, fraud prevention, and 3D Secure authentication. 

Von Payments Can Help With Your Merchant Service Needs

A merchant service provider is a company that provides payment processing and related services to merchants. This can include credit card processing, check processing, fraud protection, and other financial services that help businesses accept payments from customers and clients.

For businesses looking for a reliable merchant service provider that can provide innovative solutions tailored specifically to high-risk businesses, Von Payments is a perfect choice. With cutting-edge technology, expert customer support, and professional advice, you can trust Von Payments to keep your business running smoothly without any hassle or worry about payment or fraud.

Get in touch with us today for your merchant service needs.


Payment Processing

Credit Card Processing For High-Risk Companies

High-risk companies have long been frustrated by their inability to access the same credit card processing services as low-risk businesses.

Finding a credit card processing company that understands and works with high-risk businesses can be challenging. 

For high-risk businesses, not having a reliable means to accept credit card payments can mean lost sales and potential customers. They need a high-risk merchant account provider with experience in dealing with them.

This article will dive deep into high-risk credit card processing, choosing a reputable payment processor, and how Von Payments can help you secure credit card processing solutions tailored specifically for a high-risk business.

What is High-Risk Credit Card Processing?

High-risk credit card processing is a type of payment processing that deals specifically with higher-risk businesses.

They may include those in travel, CBD, gaming, adult entertainment, gambling, e-cigarettes and tobacco, multilevel marketing (MLM), and other businesses deemed to have high chargebacks and fraud.

Due to their high-risk category, these types of businesses must often pay more for their credit card processing fees than standard merchants. They may also be subject to longer approval times and additional security checks from traditional payment processors.

What Makes A Business High Risk?

A business may be considered high risk for various reasons:

    • New Merchants – New merchants and startups are often viewed as risky because they lack a track record that would enable the financial institution to assess their potential profitability and sustainability. 
  • High-Risk Industries – Specific industries are deemed high risk due to a history of high chargeback ratio, fraud, or other issues. They may also be considered high-risk due to their association with polarizing activities such as gambling and adult entertainment. Some high-risk verticals include travel, gaming, e-cigarettes, vape and tobacco, CBD, firearms, nutraceuticals and supplements, subscriptions, and trials. 
  • Low Credit Score – Bad credit scores or those in need of credit repair indicate a lack of business experience or a weak financial standing. These factors create a perceived likelihood of defaulting on payments. 
  • High Transaction Volume – Some credit card processors may view high transaction volume as high-risk, as a larger transaction volume may indicate an increased risk of chargebacks or fraud. Businesses with a high volume of payments can also be considered at higher risk because of the sheer number of transactions and costs associated with monitoring them. 
  • International Payments – Banks and payment processors may be wary of accepting payments from customers outside their jurisdiction due to the added complexities and compliance issues of cross-border payment processing. Processing payments from international customers also makes verifying the customer’s identity and contact information more difficult.

How To Choose A Reputable High-Risk Payment Processor

When selecting a payment processor for your business, it’s essential to consider multiple aspects of the service.


Choose an experienced platform with a long processing history working with high-risk merchants. Do they have a robust list of high-risk businesses they have supported through the years? Do they have an excellent track record of offering more competitive rates?

Verify the payment processor’s security measures. Do they offer advanced fraud protection tools, encryption technology, and other security features?

Type of support

Find out what kind of customer support you will receive from the processor. What is its customer service record for queries and disputes? 

Ask about the reliability and availability of their support services. Do they have live chat, 24/7 phone support, or prompt email communication?


Compare fees associated with credit card transactions and other processing costshigh-risk businesses tend to have higher fees. Ensure you’re getting competitive rates for services and solutions.

Research their fee structure and understand how it impacts your profit margins. Do they have a flat fee or interchange plus pricing? Does the platform support multi-currency payments and any other features that could facilitate your operations in the future?

Access to funds

Understand the terms and conditions of when funds will be available. There may be delays for high-risk businesses, so confirm the timeframe for access to your funds in advance.

Reserve requirement

Be sure to confirm the payment processor‘s rolling reserve requirement. Some service providers may require you to maintain a certain amount in your account to protect against chargeback fees or other losses.

Whether the terms of the agreement can change

Enquire whether the terms of the agreement can be changed in the future. This is important, as some payment processors may tighten their restrictions on high-risk businesses over time, and you could be subject to additional fees or reserve requirements. 

Find out if they have early termination fees and how much compared to other high-risk payment processors.

How To Get Credit Card Processing for a High-Risk Business

Once you have chosen the ideal payment provider for your company, it’s time to apply for a merchant account.

The application process requires several business-related documents and tax information to determine whether you are a high-risk or low-risk merchant. These documents must be current and accurate for the approval process to be as quick and easy as possible.

The payment processor might ask for more information, such as evidence of insurance coverage, an explanation of any ongoing legal proceedings connected to earlier processing activities, or a thorough list of the company’s owners and their relationships.

A business strategy or financial forecasts could also be required from high-risk companies.

Once everything has been finalized, you will receive confirmation that your account has been set up successfully and is ready for use.

Your payment processor will provide a secure payment gateway to start processing e-commerce payments via credit card or other payment methods such as PayPal, bank transfers, e-wallets, or card-not-present payments.

When applying for credit card processing—mainly if it is for a high-risk business—conduct due diligence during the application stage so that no unnecessary risks are taken by either party involved in the process.

Von Payments Can Offer Payment Processing For Your High-Risk Businesses

Finding merchant accounts and payment processing services can be difficult for businesses seen as “high-risk” due to their industry, products, or services.

Thankfully, Von Payments offers secure and reliable payment processing solutions and high-risk merchant services to ensure your business needs are met and your e-commerce shop is up and running.

If you’re a business owner looking for an experienced provider of payment processing solutions for your high-risk business, Von Payments’ comprehensive suite of services provides secure payment processing, unrivaled customer service, and technical support.

Contact us today, and let’s start building the perfect payment processing solution for your business!


Payment Processing

Guide to Credit Card Processing for eCommerce

Understanding all the different facets of credit card processing might be challenging, especially if you’re just starting out.

You’re not alone. When selecting a payment gateway and understanding all the various processing fees, many business owners feel overwhelmed.

Even if you’ve been operating your e-commerce company for some time, keeping up with the most recent developments in payment processing is crucial.

A reliable payment partner is essential because fees and rules might change anytime.

This article will cover everything you need to know about processing credit card payments. Dive deep into payment gateways, the common payment processing fees, and how Von Payments can help your e-commerce business succeed.

How Does Credit Card Payment Processing Work?

A good grasp of how credit card payment processing works is essential if you want to accept this form of payment for your e-commerce business. The process of credit card processing companies can seem complicated on the surface, but it doesn’t have to be.

The first step for any e-commerce company is to get a merchant account—a bank account that enables you to accept online payments from customers using their debit or credit cards.

When applying for a merchant account, you must provide information such as the following:

  • Your business name and address
  • What type of goods or services you’re selling
  • Your estimated monthly sales volume
  • Other details like fees, rates, and terms associated with your account

Once approved, the acquiring bank will set up your merchant account—enabling you to authorize, capture and deposit online and mobile payments into your designated bank account. 

This is done by connecting all these components using the right technology, such as payment gateways, virtual terminals, and secure checkout solutions.

When customers enter their payment details at checkout on e-commerce platforms or mobile apps, the data is sent from the gateway or terminal directly to the customer’s issuing bank, where it is checked for authenticity.

The payment processor executes the transaction and transfers funds into your designated bank account.

To ensure that payments are processed quickly and efficiently, merchants must adhere to specific standards such as Payment Card Industry or PCI compliance guidelines. 

These set rules around storing and handling customers’ data and ensure end-to-end encryption throughout the payment process.

Using a Payment Gateway to Help with Credit Card Processing

A payment gateway is an added layer of security and helps merchants process credit card payments efficiently.

The payment gateway serves as an intermediary between the customer and the e-commerce store, ensuring safe and reliable online transactions.

A gateway allows customers to make secure e-commerce payments directly on your online store without being redirected to another page; customers don’t have to leave your site to complete their purchases.

Typically, when a customer wants to purchase something online, the payment gateway verifies their identity and checks if their credit card information is correct. It also collects data from the issuing bank to determine whether the transaction is approved or declined.

Furthermore, it encrypts sensitive data such as credit card numbers and personal information for extra security measures. 

As a result of these highly secure practices, customers can feel safe when making online purchases on websites that use a payment gateway for their transactions.

A payment gateway provides an invaluable asset for online stores by cutting down on fraud risk and increasing consumer confidence in your business.

Common Credit Card Processing Fees

When processing payments with credit cards, there are various fees that businesses should be aware of. These fees can vary depending on the payment processor and the type of services used.

Standard fees for credit card processing include transaction fees, gateway fees, interchange rates, statement fees, and assessment fees. Other less common fees may also include setup fees, termination fees/cancellation fees, etc.

Transaction Fees

Transaction fees are the most common fee associated with credit card processing.

Usually, a flat fee per transaction or interchange plus pricing is applied for each sale processed through the payment processor. This fee covers securely transferring funds from the customer’s bank account to the vendor’s account.

Transaction fees typically range from 0%–5% depending on the processor and services used.

Gateway Fees

Gateway fees are typically charged when using an external payment gateway such as PayPal or Stripe to process payments online.

Gateway fees are usually calculated as a flat monthly rate plus a small percentage per transaction and typically range from 1%–3.5%.

Interchange Rates

Interchange rates refer to what is known as “swipe” or “card-present” transactions and involve customers swiping their cards at point–of–sale terminals (POS).

These are standard payment processing charges assessed by a merchant’s chosen processor whenever they accept payments via debit or credit cards.

Visa, Mastercard, and other credit card companies set interchange fees. They typically range from 1–3.5% of each completed transaction, specifically as follows:

  • Visa: 1.4% to 2.5% for credit cards and .05% for debit cards
  • MasterCard: 1.5% to 2.6% for credit cards and .05% for debit cards
  • American Express: 2.3% to 3.5% for credit cards and .05% for debit cards
  • Discover: 1.55% to 2.5% for credit cards and .05% for debit cards

Statement Fees

Statement Fees are charges that may appear on your monthly statement for each month you accept payments via credit card.

Many credit card processors offer discounts if you sign up for auto-billing or commit to transactions above a certain amount each month. However, some processors may still charge statement fees regardless if these conditions are met.

Statement fees usually range anywhere from $5–$30/month, depending on the services used.

Assessment Fees

Assessment fees refer to extra charges imposed by card issuers that cover costs associated with maintaining fraud prevention systems, processing card networks, etc.

They generally amount to around 0.11%–0.13% per transaction, regardless of whether it was conducted online (card-not-present) or by swiping at POS terminals in-store.

Chargeback Fees

Chargeback fees are another type of fee that businesses may encounter when using a credit card processor. 

This fee is charged to merchants when customers dispute an unauthorized or fraudulent transaction on their statement and request a refund from their credit card issuer.

The chargeback fee covers any associated costs incurred by the merchant’s processor in handling this dispute process and typically ranges from $15-$50, depending on the issuing bank or financial institution. 

Authorization Fees

Authorization fees cover any expenses related to verifying a customer’s identity information when making purchases with credit cards or ACH payments via automated clearing house networks like PayPal or Venmo.

Authorization fees generally range between $0.05–$0.20 per transaction, depending on which service provider is used for authentication purposes.

Some providers charge even higher rates for businesses operating in more high-risk industries, such as gaming or adult entertainment businesses.

Some processors may also assess additional flat-rate authorization fees if specific criteria, like online purchases over a certain value amount, are met by customers making transactions with their cards at point-of-sale locations. 

Subscription Fees

Subscription fees are typically associated with payment gateways or merchant accounts that require a business to sign up for an ongoing subscription agreement to access its services.

Subscription fees vary depending on the service provider, but they usually range from $20–$200 monthly fees depending on features available and the types of transactions being processed.

How Much are Payment Processing Fees?

Depending on the payment processor they choose, e-commerce credit card processing can come with various fees.


Stripe charges a 2.9% + $0.30 fee per successful credit card charge. This fee applies to online and in-person transactions for Visa, Mastercard, American Express, Discover, and other supported payment options.

Stripe also charges a 1.5% fee for international payments such as Google Pay or Apple Pay.


PayPal has similar payment processing fees with a couple of differences. They charge a flat 2.99% + $0.49 fixed fee per successful credit card charge with an additional 1.5% per transaction when using PayPal’s currency conversion service (if applicable).

There may also be other costs when using PayPal’s merchant services, like accepting QR code transactions or Venmo payments.


Square offers a competitive pricing structure with their flat 2.6% + $0.10 fee per successful credit card charge plus an additional 1.5% if you use their instant transfers functionality—allowing merchants to receive funds within minutes instead of days.


Shopify offers tiered pricing models that vary based on what features you need from the platform and what type of product you’re selling (eCommerce store or retail shop).

The basic plan (which is ideal for small businesses or those with low volume sales)  starts at 2.9% + $0.30 fee per successful credit card charge along with an additional 0-2% depending on whether your customers check out through Shopify. 

Payments or another third-party processor such as Stripe or Paypal (note: this does not apply for brick-and-mortar stores).

Higher-tier plans offer lower rates. They go from 0% to 1%, which is better for high-volume e-commerce businesses that process thousands of orders each month and want to save on transaction costs.

Von Payments Can Help With Credit Card Processing for Your e-Commerce Businesses

Credit card processing services include authorizing, clearing, and settling payments, which are all crucial elements of running a successful online business.

If your business needs a reliable way to process credit cards, you should consider partnering with Von Payments for merchant accounts and streamlined payment processing services.

Von Payments offers PCI-compliant payment gateways and uses tokenization technology to ensure secure credit card transactions. Von Payments also provides fraud prevention tools to help protect businesses from unwanted chargebacks or fraudulent activity.

Our payment solutions are designed to be user-friendly, with easy API integrations into existing payment systems so your business can run seamlessly and without extra hidden fees.

With these features in mind, it’s no surprise that many businesses trust Von Payments as their merchant services provider—with reliable credit card processing solutions for eCommerce stores.

Contact us today to learn more.


Payment Processing

The Ins and Outs of Credit Card Processing

What is Credit Card Processing?

Credit card processing is a service through which businesses accept payments from their customers through credit cards.

27% of transactions in e-commerce and in-person checkout in retail are completed via credit card payments, making it one of the most popular payment methods.

Credit card payments are a preferred contactless payment method as they enable consumers to get the most out of their bank accounts via reward points, cashback, etc.

In this article, you’ll learn how these payments work, the various fees involved in a transaction, credit card processing pricing, and how you should pick the right credit card processing and point-of-sale (POS) system.

How Does Credit Card Processing Work?

Credit card transactions between the cardholder and businesses contain the following moving parts:

  • Consumer: The cardholder or the customer
  • Merchant: The business owners
  • Payment Gateway: The mechanism which authorizes the checkout transaction during credit card processing
  • Credit Card Processor: The virtual terminal, credit card reader, or payment processor which is the medium between the consumer and the merchant
  • Card Network: It is a system that enables and facilitates credit card payments during e-commerce transactions
  • Issuing Bank: The bank of the cardholder
  • Acquiring Bank: The bank with the merchant account

The credit card payment processing is shown in the image below:


Before choosing a credit card processing company, let’s understand the transaction fees during the payment processing of credit cards.

Pricing for Credit Card Processing

Credit card processing fees should be taken into consideration before choosing a credit card processing company. These are added to the bill during invoicing and are popularly known as “hidden fees”. Below are the most common types of such fees:

  • Interchange fee: Also known as interchange-plus pricing, these make up most of the transaction fees. This fee is paid between banks to process payments. In the US, the interchange fees are about 2% of the total transaction amount.
  • Service fee: This is charged by the business and covers customer support, transactions, and business development. The service fees charged depend on the business or service provider and the industry.
  • Processing fee: It is charged by your bank for the privilege of using credit cards. Companies charge a flat rate per transaction, but it usually varies.
  • PCI compliance fee: It is charged by your payment processor or virtual terminal to ensure the merchant is compliant with the PCI DSS standards.
  • Chargeback fee: This credit card processing fee is charged by the bank from the merchant account while reimbursing the customer for a fraudulent transaction. Merchants can also dispute a chargeback fee which ensures small businesses aren’t taken advantage of.


The inclusion of all the above kinds of fees in the credit card pricing model decreases the profit of the merchant. As a result, small business owners prefer to offer and promote cash payment, or by passing on the processing fee to customers in exchange for their merchant services.

Choosing a Credit Card Processing Company

Credit card processors receive and validate the cardholder’s information and the transaction details to ensure the credit card transactions are secure. These processors accept the details through the virtual terminal and relay them to credit card net card networks for payment processing.

They protect the data of the consumer and transfer the accurate amount to the merchant bank.

Credit card processing companies, like MasterCard and Visa, build devices and systems to facilitate these processing services. 

Choosing the right company will have the following benefits:

  1. Fraud protection and security: As a business owner, it is not just your responsibility to accept payments from verified sources, but also to protect your customers from financial fraud. A good payment processor will send funds to your merchant account while decreasing the risk associated with these transactions.
  2. Merchant services: This is about the convenience offered by their solution. For instance, the payment processing solution should allow you to offer multiple payment options to your consumers including debit cards, in-person cash payments, and mobile payments. Another factor you should consider is hidden fees and monthly fees.
  3. Customer support: Small businesses, for example, can find it difficult to rely on credit card processors that take a few business days to get their tickets resolved. They need cash as soon as possible to repay the overhead costs. A credit card processing company should ensure smooth cash flow through your business as per your pricing model.

Von Payments, one of the best credit card processing companies, provides all of the above to startups and established businesses across a wide range of industries.

We provide credit card transaction processing services to every business from low to high-risk non-traditional verticals. With Von Payments, you can accept payments from your customers via mobile wallets, Google Pay, Apple Pay, debit cards, credit cards, and more. You can accept credit card payments from leading providers such as Visa, MasterCard, American Express, etc. Any and all processing fees would be passed on to the customer, which is a strong benefit for merchants.

Furthermore, we will assist you through every step to give you the best merchant services by assigning a dedicated account manager.

Finding the Right Point-of-Sale (POS) System

A point-of-sale system (POS system) refers to the hardware and software that accepts payments from your customers during shopping cart checkout. A common example is the cash register. However, the POS system has come a long way since.


Keep the following points in mind while choosing a POS system:

  1. Customer experience: It should manage and store customers’ data securely and incur minimal transaction fees. They should also be allowed to make online payments and make payments through third-party portals like Stripe.
  2. Adaptability: If you are accepting payments through certain means, your point-of-sale system should incorporate that seamlessly. You shouldn’t have to change how you interact with your consumers to make a payment service system work even if you are a non-traditional, high-risk business.
  3. Scalability: Your POS system should be able to address the growing needs of your business. For instance, introducing a mobile device to improve the in-store experience for your customers should be easy.
  4. Affordable: Interchange-plus pricing, monthly subscription processing fees, and taxes per transaction make many POS systems an unfriendly option for low and high-risk businesses alike. Make sure the pricing model of the POS system doesn’t drain your revenue significantly.

Now that you know what you should look for in a credit card processing company and POS system for your business, it is time to choose the right one.

Choose Von Payments for Zero Fee Payment Processing

Credit card payments are a popular method of completing e-commerce and retail transactions. The payments are authenticated through credit card networks which charge interchange fees and taxes to transfer the funds. However, these extra fees can make them undesirable for your business.

This is where you must choose the best credit card processing company which is secure, adaptive, transparent, easy to use, and scalable as per your needs.

Von Payments’ zero-fee processing platform maximizes your bottom line by passing off transaction fees incurred in processing credit cards to your customers.

Your customers can either pay by cash, which will be at a discounted rate, or by credit card where the customer has to pay the convenience fees.

Our platform is secure, takes minutes to set up and run, adaptive, scalable, and compliant with all the latest regulations in all 50 states.

Contact us today and we will get you started in no time.