How do I find out acquiring bank/merchant account provider

[sach_nyc]

How do I find out acquiring bank/merchant account provider for any merchant?

I have a online business (tech support) with higher charge-back ratio around 3-4%. Our acquiring bank is not happy with us. We have few competitors who provide bad service and have charge-back ratio of 5-7% but they are going strong for years without trouble. So, I need to find out acquiring bank of our competitors so that we can get account there.

[Kendo]

It may only be your policy that differs. If you leave yourself open for charge backs you will attract them. For some shoppers it is a means of getting value for nothing.

[lucy24]

I think the underlying question is: How can I find out where my competitors are banking, because their banks seem to be more tolerant of annoyances.

Then again, it may turn out that your unattractive competitors are paying higher banking fees. Six of one, half a dozen of the other.

[not2easy]

After "x" number of chargebacks most merchant accounts will either close your account or increase your fees. There are high risk transactions that cost more to process so there are merchant accounts that specialize in those accounts and charge higher fees to accommodate their extra risk.

If the bank absorbs your customer satisfaction issues, they'll want more for each transaction. If you shape your policies to deal with the nature of your business there can be fewer chargebacks. Sometimes policy changes can protect you better as a merchant, but they need to be reasonable, understandable and agreed to before the transaction. If you charge a portion of your fees to diagnose a problem and a separate fee to correct the problem (for example) there could be fewer chargebacks. It can help to look for the cause of chargebacks and try to reduce or eliminate them. If that can't happen you should expect to pay higher fees per transaction.

[Planet13]

Shop around.

I get about three unsolicited calls per day from cc processing companies asking us to switch to them. (We have three retail locations as well as sell online.)

There's a bazillion out there. So just shop around.

[onlinesource]

You won't have any problem getting offers to switch processors. Companies that handle merchant processing accounts will call you and suggest their services day and night, but it's like getting a letter in the mail saying you've been pre-approved for a credit card! You haven't really been approved for squat! haha It's just an opportunity for the bank to gauge your interest before putting you through the ringer and letting you know whether you're in or have been kicked to the curb. I've had so many stupid processors tell me that it's a "done deal" and all that I need to do is "sign on the dotted line" and somehow someway, it all falls apart in the end. I know a lot of it is just talk.

As far as your current situation goes, your competitors may be in good standing because they've been around longer and do a higher volume. I have a hard time believing they have a 5 to 7% charge back ratio, considering most banks I've worked with go crazy when you get above 1%. I had site that did roughly $120K a month and when that was happening, our charge backs got just under 4% before the bank stated to give us a hard time about it. Eventually we lost the account and it took me a good year to find a replacement because of our past.

We have made some changes to prevent the collapse from happening again, but nothing is foolproof. My suggestion, going forward would be encourage customers to contact you with any complaints, so you could prevent a future charge back. I was always under the impression that when customers called their banks to dispute a charge, the bank usually asks the company to call the merchant first for resolution. Not sure if that always happens and/or how often customers lie about already reaching out to the merchant! I can think of many occasions when a customer told the bank they tried to reach us, but I had no form of contact. The customer had good standing with their bank, so there was no way they'd side with me... especially being a new merchant.

The bottom line is, you can't prevent charge backs if the customer really wants their money back. At the end of the day, eCommerce sales have a lot of problems because they can't be controlled and monitored as well as sales taken place at brick and mortar stores. All you can do is, stay in touch with your clients and encourage them to contact you if they are unhappy. If they do complain, don't argue it, just refund them. The more that you try to argue, the more problems with arise, especially if your in a business that poses a higher rise for charge backs regardless.

[LifeinAsia]

How do I find out acquiring bank/merchant account provider for any merchant?

Short of asking your competitors, I don't know of any way.

Even if you bought something from your competitor, issues a chargeback, and asked your bank for the details, I'm not sure they would or even could give you information about the merchant account. My guess is that your bank would only know the parent cc company (e.g., Visa, MC, AMEX).

I suppose a determined person could try suing over a transaction and ask for the merchant account provider through discovery. But it sounds like a very expensive proposition.

[sach_nyc]

Thanks for all answers and suggestions. Looks like no easy way to find out acquiring bank for any merchant. we are working to reduce chargeback ratio