Getting Started with XPressProcessing.com
XPress Processing is a leading provider of Global High Risk Merchants. High Risk Merchants are a specific classification of merchants with a higher risk of customer sales disputes, higher risk of returns and a higher risk of chargebacks. Any online business is considered high risk because the credit card is not present for verification.
High Risk is a banking term and is not necessarily reflective of what is customarily associated with using the term high risk. All internet credit card business is considered “high risk”.
XPress Processing is a merchant facility. A merchant facility is the service for processing credit card payments over the internet, with acquiring banks which is the financial institution that maintains a contractual relationship with the merchant. The credit card issuing bank works with the merchant’s bank to settle all of the transactions.
In Australia, Asia, Africa, Western Europe, Eastern Europe and the Middle East, XPress Processing is authorized to accept and process for credit card business merchants in every country that issues and accepts Visa and MasterCard business; as well as an Interchange Plus acquiring bin partner, which is the domestic and global systems operated by MasterCard and VISA. XPress Processing, owns their own MasterCard and Visa BIN.
Amex and Discover are closed loop cards that “generally” only allow for direct underwriting of business. This means the Banks will directly do the underwriting for our merchant. XPress Processing does however, offer some aggregate BIN’s for Amex and JCB.
Underwriting refers to the process that a large financial service provider (bank, insurer, investment house) uses to assess the eligibility of a customer to receive their products.
BIN is a Bank Identification Number, a unique identification number assigned by Visa to its member financial institutions to identify each institution for acquiring and issuing processes. An ICA aka Interbank Card Association number is issued by Mastercard and serves a similar purpose as a BIN. Generally, an acquiring bank will receive a BIN-ICA but we often refer to this as simply a BIN.
We can ALWAYS refer any business to be underwritten directly by Amex, Discover, JCB, etc. Most card present businesses will be accepted by the closed loop with the exception of adult themed business or liquor stores. “Card Present” refers to a sales transaction that is completed when both, a valid credit card or cardholder are present. This is also known as a face to face transaction.
The Director of Risk at XPress Processing looks at all of the facts and documents and determines if there are any inaccuracies. The Risk department will also double check for errors and make sure the application meets all requirements prior to approving your merchant account.
Most Internet based business will be outright rejected by closed loop cards – i.e., Amex, Discover, JCB, Diners Club, etc.
A tier one bank is usually called social or working capital for Non USA Banks. Generally speaking, all credit card banks working with internet business will require a minimum of $30 million in tier 1 capital, but all of the banks that XPress Processing works with have a minimum capital of $100 million.
The use of the tier 1 bank means a top quality bank and the highest quality available. Examples of a tier 1 bank would be: JP Morgan-Chase, Citibank and Bank of America, respectively.
In the United States, we are a proprietary built PCI DSS Level 1 processor and gateway. The Payment Card Industry aka PCI and Data Security Standard aka DSS, is an information security standard defined by the Payment Card Industry Security Standards Council. PCI certification is required for organizations (merchants and service providers) that process credit card payments. The certification is designed to prevent credit card fraud through increased controls around data and its exposure to compromise.
Payment Gateway: A payment gateway is software that authorizes credit card or electronic check transactions over the internet. Payment Gateways protect credit card and bank details by encrypting sensitive information, such as credit card numbers, to ensure that information is passed securely between the customer and the merchant and also between merchant and the payment processor with direct banking relationships that specialize in the processing of high risk industry merchant transactions.
XPress Processing also provides a full slate of card services as in Global and Domestic Credit Card processing and Managed Banking. Managed Banking provides and maintains a good relationship with the bank, minimizing “Chargebacks and Returned Checks”) In addition, XPress Processing is a multi-phased Payment Gateway. Our processing is not restricted to just the US. XPress Processing is able to process for global merchants and in global currency and supports a variety of payment types outside of credit cards including direct bank transfer, check services (Check21/eCheck Electronic debit of funds from the consumer’s checking account) direct deposit and transfer services in over 23 different European based banks.
We have acquiring partners in Western, Central and Eastern Europe as well as prepaid pin which is a pre-paid debit card that can be used as a form of “cash” to buy products online, and can usually be reloaded. A pin based transaction is when the 4 digit PIN is required to be entered at the point of sale. A non-pin debit card Non Pin-Based Debit (transactions are also called “offline debit”) means the merchant was presented a debit card that has a Visa or MasterCard logo on it and the merchant swiped the card just as they would a credit card and no pin number is entered. The money is withdrawn from the customer’s checking account just as it is with pin-based debit, so the card remains linked to the customer’s checking account no matter how the merchant processes the card issuing.
XPress Processing works with a large number of banks throughout Australia, Asia, Eastern Europe, Western Europe, Africa, the Caribbean, the United States and the Middle East to achieve Credit Card Solutions. Each bank is different and offering varying solutions based on their time in the market and risk appetite. Risk Appetite is the level of risk that an organization is prepared to accept. It is a measurement of the potential benefits and potential threats that may occur if the organization accepts the merchant. Additionally, The ECheck offers cross-border acquiring status and more. Cross-Border Acquirers are banks or organizations that enable you to accept Credit Cards Visa and MasterCard with a single contract whereby the status depends on your location, and the location of the acquiring bank whether they are able to accept you or not.
Cross-Border Acquiring means that the acquirer can accept international credit cards (Visa and MasterCard) for in country (domestic) merchants. A normal card acquirer is an acquirer without a cross-border license that can only accept credit cards issued from a bank inside the same country as the merchant. Please Note: This is an important distinction – especially for internet merchants.
Which bank your merchants are placed at depends on their industry, risk profile and willingness to comply with the approving banks requirements. Below is a brief overview of the types of accounts XPress Processing can offer to give you as a basic knowledge of their respective differences:
Types Of Accounts
XPress Processing offers a wide variety of merchant accounts and managed solutions, suitable for domestic and international processing. Once you have been preapproved for your account you will be advised on the account types available to your business.
3D Secure Solutions
XPress Processing offers both NON 3D and 3D Secure accounts. The below information relates to the 3D secure accounts offered only
3D secure is an account “type” and refers to the way in which transactions are verified and accepted for processing by the acquiring bank. Any account structure can be 3D secure (i.e.: direct MIDs and Aggregates) depending on the stipulation of the bank. 3-D Secure is an XML-based, designed to be an additional security layer for online credit and debit card transactions.
XML aka Extensible Markup Language is a markup language that defines a set of rules for encoding documents in a format that is both human-readable and machine-readable. The design goals of XML emphasize simplicity, generality, and usability over the Internet. It is a textual data format with strong support via Unicode for the languages of the world. Although the design of XML focuses on documents, it is widely used for the representation of arbitrary data structures, for example in web services.
It was developed by Visa with the intention of improving the security of internet payments and offered to customers as the Verified by Visa service. Services based on this protocol have also been adopted by MasterCard, under the name MasterCard SecureCode, and by JCB International as J/Secure. American Express added SafeKey to the UK and Singapore on 8 November 2010. Analysis of the protocol by academia has shown it to have many security issues that affect the consumer, including greater surface area for phishing and a shift of liability in the case of fraudulent payments.
3D solutions utilize Visa’s Verified by Visa and MasterCard’s Secure Code programs. Once a customer enters their payment into a merchant’s website they are automatically transferred to their bank’s verification page to enter their secure code, before being transferred back to the merchant’s website to receive the approved or declined response.
Most 3D secure programs are considered “Soft 3D Programs” which means that if your credit card is not enrolled/part of the Visa/MC security program, it accepts your payment anyway.
Benefit : The benefits of these programs are huge. Visa and MasterCard consider this security measure to be the highest level possible, and as such, it is virtually impossible for a customer to chargeback if they went through the 3D secure payment. In the credit card processing industry, chargebacks are transactions returned through interchange by an issuing bank to an acquiring bank. This is the return of funds to a consumer, forcibly initiated by the issuing bank. A transaction may be returned because of rules and regulations violations. If a sales transaction is disputed by a cardholder or as a result of fraud, then this becomes the largest risk and liability to any processor or gateway. By eliminating this issue, it allows for significant portfolio growth for both providers and merchants without increasing the risk or liability with your portfolio profile.
Considerations : Many merchants prefer non 3D secure processing solutions as they believe it increases their conversion rates. Conversion rate is the proportion of visitors to a website who take action beyond browsing, and make a purchase. The thought process being, that the more steps between product selection and approved transactions, the more likely the customer is to abandon the process. This is the way the industry is going and merchants are beginning to realize it. Merchants are beginning to realize that when they utilize the 3D processing they are making less sales and feel that they are losing profit, because the customer is less likely to complete a purchase when they are taken to a “separate” page when trying to “pay”.
Acceptable Industries : XPress Processing offers premium high-risk processing services to merchants around the world. Unlike other payment processors, XPress Processing takes a unique approach to high-risk merchant boarding. Merchant Boarding is the actual process of approving the merchant, and getting them to begin processing with our system by reviewing each application on a case by case basis to achieve the highest rate of merchant approval for the largest variety of industries.
Information in this summary is subject to change without notice and should not be assumed to be current for all applications at all times. It is understood that approval is subject to full underwriting. Merchant underwriting & approval policy helps control credit risk. The policy is effective in designating and targeting merchants who meet the acquiring banks processing criteria. The policy also acts as a an agreement between the third party billing agent and the acquiring banks as to what information is needed from the merchants to measure the merchant against the acquiring desired list of criteria. The policy also outlines and lists what information is needed from the merchant, for the merchant’s agreement.