First, let’s define factoring. Factoring is the act of accepting credit card payments on behalf of another business/organization. For example – let’s say you own a bakery, accepting payments for cookies, cakes, etc. Let’s also pretend that you start a side-business selling car parts on the internet. If you were to start taking payments for [...]
Dharma can work with many different types of merchants, but we don’t process for high-risk industries. A high-risk industry is defined as an industry that historically deals with more chargebacks, fraud, business closures, and federal regulation issues. As such, a different type of processing bank specializes in these types of accounts. Because [...]
What is Future Delivery?You may be wondering, “why is an annual membership risky?” – great question! First, let’s define a term that we can use throughout this discussion. Whenever you (the merchant) sell a good/service that you haven’t delivered yet, then you are engaging in future delivery. Just like it sounds, future delivery [...]
A reserve is a risk-mitigation tool that helps processors and merchants ensure that there funds available to cover unforeseen losses. When accepting credit cards, there are certain risk factors that increase a merchant’s probability to incur disputes/chargebacks, fraud, or business closure. For these scenarios, it’s helpful for the Merchant Service [...]