High-Risk Payment Processor for direct debit needed

[MasterPP1988]

Hello everyone,

we are looking for a trustworthy payment processor, that can process Direct Debit B2C Customer payments.

The charge back is high, due to trial continuity.

 

[VESTANON]

SEPA direct debit would sure incur chargeback due to biz services offered..

more stable option would be direct card payments processing, consisting Credit/debit card globally as well ability to accept various payments channel ie Google pay etc..moreso factor recurring payments options as an add on.

allowing for automatic renewals for the subscription period as indicated by the client.

 

[MasterPP1988]

SEPA direct debit would sure incur chargeback due to biz services offered..

more stable option would be direct card payments processing, consisting Credit/debit card globally as well ability to accept various payments channel ie Google pay etc..moreso factor recurring payments options as an add on.

allowing for automatic renewals for the subscription period as indicated by the client.

Thanks for you reply. SEPA is required, clients mostly don’t have credit cards.

Why do you see a smaller CB for credit/debit cards?

 

[JohnnyDoe]

Explain the reason for high CB rate. Sounds very much like wire fraud.

 

[MasterPP1988]

Explain the reason for high CB rate. Sounds very much like wire fraud.

Clients get called and sold an subscription. To get a higher closing rate, free trials are being used.
Most of the people forget to cancel subscription before the free trial ends.
Also a small % of the CB‘s comes from not having enough funds at the time of debiting.

 

[DeepDrilling]

There are a lot inside the mentor group resource section which can work for you depending on your business activity
https://www.offshorecorptalk.com/resources/categories/payment-service-provider.4/

 

[MasterPP1988]

There are a lot inside the mentor group resource section which can work for you depending on your business activity
https://www.offshorecorptalk.com/resources/categories/payment-service-provider.4/

Thanks for the reply.

Can you tell me, which one of those is able to use Sepa direct debit?

 

[VESTANON]

inrelation to your current scenario, SEPA direct debit, is quite unpopular highrisk processors adopting such processing channel, would ideally be registered/operational and catering to demographics within the EU/SEPA Area.

probably initiate a research/database of highrisk processors country by country within the Sepa zone and then narrow down to the specific services you currently provide.

Why do you see a smaller CB for credit/debit cards?

Currently capable and competent highrisk processors operate strictly within the 3Ds,securecode,PCI,L1SP modules and integration, which filters out genuine card Bins,restricted bins,Card variants etc at the point of client card payment at checkout cart.

the above parameters allow for only genuine cards(credit/debit) payments and onwards processing of such cards into merchant acct, and then final phase of payout/settlements.

fraudlent,dodgy cards,prepaid card,restricted bins etc would be filtered out at the point of checkout cart, thereby reducing the overall CB ratio based on payments made by cards.

with the above parameters in place, practical cases ie, CB issues would only arise from direct customer complaints, based on non delivery of services,delivery of a non functional item, shipping delays,low quality products/services etc.

rather than reoccuring CB ratios, CB complaints, and processing restrictions based on card payments.

A visit to The MG resources section would be Of Utmost Value, towards guiding as well as directing you towards your precise scenario...

 

[MasterPP1988]

inrelation to your current scenario, SEPA direct debit, is quite unpopular highrisk processors adopting such processing channel, would ideally be registered/operational and catering to demographics with the EU/SEPA.

probably initiate a research/database of highrisk processors country by country within the Sepa zone and then narrow down to the specific services you currently provide.



Currently capable and competent highrisk processors operate strictly within the 3Ds,securecode,PCI,L1SP modules and integration, which filters out genuine card Bins,restricted bins,Card variants etc at the point of client card payment at checkout cart.

the above parameters allow for only genuine cards(credit/debit) payments and onwards processing of such cards into merchant acct, and then final phase of payout/settlements.

fraudlent,dodgy cards,prepaid card,restricted bins etc would be filtered out at the point of checkout cart, thereby reducing the overall CB ratio based on payments made by cards.

with the above parameters in place, practical cases ie, CB issues would only arise from direct customer complaints, based on non delivery of services,delivery of a non functional item, shipping delays,low quality products/services etc.

rather than reoccuring CB ratios, CB complaints, and processing restrictions based on card payments.

Thank you for your detailed reply.

Reason why CC‘s are used only at 20%, is due to the low adaption of CC‘s in Germany in general. Most of clients here don’t have a CC.

I will on the parallel write a few PP‘s in the EU zone, for the SEPA solution.

 

[ActionMan]

Hello, there are a few but they require certain creative measures before applying with them. Rapyd, currency cloud and nuvei works, but they will most likely close your accounts with CB being that high so you have to implement some measures first before applying with them.

 

[mytoofood]

What's the point with direct SEPA to get your money faster?

 

[Sols]

SEPA Direct Debit is madness for this type of business. You'll lose your bank account in no time. If you debit a customer, they have eight weeks during which they can get a no-questions-asked refund. You lose the money and have to fight to get it back.

If you thought credit card chargebacks were bad, just wait until you see SEPA DD in action.

What you may want to look into is some sort of SEPA Instant payment product, where customers wire funds to you. Such payments are much harder to dispute. But you can't do subscriptions on that basis. Each payment has to be initiated.

 

[JohnnyDoe]

Clients get called and sold an subscription. To get a higher closing rate, free trials are being used.
Most of the people forget to cancel subscription before the free trial ends.
Also a small % of the CB‘s comes from not having enough funds at the time of debiting.

let’s call this a boiler room business.
You should use your resources to sell higher ticker products.

 

[MasterPP1988]

Hello, there are a few but they require certain creative measures before applying with them. Rapyd, currency cloud and nuvei works, but they will most likely close your accounts with CB being that high so you have to implement some measures first before applying with them.

Ok. What creative measures do you have in mind?

let’s call this a boiler room business.
You should use your resources to sell higher ticker products.

What’s a boiler room business?

SEPA Direct Debit is madness for this type of business. You'll lose your bank account in no time. If you debit a customer, they have eight weeks during which they can get a no-questions-asked refund. You lose the money and have to fight to get it back.

If you thought credit card chargebacks were bad, just wait until you see SEPA DD in action.

What you may want to look into is some sort of SEPA Instant payment product, where customers wire funds to you. Such payments are much harder to dispute. But you can't do subscriptions on that basis. Each payment has to be initiated.

It’s actually not as bad you think. But yes, with CC you could lower the CB, just by pre-authorization.

As stated above already, Germans havent got adapted CC as in the rest of the world.

 

[JohnnyDoe]

What’s a boiler room business?

https://en.wikipedia.org/wiki/Boiler_room_(business)

 

[MasterPP1988]

https://en.wikipedia.org/wiki/Boiler_room_(business)

Thanks. No it’s a normal business. Just people forget to cancel before the trial is over.

 

[ActionMan]

Ok. What creative measures do you have in mind?

Send me a message, And I can share them with you. I'm not disclosing these methods on a public thread.

 

[JohnnyDoe]

Thanks. No it’s a normal business. Just people forget to cancel before the trial is over.

That’s not normal
I remember an old scam involving cheques and some xxx products, it went on pretty well until it didn’t any longer.

 

[spartin]

Doing 8 figs monthly volume just in Germany? Why not expand to other countries with a higher cc user population?

 

[bigdaddyleon]

Novalnet AG would probably work, but their costs for chargebacks are relatively high.