Online business may be easy and simple, but when it comes to get your earnings may not be as guaranteed. Simply because most online business entities depend on payment processors. It is imperative that you need to find out how (and if) you will get paid. Firstly, you need to check the business opportunity by checking out reviews of the business and its owners and then check out how they will pay you.
Most online business opportunities rely on third-party payment processors to accept money as well as pay commissions. There are main players when it comes to processing credit and debit card payments, whether online, via phone sales, or even in person.
- Online Business Entity: To accept credit and debit card payments from online customers on the processor. Once the payment is processed, the third-party processor deposits the money in the business entity’s account after transaction fees are taken out.
- Customer: Customer pays for your goods and services via a credit or debit card. The bank that approves the customer for the card is called the issuing bank.
- Payment Gateway- Software that links online business entity site’s shopping cart to the processing network.
- Payment Processor- the main merchant service responsible for moving the transaction through the processing network, sending a billing statement, working with associated banks, etc.
The payment process is performed very quickly, and it may seem easier. Believe it or not, it is very intricate process. There are two stages to payment processing: the authorization (approving the sale) and the settlement (getting the money in your account).
The authorization process goes roughly like this:
- Your customer buys an item on your site with a credit or debit card.
- That information goes through the payment gateway, which encrypts the data to keep it private, and sends it to the payment processor.
- The payment processor sends a request to the customer’s issuing bank asking for the money to pay for your stuff
- The issuer responds with a yes (an approval) or a no (a denial).
- The payment processor sends the answer back to you that the sale was approved and tells your merchant bank to credit your account.
The most common payment processors are- PayPal, Payza, SolidTrustPay, Payoneer, or Stripe, or 2Checkout, or Google Wallet, or ClickBank. These processors charge for all transactions whether accepting payment or withdrawing payments. Often that is overlooked by most online business folks. The transaction fees can be much higher than what banks charge. This expense can’t be ignored when you are getting commissions on your online business programs.
Recently it was announced that Payza, payment processor, is no longer available to USA residents. The US Department of Justice (DOJ) has charged Payza.com with laundering over $250 million connected to criminal ??activities ranging from Ponzi schemes to child pornography?
The charges against Payza co-founders Firoz Patel, 43, and Ferhan Patel, 37, were already filed in November 2016. The Canadian brothers stand accused of operating the cryptocurrency-friendly platform beyond the ??regulatory confines of the United States. ?
They are still in operation in other countries. However, major countries are likely follow the United States.
Without going into details, it is fair to say that Payza is in legal battle. The Payza stance is, “We are currently working on resolving this legal matter in the United States, affecting US Payza members, but cannot give any specific details at this time. Please be aware that this is an accusation and it is NOT evidence of guilt. Right now, we are working on a solution to this and we do not want you to worry.”
What is bottom line, you ask?
No one knows for sure. It is very possible that Payza may resolve their issues return to normal.
Be that as it may, however, your most prudent course of action at this point would be to go to the members area of all programs, products and services of which you are a member and update your subscription payment information AND your commission payment information. Simply change to a NEW payment processor.
It is to be noted that processors having some issues with the government. Online business is practically free for all thus it relies on individual owners to pursue ethical aspects in their business. So, some use online business activities for money laundering around the world. In 2016, PayPal experienced crisis which resulted several business opportunities were forced out of business. It is believed that processors like when they are scrutinized by the government, because the charges are normally associated with business opportunity owners. Thus, processor entity gets to keep the money.
Considering Payza crisis, be sure to work with multiple payment processors if you are the business owner. If you are an affiliate, be sure to check what processors are being used to get your commissions. There are many online opportunities related to crypto currencies promising high returns, so you may want to pursue with extreme caution.
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