Financial process and technology that will eliminate the problems or fear of charge-backs for merchants and the harm they cause in reference to the extent that if they have a chargeback from a consumer, it will automatically be covered with a small cash advance and is automatically paid back with a credit card split. An unexpected charge-back could cause a merchant to go out of business with their merchant account getting terminated or just plain put them in a bad spot by suddenly having unexpected monies being withdrawn from their bank account or transactions being held up by the processor used to pay the chargeback back.
With more and more fraud today it's becoming a major problem, and this solves it for the merchant and the processor, so it does not hurt either of them. Without the protection the processor could be left holding the bag and covering it and also end up losing the merchant and cash flow each month. It's a win-win for the merchant and the processor both. There are absolutely no monthly fees or any fees whatsoever for this protection unless you have to use it. It's free insurance that gives you an automatic approval and implements a cash advance if you incur a chargeback.
Speedy's charge-back protection will trigger a small cash advance to cover the fees and will automatically cover the fees for the merchant without having to be approved for an advance or loan. The cost of the advance is a 1.25 factor. The merchant will also be given the choice to be underwritten for a larger loan or merchant cash advance if they would like a larger loan or advance but it is not required and is subject to approval.
When a merchant processes credit cards they normally have fees taken out at the beginning of the month for the previous month's processing (unless they use a company like Speedy).
If the merchant does not have enough funds in their bank account to cover the fees that are automatically withdrawn the merchants fees will bounce and the processor will hold all transactions or possibly freeze the merchant's account if not collected which could lead to loss of their merchant account and being put in a file for terminated merchants called the "match file". Once in this file it is almost impossible to obtain a merchant account and if you are able to there will be a large reserve account required with funds from each transaction being held for up to 6 months.
Speedy's overdraft protection will trigger a small cash advance to cover the fees and will automatically cover the fees for the merchant without having to be approved for an advance or loan. The advance will be paid back by withholding a small percentage of future transactions until the small advance is paid back in full. The cost of the advance is a 1.25 factor. The merchant will also be given the choice to be underwritten for a larger loan or merchant cash advance if they would like a larger loan or advance due to having cash flow issues but it is not required and is subject to approval.