You do your transactions over the internet, but never really think about how it’s done. In fact, most people assume it’s all internal (i.e. that the company itself does the process).
On the contrary, this is all mostly done through an Internet Payment Service Provider (IPSP).
The larger the kinds and volume of transactions (otherwise known as high-risk transactions) the more such companies are needed in order to avoid theft and fraud.
Credit card, debit card, and other electronic payment transactions for merchants should ideally be done through such channels. One of the oldest and most prominent is Verotel.
The Cornerstone of Verotel
During the early days of the “World Wide Web”, Verotel was able to position itself as a leading Internet Payment Company that has been enabling webmasters to build and process high-risk transactions for their online companies since 1998.
Verotel understands the potential risks involved with offering digital content along with other online services and offers a PCI compliant solution. As part of this, Verotel uses Remote User Management (RUM) software which generates randomized usernames and passwords for the company’s customer clientele.
Like any registered member company for Visa, MasterCard, Uncover and Diners Club, Verotel allows businesses to start accepting global payments simply with a couple of clicks.
The advent of the internet has made it possible to do pretty much any financial transaction online, whether through a computer or through available mobile apps.
Verotel services are offered worldwide. The Verotel central company headquarters resides in Amsterdam. Despite this, they offer free worldwide sales, after-sales, and technical support.
In 2011, the European Union had also awarded Verotel with official Internet Payment Service Provider Institute status, giving them the prestigious title as the first high-risk payment processor to get a PSD license.
The Nuances of Verotel Payment Processing
The company uses different platforms for doing business as a payment processor.
In addition to charge cards, Verotel accepts online US checks, direct debit for European Union customers, and predetermined flat charges which are billed towards the customers’ phone bills (for all United States and European Union customers).
The Premium accounts enable recurring billing and different transaction amounts (via Verotel FlexPay), but instead of a yearly fee, Verotel takes a one-week processing minimum of $1,000 and can allocate a regular monthly minimum fee if this processing requirement is not met.
The Premium account offered to qualified customers also enforces a six-month moving reserve of 10%, however, it has lower processing charges varying from 13% to 14% based on a retailer’s weekly volume.
Verotel focuses on services for top risk and worldwide companies. With offices in several different countries, they can reliably facilitate global transactions. Their payout currencies are currently the US Dollar, Euro, and Pound Sterling, although they accept numerous other currencies, such as the Danish Krone, Swiss Francs and Chinese Renminbi.
Verotel Damage Control
In general, the Verotel Company is showing a minimal-to-moderate quantity of complaints because of its size and niche. At the other side of the spectrum, the recent trend of complaints regarding its poor customer support can be considered concerning.
This can be expected with the large number of transactions the company is involved in. The organization takes strides to offer customer support with an online forum, as well as online 24/7 customer service.
Thus, despite the complaints, it cannot be said that Verotel is not addressing them as effectively as the company can.
When customers set orders or access bank account information, Verotel makes use of a top-of-the-line secure server.
The company’s secure server software (SSL) encrypts information that is input prior to it being delivered to the recipient. In addition, all the customer data that is collected remains safe and secure against unauthorized access.
These and other technological developments have kept Verotel “at the top of its game” in a manner of speaking.
After all, competition continues to be fierce among the other Internet Payment Service Provider organizations in the business. For this reason, Verotel needs to keep pace, especially with the new area opened by an emerging technology: cryptocurrencies.
How Verotel Handles Bitcoin
One of the emerging technologies in recent years when it comes to electronic transactions is the rise of “cryptocurrencies”. These alternative, decentralized trading mediums have become increasingly popular, particularly “Bitcoins”.
As a result, it is in the best interests of Internet Payment Service Provider companies like Verotel to adopt technologies that effectively and safely conduct transactions that involve these cryptocurrencies.
As an example of these recent developments, Verotel has initiated processing these cryptocurrency processes. For instance, Verotel customers that purchase content through the company’s client webmasters and retailers can tell their details are handled inside a completely private manner.
This is potentially a huge advance for digital currencies. Since there is an ever-increasing number of things that can be purchased with Bitcoin, it is likely that there will be an elevated flow of trade, which many say is the next phase for Bitcoin and various Altcoins.
It will be interesting to determine how this ends up and if other payment processing companies are to follow along.
Choosing to Process Bitcoin
Furthermore, Verotel is among the first payment processors to begin accepting Bitcoin through another payment processor within this category, Bitpay.
Earlier in 2014, Reuters reported that Verotel would first release its Bitcoin functionality to several select retailers before releasing the functionality to any or all 50,000 retailers.
Verotel also mentioned they could be converting 100% of received bitcoins across to their retailers’ preferred currency once per week, as Bitcoin cost is very susceptible to change and fluctuation in perceived and real value.
As Verotel prides itself with never missing a weekly payment, this is to ensure consistency in the company’s line of business and established reputation. These bitcoins are to be converted soon after payment.
Verotel’s transactions are controlled through the Nederlander Central Bank, which continues to be incredibly friendly to users of Bitcoin.
Later, the world’s first Bitcoin Boulevard was opened within The Hague having a Bitcoin ATM, whilst the Nederlander energy supplier, DAS, also lately announced its decision to accept Bitcoin.
With these systems in place, one can certainly say that Verotel is at the forefront in the cryptocurrency development and will continue to do so as the industry and technology evolves.
Alternative Bitcoin Processors
When deciding on a Cryptocurrency Processor, finding one that will support your needs most effectively is paramount.
This is especially true with larger transactions, as is the case with Verotel and other Internet Payment Service Providers. Below, two examples of the more prevalent alternatives are covered – BitPay and Coinbase – that you might find interest in.
BitPay has a phenomenal 2017, having processed over $1 billion in Bitcoin payments. Since that time, they endeavored to introduce new investors who can help BitPay scale globally in order to satisfy customer demand.
Further goals for BitPay include key hires in engineering and regulatory licensing, in addition to the expansion into emerging markets in Asia, which is touted as one of BitPay’s fastest-growing regions for transactions and wallet adoption.
BitPay lets users get any amount from a chosen person, from all over the world, via computer or even a mobile phone. With BitPay, companies can leverage this ability and the planet’s best-selling first borderless payment network.
BitPay users also take advantage of the best bid forex rates. The organization offers monthly prices plans and expenses, whilst offering no transaction charges.
The available plans vary from $30 to $300 per thirty days, with respect to the scope of the support needs and the number of purchases processed each day.
In the realm of cryptocurrency, it goes without saying that security is vital, especially for Internet Payment Service Providers that process high-risk transactions.
Coinbase is very well-financed and, therefore, has the capacity to invest a substantial amount into the development and upkeep of robust security systems.
Coinbase is supported by reliable investors and is among the only cryptocurrency buying and selling platforms that feature support by investment capital from well-known investment banks, along with other banking institutions. The CEO of EF Hutton, Christopher Daniels, has said that Coinbase is trying to create a unique fintech infrastructure in Arizona that encompasses a lot of brokers and advisors.
This infrastructure is what led to the development of their Acex service. Acex membership structure benefits every member firm, all who benefits from the development of Acex.
Like any controlled financial services company operating in America, they have a need to recognize customers on the platform.
Coinbase users can create a limitless quantity of wallets and can purchase cryptocurrency instantly using a debit or credit card.
On the other hand, CoinGate offers a service that enables you to try your hand at buying/selling Bitcoin and does provide payment gateways on the internet, whilst including traditional POS options.
Coingate makes use of Shapeshift to permit the use of various altcoins, which also include Dashcoin. Coingate charges just a 1% processing fee for implementing these gateway services.
They also permit withdrawal in fiat currencies by using a variety of options including PayPal. CoinGate also offers retailers the opportunity to transform their Apple or Android device right into a crypto-capable POS.
This enables retailers to simply accept crypto right personally, wherever they may be. Phone-based POS’s are very popular because of their versatility, a product which has seen considerable use on the market.
Verotel: How Does It Fair?
Overall, we would give Verotel a decent-to-good score with regards to satisfaction.
They’re less costly to obtain and ready to go, giving them the edge over several other processors, though the fact that they’ve begun charging annual fees for charge card processing, much like everybody else.
It is a little disappointing, but this was not an unexpected development.
Despite this, they’re still cheaper. The client service from our experience, as mentioned beforehand, was just a little poor and slow when we set up an account; however, it should be noted that they had been dealing with a transition process within their structuring at that time.
Today, there is a revamped website and customer support response that appears to be just a little better.
With its history and continued adoption of emerging technologies and processes, Verotel can be expected to remain at the forefront among other Internet Payment Service Providers in the foreseeable future.