More than 600,000 new businesses are shaped within the United States every year. However, now not all of these are a success. One of the maximum crucial attributes of a successful enterprise is using the right technology.
This is particularly proper in terms of credit playing cards. Unfortunately, it can be greater tough to pick out a credit card agency that has been recognized as a excessive-risk service provider.
The good news is that having a high-risk merchant account doesn’t necessarily preclude the use of such a service. Let’s take a look at the key points you need to know.
Defining high-hazard traders
As the call implies, a high-threat merchant is one that is riskier than common for credit card processing corporations to paintings with. This may be because of more than a few of things, which includes a organization having a large variety of chargebacks.
One of the most common reasons why a business is deemed to be high-risk is the fact that it is new. If you only recently started your company, there simply isn’t much history for payment processors to use to determine your reliability.
A similar purpose can be an insufficient range of transactions. Businesses in certain industries are also automatically considered high risk.
These include those in spaces like gambling, travel, and adult entertainment. This is due to the fact that companies like these tend to have a large number of cancellations and chargebacks. Other circumstances that influence your risk status include having a high number of refunds or fraudulent transactions.
Having high-value credit card transactions could also place you in this category. The same could be said about companies that have a poor business credit history.
High-Risk Merchant Accounts
To accommodate their increased risk, businesses that fall into this category must use high-risk business accounts. These bills are especially designed to offer high-hazard agencies get entry to to ideal credit score card processing offerings. Obtaining popularity of this sort of account isn’t always immediate, though.
You will want to offer financial statements, tax returns, and bank statistics for review. When making use of for a high-danger credit card processing account, you must be as transparent as viable approximately your industry.
If you try to cover key information, you may face consequences afterward. For instance, you may find that your fee quote dramatically will increase.
Finding a Payment Processor
At first, finding the right credit card processing company can seem difficult. The good news is that it’s much more streamlined the people expect. Listed below are some of the most notable attributes to keep an eye out for.
Ongoing support is one of the most important aspects of the credit card processing company you work with. Contingencies are always liable to arise. The last thing you want is to find yourself dealing with a situation.
Without good customer service, implementing a payment process can be more trouble than it’s worth. It should be easy to communicate with them, too.
Many processors offer 24/7 support, allowing you to find a resolution to problems at any time. Even a single bad transaction can have a large number of consequences.
This includes damage to your reputation, customer dissatisfaction, etc. It is best to work with someone who will always be there to help you.
Make certain you may have interaction with a human and now not a chat bot. While chat bots are outstanding at answering primary questions, they have hassle coping with complicated problems.
The company you work with should be fully transparent about their fees. These are easily found on their website.
If you still have questions, reputable product service companies can provide detailed information. Steer clear of providers that attempt to deflect your questions or concerns.
This is a red flag that you can’t ignore. You should also consider the rates they offer.
Even if they’re completely transparent about what you’re paying for, it could be more than you’re worth. It is advisable to get quotes from multiple providers so that you can make the most informed decision.
Keep in mind that you often get what you pay for. Choosing the cheapest is not always recommended.
Convenient payment methods
This is a crucial attribute to consider, especially for small businesses. Businesses often have complex needs, and the provider you work with should offer multiple different payment forms. These will vary among providers, so you should keep searching until you find one that can accommodate you.
Keep in mind that finding the best option may take some effort. Not every donor wants to make changes with high-risk traders. If they seem too strict with their payment terms, you’re better off looking elsewhere.
This will save you a large amount of stress and money in the future. Keep an eye out for companies that offer the best dual pricing program, as well.
Security is something that you can never neglect. Your data is only as safe as your payment processor keeps it.
It’s crucial to work with someone that incorporates quality antifraud tools. High-risk accounts are much more subject to fraudulent behavior.
So, the provider should use technology like chargeback prevention and multi-factor authentication. This will go a long way toward keeping your data as safe as possible.
The more security measures they have, the better. Never work with someone who tends to cut corners in this category. This puts you at substantial risk of a data breach.
The average data breach costs over $4 million, which can be crippling to many businesses. Active monitoring is another attribute to look for. This can help prevent small issues from evolving into something much larger.
Technology is constantly evolving to become safer and more efficient. The provider should be knowledgeable of industry trends and provide an open API.
Not only will this make your experience more pleasant, but it will also prevent issues from arising. Onboarding should be a seamless process that doesn’t take more than a few days. Put simply, every interaction you have with the payment processor should feel contemporary.
An important red flag a watch out for is a company that has an outdated website. High-quality websites are one of the most important components of a successful company, and a payment processor that does not have one for themselves indicates that they don’t care much about technology.
Ask them about their typical downtime, as well. While it’s impossible to guarantee 100% uptime, excessive downtime will only lead to financial issues.
Their Past Reputation
Take a look at what other clients have had to say about working with them. Were they pleased with the experience they got? How were their overall results?
Reading online reviews can offer powerful insight into these concerns. You should also research the processor independently online.
Keep an eye out for any controversies they may have been involved in. For instance, you wouldn’t want to work with someone that had a class-action lawsuit filed against them less than a year ago. Keep in mind that it’s normal to have a few negative reviews.
However, their feedback should be overwhelmingly positive. You should also consider how recent the negative feedback was.
To clarify, let’s assume that all of the reviews from the past six months were negative. This could indicate that there was a change in ownership of the company, the business began prioritizing profits of customer service, etc. As long as you do your due diligence, you should find the right decision with ease.
The faster you can integrate the payment processor, the better. Having a lapse in payment processing could have a substantial negative impact on your bottom line.
Not only will customers be unable to use certain payment methods, but they might turn to a competitor instead. In a situation like this, it can be impossible to bring them back to your business. The good news is that reputable payment processing companies prioritize integration.
They aim to get you up and running as soon as possible so that you can continue to provide excellent service to your customers.
Get Started Today
Understanding your situation as a high-risk merchant can help you navigate this process much more easily. From here, you’ll be sure to make the best decision for your business and get started on the right track.
Our blog has plenty of useful articles on how to make your business more successful. Be sure to check them out today to see what you can learn.