If you are wondering whether or not you should choose an account for high risk merchant services for your payment processing, the answer to the question should most certainly be yes. The payment processor in charge of the high risk credit card processing would be liable for any troubles that involve the high risk of the client’s transactional ventures. Also, as a client, it should be common knowledge to you that the calculations of risk on your account will be much different from that of a standard merchant account.
Why doesn’t every merchant use it?
The reason for it is that the costs of a high risk credit card processing provider will certainly be more expensive than the standard one. The most significant reason for this is that high risk merchant services require more complex payment processes to safeguard their finances. Another reason for the more expensive pricing model would be a large amount of associated risk in terms of chargebacks that can be troublesome for everyone involved. High risk merchant services can generate significant revenues, but with them comes the added risk of high chargebacks, fraud, and money laundering risk. Therefore, a merchant account that is specifically tailored to handle such a merchant’s industry and business needs is needed. Such high risk credit card processing services help to reduce the chargeback rate and prevent fraudulent attacks. Even though it may cost significantly less than a high risk one, a regular merchant account would not be able to cater to such complex transactions and the security associated with it.
What to Look For in a High Risk Credit Card Processor?
First of all, to make sure risk is minimal, you need to make sure that the high risk credit card processing service you are turning to has a specialization in your industry. An example of this is that services work specifically with smartphone companies as they know the risks and the possible dangers they may face. After you have come up with a quality list of account providers that specialize in your industry, you will have to look extensively at what they provide. Also, you will have to consider whether or not the price you will pay for their services is justified or not. Here are a few things that you will have to keep in mind while zeroing in on the perfect high risk credit card processing service for you:
Custom Solutions
Your high risk merchant services’ uniqueness should be known thoroughly by the merchant account provider that you should choose. This should be adequately reflected in your merchant account in ways that you should find it a perfect fit for your online sales process. For example, some companies may be prone to large amounts of chargebacks, while others may thrive on large orders that don’t have a consistent pattern. When you consider the types of fees, you will be subjected to while attaining a high risk credit card processing account, and you will have to make sure that you can customize a solution that matches your needs rather than changes your business to fit into it. The fees that may ensue the choice of an account are:
- Set-up Fee
- Monthly Minimum Fee
- Cancellation Fee
- Chargeback Fee
- Gateway Fee
Customer Service
Customer service is a must-have for any service or business that is present in the modern-day. Customer service at your high risk merchant services may also be held in very high regard, and you should be able to expect that from your account provider as well. A good merchant account should guide you through the process of onboarding ranging from the selection of services to the bank package you need. A payment processor that is hard to get a hold of or does not treat you as a valuable client is not a service you want to be tied with.
Catering for Business Growth
Growth is an un-ignorable part of the business. And a merchant account provider with high risk merchant services should be well aware of the development. As your business will see growth, your business’s needs and requirements will change. You should be able to make new adjustments and modifications to the merchant account connected to your business. Flexibility for growth should be given on both sides of the agreement. The right merchant account provider will cater to the steady growth of your business. It will work with you and treat your business with the attention it needs at all stages that the company may face.
Added features
The ability to select features that sit well with your business model is key to selecting a merchant account that shall provide the best services to you. Your high risk credit card processing provider will be able to meet the specific needs of your business if they are actually good at their work. You should get what you know you need and should also learn about characteristics that were novel to you before you had started talking to the merchant account provider. Additional features that high risk merchant services need are fraud protection and chargeback control. A good merchant account will always provide you with many different add-on features and would exceed your expectations in the smoothness of payment processing that you will receive.
Secure Merchant Accounts
Security of a business’s funds and the safety of a business‘s financial health are integral to the future of a business. It would be best if you were sure that your high risk credit card processing provider has the tools to secure your transactions from fraud and other issues that may come from high-risk avenues. Top of the line merchant account providers will have a track record of keeping their client’s businesses safe. There will be visible security from third-party threats that may deteriorate your business’s financial health.
The ideal service is already there; just a little research is all you need to find the perfect fit for your business. The merchant account providers that will be worth your time will exhibit these five qualities, so you will be sure when you see the right service provider.