As exhilarating as it is to start and run a business, it also involves quite a bit of risk. These risks will come and go and change as your business grows. However, if your business falls into the high-risk category for payment processing, you will have a few more challenges in your path than most.
What does it mean to be “high-risk”?
Merchants that find themselves in this category usually struggle with high chargeback rates and fraud. Other reasons they might be in this position include poor credit, high processing volumes, low cash reserves, industry-wide difficulties and limited time in business and financials (e.g startups). Ultimately, this label makes it incredibly difficult, if not impossible, for a merchant to secure credit card processing. Without this service, the business will be unable to accept and process their customers’ debt and credit cards.
What is high-risk payment processing?
A high-risk merchant account is offered by a high-risk provider. A high-risk provider is a processor that specializes in working with the challenges and unique needs of these merchants. They create and provide customized products that ensure merchants can still offer their customers’ the very best in payment processing options and safety.
Because there is some risk involved, the fees are naturally a bit higher for these services. But for merchants who cannot secure payment processing, these services are a huge relief. They not only allow a high-risk business to accept credit and debit cards, but also offer multiple payment processing options, lower the likelihood of chargebacks and fraud and safeguard both the business’ and customers’ information.
Reasons why you should consider a high-risk processor
- Greater reach. Most merchants agree that the benefits of utilizing high-risk processing far outweigh the disadvantages, especially ecommerce merchants. Low-risk merchants are often restricted or prohibited from buying and selling in different currencies and expanding their reach to other countries. High-risk processing allows merchants to reach around the globe.
- Limitless earnings. Low-risk merchants’ ability to make income via credit cards is often limited. They are restricted to processing no more than $20,000 to $25,000 per month, for example. Sometimes they are also not allowed to accept credit card transactions with a value more than $500. High-risk processing allows merchants to maintain a consistent stream of money and big-ticket transactions without the worry of processing issues.
- Non-threatening chargebacks. Unlike low-risk merchants, high-risk processing ensures a business will not be jeapardized due to chargebacks. High risk processors help companies reduce chargebacks to a minimum and better manage them in the first place. If a bad month does occur, the merchant doesn’t have to worry about the outcome with their payment processor.
High-risk credit card processing offers merchants a lot of potential. The key is to make sure you’re partnering with the right processor for your business type, industry and unique situation. The best way to make sure to choose the right provider is to research and compare – see what other merchants are saying. Check out the many reviews and industry updates Best Payment Providers has to offer, for example. Browse reviews and discover the provider that meets your needs and has the reputation your business deserves.
Author Bio: Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of Best Payment Providers. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice-cream on his backyard porch, as should all right-thinking people.