|October 3rd, 2019|
Owing to numerous benefits card transactions bring along, a large section of society banks upon credit or debit cards for making payments or purchases. Tons of people across the world have stopped carrying any cash in their wallets, which makes it imperative for your business to accept card payments.
This is a no-brainer but a business that does not accept card payments loses a large part of profits (or some) to its competition (that accepts card payments). And, it is independent of the fact that you are a product based company or one that is service-based. It is obvious that you would not like to be on the receiving side of the spectrum where customers will be preferring other business over yours. It is unambiguous that in order to see success of your business you need to keep your door open for customers with cards in their hands.
What should be your next step then? Start accepting card payments. It is so obvious and simple. Right?
Unfortunately, it is not that simple for all merchants, especially those who have started recently. Small businesses often face more challenges than the well-established companies in availing the hi-tech payment solutions.
Have you recently faced a rejection for card processing services or have you faced an abrupt termination of your merchant account? This can be a sign that you need high-risk merchant account anytime soon.
Who is a High-Risk Merchant?
A merchant who has been denied processing services by the issuing banks or processors, can be a high-risk merchant. Some businesses are considered high-risk for one or more reasons. These are often identified to be at a higher risk of chargebacks which levies financial losses on the involved financial institutes such as banks and payment processors.
By rejecting a business’s merchant account application, these institutes supposedly, reduce the chances of facing financial burden build up in the chargeback occurrence.
This discrimination might not appear to be a good thing for small businesses and even to those who have been facing hardships for availing modern-era payment solutions. Experts nevertheless stress on its importance, as it goes in favor of the customers who should have a proper mechanism to be secluded from the high-risks pertaining to a business’s nature. Moreover, it is a sort of liberty provided to banks and other financial institutes to provide their services while they are free to withdraw the same when it is apparently getting burdensome.
It is important to know that banks and financial institutes may vary in their criteria for accepting and rejecting your application. It is a good news for the merchants facing trouble in buying merchant account services. They can try with some other institution, when jilted by one.
It is most important to learn the features that can make you fall in the category of a high-risk merchant. Possible reasons for you being classified as high-risk:
Due to the above listed characteristics or reasons related to the merchant’s business practices, your company can be labeled as a high-risk entity. Owing to this tag of high-risk merchant, you would not be able to succeed in securing a standard merchant account. You will have to get a high-risk merchant account for your business.
Bottom line difference of this includes various restrictions and a very high processing fees. On the top of it, less number of providers open to proffer you merchant account services that contributes even more to your plight.
Quest For The Right High-Risk Card Processing Service Provider
It is a sad fact for the high-risk merchants that they do not have too many options before them as far as taking up payment processing services is concerned. Knowing the reality, most of the merchants that are labeled as high-risk happily agree to open their account with the first provider that comes across. Caution: IT IS A HUGE MISTAKE!!
Knowing your reality and acting according to it is fine, but try and understand the market trends. Is it not possible that there are many more players in the industry like you? And who knows you still have a strong relative position?
Industry insiders reveal the overlooked truth of payment land by saying that by not making use of their inherent right to choose the most suitable provider, merchants invite problems to severe future implications.
There is no denying that the road to secure and fast payment processing will be difficult for you but, when you go with an unqualified processor you are binding black cloth on your eyes. Ideally, a payment processor you should be opting for is the one that is not only reputable and experienced but also holds expertise in handling high-risk merchant accounts.
Repercussions of not sticking to these standards you may end up encountering problems like excessive fees, increased vulnerability to chargebacks and it may even lead to placement of your business on the MATCH list. There is no need to act in hurry as no matter their number is less but, there are providers that provide competent and robust card processing services to high-risk merchants.
Advantages Of Working With A Proficient
Making comparisons between processors on the basis of price may not help always. For having needed traction, you need to buy specialized services only. Processing partner that exposes your business to competitive options is the one you should be looking for.
Unlike the sub-standard payment processors, their experienced team will not leave you alone to deal with chargebacks. With their chargeback protection practices in place they will be able to help you combat the fraud.
It is only possible to get access to ACH, eChecks, online payment gateways, loyalty cards and more precocious payment acceptance ways when you associate with the master of high-risk payment processing.
Seeking Help For High-Risk Processor?
Are you not able to cope up with the ordeal of beckoning the best high-risk payment processor? You need not give up on your business plans as long as Paycron’s ace team is rendering its assistance. Call us now to breakdown the tedious process into a simple and easy one.