Looking for a High Risk Credit Card Processor?
Have you been having problems getting approved by credit card processors? You aren’t be the first one to have been disapproved for being high risk. Some credit card elelepflege payment processors do not deal with or do not have the capability to transact with high-risk business as yours. There are some high-risk providers of merchant accounts though that understand the stakes in doing business with high-risk merchants like you, and in fact, have only one goal in mind. And this is to aid such business types in securing merchant accounts.
In business, the only constant thing is change; it is always unpredictable in some ways. The term high risk credit card processing itself seems to drive off perfectly sound processors a long ways off. Few merchants though see some benefit in becoming involved in dealings with high-risk businesses.
Those willing to take the chance provide high risk credit card processing, which is almost always for clients which have an unpredictable business environment. Online businesses need to secure a merchant account with what is called an acquiring bank before they are able to accept credit card payments for their products or services. Those whose businesses are considered low-risk do not meet with too many difficulties applying for one. But for high-risk businesses, it is the opposite.
Here are some drawbacks in having your business viewed as high-risk:
1. Expensive fees – High risk merchants are usually charged more expensive fees even to open an account with a provider. This is because processors assume chargebacks for these merchants. Sadly, when a business cannot cope with the fees, it is possible for them to fail entirely.
2. Requirement for account reserves is expensive – A payment processor may ask for a high account reserve to be available since it is already thinking in advance of all the possible chargebacks that may be filed against the merchant. This account reserve does not earn interest at all. Cash flow constraints may also be experienced by the merchant since the reserved funds cannot be accessed until after a certain number of days have passed.
3. Higher chargebacks – For every chargeback filed against it, a high-risk business is charged a much greater rate for its chargebacks than are others. Plus the banks also charge an administrative cost besides the chargebacks, as a fee for processing the chargebacks.
There are also advantages to doing business with a high risk merchant. The following are some advantages in being labeled so.
1. Global reach – A high-risk business can do more in terms of business dealings than low risk ones; it can even serve clients in counties outside of the U.S., Canada, or Europe. E-commerce can deem a merchant capable of dealing with just about anybody from any location and at any time. This capability can only add to its attraction to high-risk credit card processors.
2. Limitless earning capability – because it is not limited in the same way as other business types, high-risk businesses can have an earning potential that is boundless. A business classified as high risk can earn considerable income fromelelepflege.derecurrent payments it processes and receives regularly. Without a cap on its revenue, high risk merchants can earn limitless income and create business growth in a short amount of time.
Ironically, the chargebacks allow the business to be viewed as growing and pulsing trade, and thus is not close to being closed down at all. It means that the chargebacks are no longer being viewed as something that is detrimental to the business.
It is no wonder that many payment processors have seen the light and are now doing brisk business with high-risk merchants. Credit card payment processors are now receiving applications for merchant accounts and processing these quickly, no matter the type of high-risk business involved.
You should not feel low after having been shoved aside by other processors. Do not delay; call today.