The increasingly large number of digital shoppers has provoked your business mind, and you have finally decided to become a member of the online retailers’ club. However, acquiring an efficient system of receiving electronic payments seems to be harder than you had thought, because your business evidently falls under the high-risk category.
You can now wipe off the sweat because we have a reasonable solution: high-risk payment processing. The following is our guide to acquiring the most effective payment processing system for your high-risk business.
- Understand why your business is considered high-risk.
Your business can be branded “high-risk” because of:
- Classification within well-known high-risk industries such as digital content and streaming websites, money lending, drugs and pharmaceuticals, guns and ammo, and adult/dating sites.
- The sale of high-risk and high-value products such as custom-made items, jewelry, collectibles, and designer clothes.
- A bad credit record
- An excessive number of chargebacks from a previous online merchant account.
- Merely being new. Young businesses are often put in the high-risk category.
Identifying which of these factors is making it hard to get an account with a merchant services provider will make you more capable of dealing with the situation.
- Find the right merchant account provider.
Now that you are aware of the high-risk status of your business, it is time to look for a merchant account provider that will be willing to cater for your needs. Such companies are known as high-risk merchant account providers. With a reliable provider, you will be able to accept and process credit and debit card payments seamlessly, without having to worry about the high-risk nature of your business. A smooth buying experience can help maintain clients, get new customers and improve cash flow.
- Setting up the account.
Building a merchant account with your preferred provider will be easy and straight-forward. Moreover, reputable companies such as eMerchantBroker do not demand set-up fees from most merchants. All you need to do is fill out an application form online and upload your paperwork. The approval process usually takes a few days.
However, applying doesn’t always mean you will get the account. To increase your chances, follow the tips below.
- Gather and submit all the required financial statements, including the most recent balance sheet, profit and loss statement and any notes from your accountant.
- Maintain a good payment processing record. Your provider will want to know about your history with credit card payments. The more money you have traded and the fewer chargebacks you have, the more likely the approval.
- Accompany your application with a well-written cover letter explaining what your business entails and why you need a high-risk merchant account.
By employing the services of a high-risk payment processing provider, you can offer a broad range of payment services to your customers and benefit from increased sales. A “high-risk” label should not deter you from achieving your business goals.