Certain businesses sell products that come with a higher threat of fraud through chargebacks and stolen cards. Don’t assume all buyer is out to defraud the seller, but just try relaying that considered to major merchant account providers!
A high-risk business could also face a concern of acceptance. The major merchant account providers don’t want to deal with morally ambiguous products for concern with societal pressure. A high-risk merchant account, however, can bypass the major providers by offering the same mastercard processing services at competitive rates. So what’s the problem? Discover three benefits of securing a HIGH RISK MERCHANT ACCOUNTS.
Less Hassle When Chargebacks Happen
great things about high-risk merchant accounts
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A low-risk merchant account includes its risk: Way too many chargebacks can result in account termination, a problem for just about any business. Since the account is opened as a higher risk, the provider is aware of the dangers beforehand. Whenever a chargeback happens, or a fraudulent card gets used, the business enterprise won’t get threatened with loss of the account. Instead, the provider gets the company take its preventive measures to protect against fraud.
A high-risk business merchant account provider typically requires the business enterprise to keep a reserve fund to protect chargebacks. Just how much is defined aside is a share of the average monthly sales; that percentage can range from 5 to ten percent. What the provider finally requires as a set-aside amount is determined by various factors outlined when someone opens the account. Money also needs to be left in the take into account a specific timeframe.
While these precautionary measures will come as a headache for the business, they’re essential for this kind of merchant account.
Heightened Security Measures
While eliminating all fraudulent cards isn’t completely possible, it is possible to catch them through indicators and other detection techniques.
High-risk merchant accounts use reliable detection techniques during the transaction process to determine if the card is legitimate. These techniques can protect the business enterprise, the merchant provider, and the card’s original owner from theft. The fewer fraudulent transactions that happen, the better off you’ll be. The one sign the customer notices is that card processing takes slightly longer when compared to a standard transaction.
Usage of Larger Markets
Checking a high-risk merchant account allows anyone to create an online site for sales online and over the phone. Your site acts as a virtual catalog for offering products to anyone who has an web connection. Without a website, an enterprise restricts itself to a local market, stifling growth and profits. It doesn’t matter if the product sold is something or a physical item – accepting bank cards earns more buyers who choose the safety and capability of their cards.
While you’ll face a certain level of risk and fraud when you accept credit cards, you can eliminate a few of that risk by using a proper merchant services provider. Everyone from the business to the client benefits over time when you make some smart up-front decisions.