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High Risk Payment Processing – What’s A Merchant To Do?

by Matej Njiri20. May, 2016

High Risk Payment Processing - What's A Merchant To Do

Most providers of merchant accounts thinks that it’s very hard to work within high risk industry. Most of the time They will immediately decline account of merchant because there is a high risk factor. Every e-commerce merchants are in need of merchant account for processing credit card transactions online, but in reality not all of merchants have a fair chance. If you are considered high risk merchant it can be very hard task to find payment processing option. Just imagine that you are dependable and respectable merchant and processing companies tell you that your business field is to risky, it can be quite frustrating. Even though you can have books to prove them that you are reliable, many will reject because it can cause future damage. Imagine that bank is giving account to merchant and later it ends up in financial trouble, this means it can damage the provider too.

But what is it that makes business high risk at all? There are many factors why certain businesses are looked as if being high risked while others are not. It’s true that most of online businesses are perceived as high risk because of the potential of data theft. When someone makes an order online there is always certain danger that account or data can be stolen and providers simply can not ignore this. For example, travel business has a high charge back rate which means it’s its also high risk merchant account. If customer request refund or cancels the transactions it can be exposure to fraud. So when refund is being issued, bank is putting it on the line and for that reason most of providers just back away from this. Another factor that will determine whether you’re high risk merchant is how long are you already in business. If you are relatively new or been for just few years it can be hard to prove how sustainable your business is without having track record.

So what can high risk merchants do in order to change this? First you can reduce charge backs which means improving your support for customers or delivery time. You can also open multiple merchant accounts to lower down the risk of your profile. Also, add good security measures because of e-commerce. Maybe you already had been turned down by some of the credit card processors? Did someone told you that you are perceived as high risk merchant? Well, know that all is not lost.

If you are unable to do it by yourself luckily there are provides who are experts in this field. One of the best companies is called Payment Savvy. They understand what kind of risks are in your business type and problem of running it. Many providers want to take advantage because many people don’t like to involve with high risk merchants. So if you need to get approval for high risk account contact them and they will provide you with all the services you need to make successful business.

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