Starting a business takes hard work, dedication, and expertise in a particular industry. If you possess these qualities, then starting a lucrative small business may be the best financial decision you can make. Unfortunately, not all businesses are created equal. If your chosen business is high-risk, then you will have considerable trouble starting a high risk merchant account with traditional payment processors. Banks often avoid doing business with industries who they believe are unstable. Luckily, there are organizations that specialize in funding and managing high-risk merchant accounts. Running a successful high-risk business involves managing these 5 elements.
Recognize That You Have a High-Risk Business
Ask your desired payment processor if your business is high risk. A high risk business is generally defined as one with “a high chargeback ratio.” If your business deals in online sells, trades, gambling, vitamins, electronics, or travelling, the chances are it will be considered high risk.
Know the Risks
There are a few risks when dealing with high risk accounts. These businesses often experience higher than average instances of fraud, chargebacks, customer complaints, and returns. An intimate knowledge about how your particular industry operates, will mitigate these risks.
Recognize and Reduce Fraud
Your ISO and agents should be following standardized guidelines to recognize and monitor possible instances of fraud. Keep a negative database that cross references your customer’s IP addresses and other information to keep track of website visitors, and suspicious activity.
Learn How to Manage Issues Associated with High Risk Processing
Talk to your ISO and sales agents about the specific precautions that your company can take to ensure smoother operations and better profits.
Find the Correct Processing Partner
Recently, the FDIC recanted its list of high risk businesses, still high-risk businesses are discriminated against when seeking a reasonable payment processor. Even if a bank does agree to open a high risk merchant account, they often charge expensive fees for handling the risks.
Today high risk companies must use reputable third party payment processors who are experts in managing high risk business. eMerchantBroker.com is a low hassle, low cost payment processor that will build and manage your high risk merchant account with expertise and skill. Our agents will protect your transactions and increase your profits.