The modern eCommerce industry involves a number of risks for business owners. There are risks that are typical of high risk businesses. Let’s discover what risks are associated with high risk businesses and how merchants can tackle their challenges. Also, let’s see who can help you with the best merchant account for drop shipping.
Merchant Account for Drop Shipping & Threats to Payments
The 21st century has brought about major developments in the eCommerce field. Here’re the top threats to eCommerce payments:
- Open banking fraud
- Buy online, pick up in-store (BOPIS) abuse
- Loyalty points theft
- Double-dipping travel chargebacks
- Recurring billing fraud
As it was mentioned above, high risk merchants are faced with specific risks and challenges, which require specific solutions. Importantly, the risks associated with this type of merchants are more than those associated with the lower risk ones. Let’s look at the inevitable risks:
- Higher than average rates of chargeback and fraud
- More expensive merchant accounts and business funding options
- Highly regulated industry and rules that may change frequently
- More complex card-not-present or CNP payment processing
The good news is that there’re respectable high risk processors like eMerchantBroker.com that provide the best possible terms and the cheapest possible rates for high risk merchant services. So, with a true high risk payment expert like EMB, you can enjoy unmatched merchant processing services, including a merchant account for drop shipping.
EMB has an A+ rating with the BBB and is voted the #1 high risk processor in the U.S. EMB is also a reputable alternative online lender in the high risk field.
How High Risk Merchants Can Overcome the Risks in Payments
Below, you can find several points that can help you overcome the challenges easily:
- Apply for a merchant account specifically made for eCommerce
- Look for a merchant services provider that guarantees the cheapest services in the space
- Consider implementing a cash reserve fund meant solely for chargeback fees
- Turn to a processor that knows you high risk industry best of all and offers unprecedented fraud prevention and chargeback mitigation techniques
Remember that, apart from obstacles, high risk merchant accounts also provide great benefits, such as excellent protection from fraud and chargebacks, great support, etc., which can’t be said about traditional accounts.
As you see, high risk merchants come across specific risks associated with payments. Thankfully, they can take action to sidestep them easily.