How High Risk Merchants Can Navigate Risk in eCommerce and Drop shipping

Apr 15, 2020

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

And more.

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

And more.

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.

Let us help you get a high risk merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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