Finding a reputable and trustworthy high-risk merchant account provider can be a challenge. Industries that have higher than normal incidences for fraud and chargebacks, “legal gray areas”, age restrictions, and so forth are likely to hit a brick wall when it comes to securing a high-risk merchant account.
It is no wonder. High-risk businesses are capable of generating a considerable amount of income. Unfortunately, higher-income usually translates into higher incidences of chargebacks, fraud, and money laundering risk. This is why securing a high-risk merchant account is the best solution, as it will mitigate all of the aforementioned risks.
How To Choose The Best Payment Solution For Your High-Risk Business
Despite the overwhelming number of standard payment processors that are unwilling to grant merchant accounts to high-risk merchants, there are a growing number of high-risk processors ready to serve.
More high-risk processors have been in the industry long enough to offer the best-tailored solution for just about any high-risk vertical.
But before you jump in, it’s best to take some time to develop a game plan that will yield the best results. Here are some tips to find the best payment solution for your business:
There is no greater game plan than to do your due diligence and research high-risk merchant account providers. The best litmus test to qualify a provider is to determine whether or not they have a demonstrated history working with high-risk industries.
It is especially important if they specialize in your industry.
A processor should also be transparent with its fee structures and any technical requirements. You should be given the ability to offer your customers as many payment methods as possible. Also, they should be up-to-date on any changes in regulation and communicate these changes with you.
Seek out reviews, talk to colleagues in the industry, and ask for recommendations.
2. Honesty Pays
Be clear and upfront with your provider about the nature of your business and the products you provide from the get-go. By doing so, your provider will be equipped to give you the best quotes on rates. Not to mention that, by disguising this pertinent information, you run the risk of having your merchant account shut down.
As part of the application process, you will also be required to present additional official documents such as financial statements, a merchant account history, and your credit history.
3. Get Only What You Need
There are as many services offered as there are verticals in the high-risk market. It’s best to avoid all the unnecessary bells and whistles and narrow down what specific services you will need for your payment processing.
Some of the more essential payment processing services to seek out include POS systems, mobile payment solutions, payment gateways, integrations, and credit card terminals.
4. Seek Providers With Flexible Contracts
Some high-risk merchant account providers are notorious for locking unsuspecting merchants into lengthy contracts. This is a red flag as the needs of your business could likely change in the near future.
Breaking such contracts can mean having to pay exorbitant penalties. Always read the fine print or seek the assistance of an attorney. Seek providers that offer month-to-month contracts for more flexibility.
5. Excellent Customer Service
What should make a reputable and trustworthy provider stand out is their commitment to providing first-class customer service. It should not be about snagging you to sign a contract, only to leave you stranded and unsupported.
A professional provider will partner up with you and your business, offering you 24/7 support, training, maintenance, and troubleshooting.
Navigating the tricky waters of high-risk merchant processing can be difficult. Fortunately, merchants are not alone. There are plenty of high-risk merchant account providers armed with expertise and resources to guide merchants in the right direction.