As a small business owner, you have enough on your plate, but payment convenience remains a priority. And if you’re in a high-risk industry, you may have had trouble getting approved for a merchant account in the past.
High-risk businesses are typically defined as those with a higher than average chance of chargebacks or fraud. This can include businesses in adult entertainment, gambling, or CBD industries, among others.
While getting approved for a merchant account may be difficult, it’s not impossible. Many high-risk payment processors out there can help you get the account you need. But how do you know the perfect fit for your high-risk business?
Top 3 Considerations When Picking a High-Risk Payment Partner
Reputation
First, you’ll want to ensure the company is partnered with a reputable bank. If a bank is willing to partner with the payment processor, that’s a good sign they are legitimate and trustworthy.
You also want to check the payment processor’s reputation. You can do this by reading customer reviews and finding out how long they’ve been in business. If the company is new or doesn’t have many positive reviews, you may want to consider a different option.
Fees
When choosing a payment partner, it’s important to understand how much the service will cost. Some firms charge a flat rate per month for payment processing, while others charge a percentage of each sale. It’s important to shop around, compare rates and find a balance between cost and service.
Beyond the cost of processing payments, you’ll also have to pay a fee to the payment provider for their services. This fee can fluctuate, depending on many factors, including the size of the business and the type of service provided.
If you’re accepting a payment type that is known to carry a high risk of fraud, you must pay more for merchant services than a business that only accepts credit card payments.
Relevance to your business
Finally, you’ll want to ensure the payment processor works well with your eCommerce platform or POS. Some payment processors specialize in serving certain industries better than others. If you’re unsure, you can discuss with customer service to learn which industries they specialize in serving.
Final Words
Many other factors, such as supported payment types and customer support, also matter when choosing a payment partner, but these 3 can make or break your business. Take time comparing companies before signing up with any.