Web Design and Development Merchant Account

Sep 18, 2018

An estimated 1.66 billion people worldwide purchased goods online in 2017, according to Statista, an online statistics, market research, and business intelligence portal. Global e-retail sales totaled $2.3 trillion and were projected to spike up to $4.48 trillion by 2021. What even more interesting is that 94% of people said they mistrusted or opted not to shop from a website due to its web design, according to a study by Tyton Media.

Since competition is tough businesses need to ensure their websites look fresh and are developed well. So, it’s no surprise that businesses are seeking out the best in the business to design picture-perfect websites that are developed to work flawlessly on every device, including smartphones.

Though this industry is all a buzz, any professional in this sector has a difficult time getting a web design and development merchant account. If you can’t get a merchant account, you can’t safely and securely accept credit and debit card payments.

Why It’s Difficult to Get a Web Design and Development Merchant Account

Banks and traditional lenders classify web designers and developers as high risk, and, therefore, often won’t approve them for merchant accounts. They are classified as high-risk because they are prone to chargebacks, which is when a bank forces a merchant to refund the cost of a disputed or fraudulent transaction. However, with a chargeback, the customer is not obligated to return the product or service it received. When merchants have too many chargebacks compared to their sales numbers, merchant account providers can freeze and eventually terminate accounts.

Reasons for Chargebacks

For instance, some merchants are not prepared for difficult customers or those who are unsure of what they want. The work designers do is very subjective and expensive, so when their customers decide they don’t want to pay for their services it is a major hit. Designers and developers not only lose their time and resources, but the sale. Also, when a chargeback is found valid, banks charge merchants exorbitant fees.

Also, web design and development startups may not offer the most trained, and appropriate customer service as larger, more established businesses. If customers complain about work they have done and there aren’t good customer support representatives available to help the problem, the merchant can expect rises in refunds and chargebacks.

Know Your Code

All industries are categorized by SIC Codes and NAICS codes, which are used by government agencies to develop industry statistics. It is important to have proper classification to prevent funds from ending up being held in reserve due misrepresentation of a business.

Here are some common SIC and NAICS codes in the industry:

SIC 7371: Computer Programming Services
SIC 7373: Website Design Service

NAICS 541512: Computer Systems Design Services
NAICS 541511: Custom Computer Programming Services
NAICS 541519: Other Computer Related Services
NAICS 519130: Internet Publishing and Broadcasting and Web Search Portals

In Conclusion

The best way to get a web design and development merchant account is to know what you are up against, like tough customers and inflexible banks, and look for a merchant service provider that has the expertise to work with high-risk businesses.

When banks won’t help, your best option for getting a web design and development merchant account is to turn to a high-risk merchant service provider, like eMerchantBroker.com (EMB). As a provider that specializes in high-risk merchant accounts, such as those in the web design and development industry, EMB caters payment processing solutions to meet the needs of merchants of all sizes and with many different backgrounds. Additionally, EMB offers fraud filters and mitigation tools to help prevent chargebacks. Its application process is simple and quick.

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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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