When you are ready to process the credit cards for your business, you will be sent looking for a merchant account through a merchant account servicer. The search won’t be hard, for the market has grown large over the last ten years or so. As quick as a blink of an eye, you can have a whole page of servicers in front of you. The best you can do for yourself and your business is to look at each one and find the one that best suits your needs.
As for high-risk credit card processing, here is the definition. Every one of the merchants worldwide must have a way to process their cards. Each is determined by the number of credit cards they process and the kind of purchases that are made, and lastly, how many chargebacks are going to happen. The customer has six months to ask for a refund, and in that time, so do a lot of other customers. If you are in a business that tends to have a large number of chargebacks, then you likely will fall into the high-risk category.
Do not despair
A large number of our day-to-day services fall into that very spot. Our airlines, the movie theater, the travel agency, the pharmacist, and of course the ones we expect, the adult websites, so don’t be afraid of being in the high-risk area. It only means that you are in a business with a high amount of refunds. The best thing to do is take care of the customers and they will take care of you.
For the next few months
Now that you have your high-risk credit card processing in place, the merchant will likely have a holdback account for you. This means they will put a certain amount of your card percentage placed into an escrow account for three to six months. After the trial period is over, you will get all your money back. It will be deposited directly into your account at once and you can move on with your business.
But be prepared
During your trial period, you need to be prepared. As your income arrives from your credit card purchases, that percentage will not be available to you, and you may have a shortage of your income. Be prepared to keep the apron strings pulled tight while this goes on. You don’t want this to be a reason to fail. Be prepared for this and you should do well.
You are on your way
Now that you are on your way, you have no excuse. Your business is ready to rock and roll and begin accepting credit cards. You found the merchant servicer that will do you the most good, and you know what to expect. Your steps are molded and you have a lucrative business to go run. Take advantage of this information and go grow a wonderful reputation and make lots of income. Good luck to you!