Although you may not be able to get a traditional merchant account because of your high-risk status, if you seek out the high-risk teams, they can help you all the way. Check out their live chat and talk to a representative. Ask all the questions you need to be answered before you decide you want to take out a merchant account. Just know, that you can’t process the debit and credit cards without that account, and it will cripple your business.
High-risk credit card processing is not for the faint of heart. You really do want the specialists in this department. They have the knowledge and the experience to get you your merchant account. They have offshore banks that you may need to utilize and with their expertise, you can be guided to the best package for your business.
Since you are at high risk, you will pay a little extra for the merchant account services, but if you keep your nose clean and work diligently with your account, then there is no reason not to negotiate those terms down the road. Nothing on the planet is forever, and if you have run a clean processing business, with few chargebacks, then you should be able to talk with your processor and get your rates lowered.
As a new customer, you will have a trial period to work through. Depending on their terms, it could be three months to a year. As you work through the trial period, you will have a reserve account set aside for you. Some will have a rolling reserve and others will keep the whole amount in the account until your time is up.
A rolling reserve will give you back your money a month after it has been made. The other one will give you your money at the end of the trial time in one lump sum. Be sure to know which one you will be dealing with, so that you are prepared financially for the shortfall.
Why are they keeping my money?
They don’t want to pay for your chargebacks themselves. A chargeback is a fancy way of saying ‘refund’. A merchant account servicer is responsible for the refund if you can’t do it. So, before it becomes a cardholder’s bank’s responsibility to contact you, have some sort of store policy to deal with refunds. And when you get a letter for a refund, take care of it right now. Don’t wait. If you leave it, and forget, you could lose your merchant account.
Too many things
As a beginner in the merchant account area, take the time to get to know how things are done. Know what the penalties are and learn how to deal with difficult things. The more you know, the better you can deal with your account. It can only help you in the end. Knowing how to operate within the rules makes it so much easier on all concerned.