Not all businesses will require to find a high-risk merchant account. Your entity might need one if it meets one of many points surrounding how you’re operating. Here are a few points to see when looking at the best time to find a high-risk merchant account.
Why Do You Need To Find A High-Risk Merchant Account?
Your Industry Is Risky
You may be in a high-risk industry that requires a high-risk merchant account. These high-risk fields have many points in common:
- An industry can entail a greater risk of chargebacks, fraud, and other concerns that can lead to returns on card purchases.
- A field could also have a low-level profit margin. Businesses with lower profit margins often struggle to bring in profits at times, thus making it harder for some companies to stay afloat.
- Some fields are also heavily regulated and entail products or services subject to extensive laws. These rules can change at any moment, and there’s no guarantee what is legal in one place will be fully legal in another.
- Your industry could be risky if it is relatively new. Some newer fields are unpredictable, especially as chargebacks could be likely for some things that people do not recognize or understand. More established industries will receive more support than others.
Look at your business and see if it experiences plenty of chargebacks or if it struggles to stay afloat at times. You might need to find a high-risk merchant account if your company isn’t capable of staying up on its expenses or if there are too many threats influencing how you work.
Some Processors Will Not Support You
Another good time to find a high-risk merchant account entails when processors aren’t able to help you with your work. The problem with many processors is that they won’t support you if you experience too many financial issues. Some major names like PayPal or Stripe may not help you process payments, for example. Hiring a high-risk service provider to support you is necessary when you’re struggling to find a processor that will take a chance on your business.
Every processor has a unique threshold for how it will support businesses. Some are willing to assist a business, while others may be more suspicious over what someone provides. A high-risk team will be more likely to support your business regardless of what you have been doing and if you have too much of a risk for someone to support.
You’re Dealing With Too Many Chargebacks
Your business might experience more chargebacks than you can afford. Chargebacks entail cases where someone demands a refund on your card due to a fraudulent or questionable purchase. You would lose whatever funds you earned on that transaction, plus you may have a separate chargeback fee. The rules will vary by each service provider, but they can impair your profit margin.
Many high-risk services will help you control your chargebacks:
- You can utilize a service that provides fraud protection tools to reduce your risk of experiencing chargebacks.
- A company can also provide lower fees and rates for chargebacks, especially if your industry is one where these may be inevitable at times.
- Some teams can help you manage multiple merchant codes. You can do this if you sell multiple products or services. Some codes may come with lower rates than others, especially if they entail lower-risk items for sale.
You can check different high-risk providers to see what they can offer your business. All parties have unique terms for what works and who you can hire, so check around to see what is open when finding a smart solution.
Your Current Provider Isn’t Talking With You
Many people are unhappy with their service providers because they’re hard to contact. They might not get the answers they need to whatever questions they hold. High-risk businesses can especially be frustrated, as they won’t get the help they need to manage high-risk transactions.
But you can hire a high-risk provider that offers full service for your needs. A customer service team can consult you if you have specific questions or needs for work. You can ask a group for help finding the right solutions for your business. You may find solutions that are easier to follow and don’t require too many complex answers.
A quality customer service team should be available through a live chat, by phone, or through email. You can talk about anything surrounding your account with a quality service group.
You Have Too Many Fees
The last point for getting with a high-risk account is if you’re bearing excess fees with your current provider. Traditional service providers will charge extra fees for service, especially if it finds your business is struggling to manage its funds.
High-risk service providers can help you manage your work without charging excess fees. A team can provide a clear service deal with understandable terms that lay out everything you’ll spend before agreeing to anything. You may even find some deals where you don’t have to enter lengthy years-old contracts for services.
One Last Point
All these situations are good points for when you should hire a high-risk merchant account for your business. Dealing with an increased risk of chargebacks can be tough. But having someone on your side that can help you manage your credit card processing needs and do so with care and support can make a difference when you’re looking for a trustworthy team.
The best thing to do when it’s time to find someone is to be upfront with whoever you contact. Be direct about whatever you’re using and that you have a plan for work you can trust. Honesty is essential, as a provider won’t help you if you are not being honest about what you are offering in your work environment. You can submit your financial statements, your merchant account history, and other details about yourself to highlight what you have been doing with your work. Be as complete as possible when letting a group know about your business and how you require assistance.
