The acceptance of all major credit cards is a critical factor in the satisfaction of your customers. HighRisk Gateway was designed to provide your business with the high-risk processing solutions needed to accommodate them. We offer the widest selection of high-risk credit card processing products and solutions. The choice will provide the guarantee of a Secure. High-risk credit card processing is a subcategory of merchant payment processing services aimed at businesses that traditional banks deem “high risk.” The processor will usually accept a more significant risk of fraud and chargebacks in exchange for increased fees.
Multiple factors can make merchant processing riskier than what’s considered “normal.” If we drill down, though, we see that the primary danger is the increased risk posed by chargebacks. It could be the type of product or service being sold or the average dollar amount for monthly sales. It could also be the regions or countries in which you do business. Any of these factors could make you more susceptible to fraud or abuse, as well as chargebacks resulting from that activity.
As a merchant, you will ultimately pay the price for chargebacks. However, processors and banks have risks, too. The average chargeback will cost your bank $26 per incident due to processing costs and fees assessed by the card networks. Over time, this adds up; banks and processors could be open to millions of dollars in potential losses each year. Entities that offer credit card processing for high risk companies are willing to take on that added risk. They will let you take on greater risk exposure than a bank or processor would typically allow.
What Exactly Is Credit Card Processing?
Credit card processing is how businesses receive payments from clients using debit and credit cards. In most cases, this entails using point-of-sale (POS) software and hardware in combination with the payment networks of a credit card processing business. Credit card processing providers often take a fee for every sale and a cost per transaction depending on the kind of transaction.
Many processors let you set up payment systems to take debit and credit cards over the internet. Accepting payments when a physical credit card isn’t available, whether through a portal or over the phone, comes with a higher rate because of the additional risk.
In the credit card processing sector, the risk is a significant factor. Certain firms or whole industries may be classified as high risk, resulting in higher rates, fees, and terms of service than processor’s other customers.
Important Things To Consider When Looking For A High-Risk Payment Processor
There are many high-risk credit card processors out there, so it’s not that easy to choose a processor that can meet all your business requirements.
1.Business model
Ensure that a payment processor works with the business models that your company operates.
2.Security
As high-risk merchants generate more chargebacks or fraud attempts, you need a reliable chargeback prevention system and a multilayered approach to security. Ask for anti-fraud tools, AI-based fraud checks, real-time notifications, and more.
3.Expertise
The time of a company on the market and the experience of its leaders is crucial, especially regarding high-risk merchant accounts. What also helps is their knowledge of all the ins and outs of niche industries.
4.Flexibility
Find a high-risk processor that lets you implement various payment scenarios to cover all your business needs, even when running a complex business model. Make sure you discuss the rates, conditions, and features tailored to your business.
5.Transparent pricing
Search for the pricing structure on a payment processor’s website. Be transparent about the cost and that there are no hidden or extra fees. When you can’t get precise information from your potential high-risk processing partner, it should ring an alarm bell in your head. Also, remember that rates might be lower when your revenue goes up.
6.Technology
Is your prospective payment gateway providing multiple accounts? Can you customize every element of your payments? Does the payment platform deliver versatile APIs that give you complete control over the setup and payment process? You require both fast onboarding and truly user-friendly payments without downtimes and surprises.
7.Responsive support
Make sure that there is someone on the other side. Think about what might happen when there are issues with payments on your website, and you will get no help from your payment provider. You need to feel taken care of.
Avoid pricey contracts with legacy payment processors that lack the know-how and innovative technology. Your goal should be to minimize friction in your high-risk business, so conduct in-depth research before deciding which high-risk credit card processor you’ll work with.
Pros Of High-Risk Credit Card Processing
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Global Expansion
Standard processors can restrain or prohibit merchants from transacting in multiple currencies. They may also restrict you from selling to customers outside of regions like the United States or Western Europe. The earning potential of international sales can make high-risk credit card processing seem more appealing.
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Billing Flexibility
Processors can limit the amount of revenue standard merchants generate via subscription billing. They can also set limits on the types of products or restrict high-ticket sales. In contrast, high-risk processors can allow for increased flexibility in billing practices.
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More Business Types
Credit card networks see a long list of products and services as too risky for standard merchants. One can prevent many travels, telemarketing, gaming, tobacco, and pharmacy businesses from working with a traditional credit card processor. However, with a high-risk merchant account, you can sell products in just about any merchant category code (MCC).
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Higher Chargeback Threshold
Standard merchants must keep their chargeback issuances within a narrow, acceptable range. Otherwise, they could lose their ability to process payments and end up on the match list. Merchants who use a high-risk processor can often maintain a higher chargeback ratio without risking the loss of their processing. It can be appealing to merchants who have a higher-than-average chargeback liability.
Conclusion
Chargebacks are the most common type of chargeback in high-risk credit card processing. You might not even be able to avoid every conflict, but you may make efforts to reduce risk and preserve more of your cash. Companies that are specialists in the payments business can assist you. These firms can assist organizations in assessing and diagnosing their chargeback risk. They can assist merchants in assessing and managing issues that contribute to increased risk. Is it your intention to pursue high-risk credit card processing? Or has a MATCH List placement reduced your options? Whatever the case may be, the top firms can assist you in getting back on track!
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