Payment processing is vital to the success of any company today, especially businesses classified as high-risk merchants. This blog gives ten tips on how to protect your payment processing accounts.
- Monitor your monthly processing volumes. If you’re going to significantly exceed the approved processing limits, call the acquiring bank or your payment processor and let them know the reason.
- If you expect a tremendous growth spurt, consider getting additional high-risk merchant processing accounts/ mids. Many companies that process substantial volumes of payments have more than one high-risk merchant account or several mids to diversify and safeguard the continuity of business operations.
- If you’re changing merchant account providers, ramp processing volumes down slowly from your existing account. If you suddenly close your account, the acquiring bank will get nervous and may decide to freeze your funds or hold your reserves.
- If you have average tickets that are going to increase to higher than normal levels, call the bank and let them know why. Banks hate surprises. As long as you let the bank know the reason for any sudden changes, there will be no surprises, and your payment processing can continue smoothly.
- Put your customer service number next to your company name on the billing descriptor. When customers view their credit card statements, you want customers to call you first with any questions, not the card issuing bank. Making it easy for your customers to contact you to request a refund or cancel an order will keep your chargebacks low.
- Provide superb customer service. Responsive customer service prevents chargebacks and builds customer loyalty. Everyone wants to be treated well, and you’d be surprised at how excellent customer service can rescue orders that otherwise would have been lost.
- Make it easy for your customers to return items if not satisfied. Particularly if you sell a lower ticket item, issuing a refund is easier and much less expensive than fighting a chargeback.
- Stay on top of your high-risk merchant account by reviewing reports and reconciling statements. It’s amazing the number of merchants who never look at their statements and then wonder what went wrong when they lose access to their offshore merchant processing.
- Implement fraud protection such as 3Dsecure. The internet is awash with criminals who are constantly seeking vulnerabilities in websites to exploit. Don’t give criminals the opportunity to attack you. Implement superior fraud protection, keep it up-to-date, and stay safe.
- Keep your bank informed of any changes in your way of doing business. Consider your merchant bank a vital part of your team. Payment processing is indispensable for your long-term business success, and your bank is a partner.
Payment processing is the vital lifeblood of your business, so plan to do everything possible to protect your business and yourself. You’ll discover the time and effort to implement the above suggestions will be well-spent.
Customers love the flexibility and convenience of using credit/debit cards to pay for a product or service online. Therefore, if you are involved in any form of trading over the internet, you must have a merchant account to make processing card payments on your site or app easier. However, if your online business has a large volume turnover and is greatly exposed to chargebacks or fraudulent threats, it may be considered “high risk.”
Operating a business that is categorized as high risk implies that most of the banks and payment processors will be unwilling to deal with you (though even if they do agree to grant you a merchant account, you can expect their fees to be prohibitively expensive.)
So what to do?
Well, there are many merchant account providers that specialize in helping high risk businesses get a merchant account for their payment processing needs. Whether you need an online poker merchant account for your Texas Hold’Em gaming site or your online pharmacy, a high risk merchant account provider can help you get a processing solution to enable credit card transactions for your online business.
Selecting the right service provider
- Ask around and choose a provider with a well-established reputation in the field and who is well spoken of for the range and quality of services offered.
- Choose someone who caters to your specific needs. For instance, depending on the nature of your business, you may require multi-currency or 24/7 support.
- Insist on a breakdown of the fees and do not sign up unless you are convinced about the fee structure.
Taking into account the ‘n’ number of factors when it comes to choosing the right high risk merchant service provider, merchants must conduct thorough online research to find the perfect service provider who can meet all of their payment processing requirements.
Since e-commerce businesses are becoming more competitive with time, business owners find offshore merchant accounts beneficial. This is mainly because there is no hassle to open an offshore merchant account. The usual requirements of having a business that has existed for a minimum of two years and making a security deposit of several thousands of dollars are not needed when an offshore merchant account is created. The only difference between an offshore merchant account and a simple merchant account is mainly the bank location, which for an offshore merchant account mostly resides in a different country.
Benefits of an offshore merchant account
- Offshore merchant accounts tend to have a cost-effective and hassle-free setup, merchants get better service, and there are practically no deposit requirements.
- Business owners are no longer bound to select a bank in one country only. With offshore bank accounts, they become capable of expanding their business worldwide. And with low taxes, it provides an economic advantage to merchants.
- It enables offshore credit card processing, and merchants can accept payments in multiple currencies.
- Offshore merchant accounts tend to place the business owner in a favorable e-commerce world. And as the bank does not exist in the same location as that of the merchant, it helps the business decrease taxes.
Some offshore banks and credit card processors do charge slightly higher processing fees and discount rates, however, when the merchant realizes the tax savings they are incurring by processing offshore, they discover they are far better off than if they had remained processing onshore. High-risk businesses, in particular, like online casinos, pharmacy and travel merchants prefer using an offshore high-risk merchant account as most domestic banks (US) decline these business categories, owing to their high volume sales, potential chargeback, and refunds, etc. Offshore banks tend to be more liberal with their underwriting policies, tax savings, and no sales volume restrictions.
Though e-commerce has been around for some time now, website owners still face difficulties in getting merchant accounts from banks and financial institutions because of the risk of credit card fraud. Fortunately, some internet merchant service providers are more than willing to support e-commerce businesses. These companies have a good understanding of the complexities involved in online merchants; whether they are low or high risk.
Type Of Merchant Account
There are two types of merchant accounts. The first one is where a business partners with a bank or other financial institution. The business applies for a merchant account; the bank verifies the credit history of the business entity and the type of business (low or high risk) that will be carried out over the website; the bank approves or rejects the application on that basis. The e-commerce business must comply with the rules laid out by the bank.
The other one is a high risk merchant account. As the name implies, this account works well for high risk businesses that may not get approved for merchant accounts otherwise. For example, if you own a poker site, obtaining an online poker merchant account from a financial institution may be extraordinarily challenging or extremely expensive. In this case, you are better off working with a high risk specialist.
Compare credit card processor’s rates
Invite quotes from five or more credit card processing services and compare their prices and features. The prices can vary based on the average sale amount per credit card transaction (average ticket size) and the number of transactions processed in a month. Whatever be the fees applied, they should be clearly mentioned at the start of the contract.
Whether you are hiring a low risk or a high risk credit card processing partner, you should take the time to do a comprehensive comparative study before making your final decision. Compare services rendered, rates charged, customer service, past records, etc. Get references from associates and ask questions freely. Switching credit card processors could be a cumbersome job. Get it right the first time around.
In this day and age, accepting credit cards as a form of payment for your business is an absolute must. For the average retail business, it is as easy as calling a merchant bank and requesting a merchant account. However, some businesses are classified as “High Risk” by processing institutions and are much more difficult to get a merchant account for and are typically more expensive.
A high-risk merchant is any merchant that has very poor credit and/or owns a business that operates in an industry that is known for having higher than average chargebacks and a higher chance of transactions being fraudulent. A few good examples of businesses that would be considered “High Risk” are as follows.
- Casino and poker sites
- Adult Services
- Online pharmacies
- VoIP companies
- Travel agencies
- Subscription-based businesses
The reason that processing banks are hard on businesses that are considered high risk is simple. If a business fails to meet its obligation to provide its customers with a service or if a business goes bankrupt and a customer demands their funds be returned to them, then the merchant bank is obligated to refund the customer out of their own pocket. All of the risks associated with processing payments are absorbed by the bank itself, and the bank just does not want to deal with that.
So, what options does a high-risk business have?
A business owner always has the option of not acquiring a high-risk merchant account and, thus, not accepting credit cards as a form of payment. Unfortunately, accepting credit cards as a form of payment is a must in order for a business to flourish. If you do not have the ability to accept a credit card, a customer is likely to just go to one of your competitors.
A more feasible option is to choose a merchant account service provider specializing in working with high-risk businesses. These professionals offer a complete range of high-risk merchant services, including high-risk credit card direct processing and high-risk e-check processing solutions. With their assistance, you can accept credit card payments in as little time as possible with a stable, safe solution with fair rates and favorable payment terms.
Businesses that are high risk, have higher chargebacks, potential for fraud and a higher sales volume fall into the “High Risk” category. Merchants with high risk businesses have difficult time getting accepted with acquirers and credit card processors. Many local merchant account providers are not willing to take the risk and are prohibited by local laws and regulations.
Businesses related to industries like Forex trading, online pharmacies, Nutra, replica products, gambling and casino providers, sports wagering, online tobacco business, online dating, computer hardware, software, debt services, hosting, and email services, etc. are all considered high risk. The primary reason for banks and credit card processors turning down these high-risk merchants is the type of business their involved in and the high sale volumes. Because these businesses are high risk, there is always a chance that turnover will be high, and the merchant account could be closed down due to this or high chargebacks.
Also Running an eCommerce business without a shopping cart is next to impossible. So, you need a high-risk merchant processing service provider whose services will enable you and your customers to process transactions online. With the internet fraud on the rise, make sure that your high-risk merchant account provider is also offering you online fraud protection with scam control and SSL encrypted servers so that you can process the payments without any worries. Automated recurring billing, online reporting, dependable infrastructure, 24/7 customer support, multi-currency processing, and major credit and debit card acceptance are just a few of the significant benefits that your high-risk merchant account provider should offer.
In conclusion, when you partner with a reputed high-risk merchant services provider, your high-risk business becomes capable of thriving, and this will help you generate bigger and better revenues.
When you are looking for ways to run an online business, take credit card payments and manage your money, an offshore merchant account is the best way to do so. Offshore merchant accounts offer an easy and reliable way to process low and high-risk businesses alike. Offshore merchant services such as credit card processing prove to be very beneficial if you have a high risk of chargeback.
Apart from this, offshore merchant accounts have numerous advantages. Offshore merchant solutions can include onshore e-checks bank transfers, credit card processing help you in increasing your consumer coverage and eventually, drive in more traffic for your business.
Also, being able to accept multiple currencies is a huge advantage while dealing with consumers from across the globe. This helps you in evolving your e-commerce business. Offshore merchant accounts set up in a particular jurisdiction that is targeted by your online business can prove to be exceptionally convenient.
Also, unlike domestic accounts, you have thousands of offshore banks available to choose according to your specific requirements. With thousands of worldwide offshore banks, you just need a thorough research and you are guaranteed to get the best deal that perfectly suits your requirements.
However, there are many people who think domestic merchant account are better but, on contrary to this, offshore merchant accounts integrate all the advantages of a domestic merchant account and being offshore they offer even more advantages. Offshore merchant accounts are practical and easy to acquire and are also great in terms of availability which is making them quite popular anda perfect choice for a new and experienced merchant alike.
The main attractions and benefits of IBC formation have catapulted the number of investors investing in offshore locations. Today the investors are attracted because of the lucrative financial benefits like currency diversification, asset protection, better wealth management and enhanced privacy protection. The offshore jurisdictions provide two types of business, one is IBC and other is LLC. Opening any of these companies can be a daunting task. So taking the assistance of an offshore IBC service can be a great help.
IBC is an acronym for International Business Company or International Business Corporation. It is a specific form of offshore company. The features of an IBC differ by jurisdiction but they generally consist of exemption from local corporate taxation, protection of the confidentiality of the IBC owner, flexible administration arrangements and more. When you hire a consultant for offering offshore IBC service, you will come to know in further details all the benefits of opening an IBC.
An IBC consultant will help you right from the start to finish. You will be assured the process of your IBC formation will take place in a modernized way. There are few rules to follow while opening an IBC. They will look into every aspect to make the process easy, simple and quick. You will get all the support you need from them. They will also help you if you want any information related to high risk merchant accounts.
Read more at : http://www.confidentialbanking.com
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Whether it is starting a new career, traveling, or spending more time with your family, retirement is a golden opportunity to enjoy things that make you happy. And you can grab this opportunity by hiring the expertise of a professional offshore financial planning service. They will help you in the process of making financial provisions for retirement prior to reaching the retirement age.
It is important to hire an expert as your retirement plan is very crucial. You just can’t trust anyone to create or manage it. And when you hire offshore financial planning service, you will get personalized services tailored to your changing business and economic needs. You will need to get expert advice, you will need a professional ready to give you the easy access to different available retirement plans.
So are you ready for retirement planning? Hire a professional company to take you through the entire process.