Offering your customers the option of paying by credit card is essential for your business. Especially in the case of online businesses, paying by card is the only option that customers have. Third party agencies offer business processing services including credit card processing to businesses. But here’s the catch. While everyone is willing to endorse low-risk businesses, venture businesses don’t get as much support from business service providers to help them open a business account.
They are offered only by specialized service providers.
Are you a high risk trader?
You qualify for these services if your business is classified as a high-risk business. Online businesses that fall into this category generally include those in the following areas: adult entertainment sites, those related to health and beauty, such as websites that sell weight loss, skin care, muscle enhancement products and other similar products, including nutritional and beauty supplements. Detective services, online dating sites, lottery sites, sports consulting sites, etc. are some other examples of this business. These businesses are inherently risky for obvious reasons.
These types of business services are also necessary for high-volume businesses, as they are more susceptible to credit card fraud. Small businesses with low sales volume are also considered because they cannot afford the necessary fraud detection tools.
The individual characteristics of the business / business owner are also important. Businesses that are not accredited to local business bodies, those with poor or inconsistent credit histories, or where the business or owner has been blacklisted for any reason are considered high risk.
If you are a merchant, it will be difficult for you to obtain a merchant account, which is crucial for allowing credit card transactions. Therefore, you need the help of merchant service providers that are specially tailored to the needs of these types of merchants.
High Risk Business Services: What to Expect
These types of business account providers charge huge fees for their services. The fees for business services are much higher than those charged to regular businesses.
To set up a regular business account, setup fees are often negligible or even zero. In the case of these types of business accounts, their high fees start from this point and include very high processing fees.
However, considering that enabling credit card payment is crucial to the success of your business, you have no choice but to give in to the demands of merchant service providers. But, as always, you need to choose your service provider wisely and make sure they are not misleading you.
How to choose a high-risk business service provider
Ask around and choose a provider with a well-established reputation in the field and who is well spoken of for the variety and quality of services offered.
Choose someone who meets your specific needs. For example, depending on the nature of your business, you may need 24×7 support.
Insist on a breakdown of fees and don’t sign up unless you’re convinced of the fee structure.
High-risk processing services may not be a very pleasant option. But you can’t escape it if you want to be successful in your business.
