Businesses such as online drug stores and pharmacies, multi-currency sales, finance brokers, and bankruptcy attorneys are typically known as high-risk merchants. If you own a high-risk business, finding a reputable, secure merchant account provider can be quite challenging and time-consuming. The reason being that these businesses operate in a high-risk industry and exemplify an elevated risk of customer fraud or financial failure to the provider. Just like any low-risk business, however, the high-risk ventures also require reliable internet merchant onboarding services to accept credit and debit card payments, enable faster transactions, and retain their customers.
Banks usually provide low-risk businesses with a range of credit card gateway services to make payment processing seamless and easy. But since high-risk businesses have a high propensity for frequent chargebacks, customer fraud, and load balancing, most processing companies consider them to be dicey and thereby refuse to offer payment solutions to them. And that’s where third-party high-risk merchant account providers come into the picture. They work directly with the financial institutions so you can begin accepting payments through credit or debit cards instantly.
Below are some critical questions you should ask before hiring a merchant services partner for your business.
1. Do You Offer Chargeback Protection?
High-risk businesses typically experience a higher number of chargebacks, which have the great potential to stamp your online commerce with ‘risky and non-trustworthy’ labels. There’s no way around it! Between choosing to combat them and pretending they don’t exist, chargebacks are a huge risk factor for businesses in terms of cost, reputation, and time. For this reason, you need to find a reputable, fully-insured provider that offers chargeback protection, helping you prevent and avoid chargebacks. These days, most cardholders are taking the fraud and non-fraud disputes in their own hands and leaving the merchant out of the resolution process. Such practice makes merchants lose out on the chance to handle and resolve the user’s problem before it turns into a potential chargeback. Additionally, merchants can’t even determine either or not the fraud has happened.
So is there any 100% bullet-proof method to deal with chargebacks?
While some payment protection providers claim guaranteed, 100% preclusion of chargebacks, unfortunately, that’s not the case. But you can substantively reduce about 50%-60% of chargebacks, recover profits, and reduce risks. Your processor should be able to:
- handle and manage your e-commerce solution;
- retain your sales revenue by combating chargebacks;
- provide dispute assistance and fight online fraud;
- identify criminal fraud, friendly fraud, merchant error, and chargeback liabilities;
- eliminate chargebacks before they occur;
- send out 24/7 chargeback alerts; and
- process e-payments securely and effectively.
2. Do You Provide Dedicated Customer Support?
In this perpetually growing e-commerce market, every business that aspires to be popular in the industry, whether they are high-risk or not, has to make customer service its top priority when it comes to online payments. Having said that businesses operating in the high-risk industry or just labeled as high-risk need more attention. Fraudulent activities can put your customers’ critical information at risk as well as freeze deposits. Besides, an overabundance of chargebacks could not only damage your bottom line but also terminate your business merchant account. That’s why you need a fast and responsive merchant provider that provides around the clock dedicated customer support and reliable payment processing solutions to grow your business.
Ask them the following:
- Will you provide a dedicated account manager with a direct point of contact?
- Do you offer 24/7 technical support?
- Do you offer an automated or open ticketing system for requests/customer service?
- What’s your average response time?
3. Do You Accept Different Payment Types?
A great high-risk merchant account provider offers both classic as well as modern payment gateways and also accepts all major credit and debit cards. This method ensures that customers can choose one of the payment methods given on the site, so they don’t have to go offsite to make payments. Authorize.net is an example of a traditional payment gateway, while PayPal is one of the finest examples of the modern technique. Rather than solely depending on credit cards, it’s crucial to consider other payment gateways like prepaid cards, e-wallets, cash-on-delivery (COD), and gift cards that your customers might use for online payments.
4. Do You Offer Fraud Detection/Prevention Tool and Other Security Features?
Online fraud is inevitable, but that doesn’t preclude the consideration of using fraud prevention tools and implementation of encryption standards to secure payments, customers’ data, and your business information. And don’t forget, it’s called high-risk for a reason. Whether the fraud or thread trigger is completely friendly or outright criminal, your business always attracts cybercriminals and fraudsters. Beyond the typical features check, make sure your website follows all the critical security protocols like firewalls, SSL certificate, HTTPS, and many others to protect yourself against potential threads and restore online security of your business effectively. With the advancements in e-Payment technology, gateways like CyberSource help businesses safeguard their clients’ data, identify suspicious activity, and handle large volumes. The advanced encryption standards such as Point-to-Point Encryption (P2PE) and Tokenization add another level of security and are difficult to exploit.
Looking for a reliable, secure merchant provider for your high-risk credit card processing business? We’ve high-risk experts standing by plus dedicated account managers who can provide you with these features and services. For a consultation, call us @ (877)720-0022 or drop a line at [email protected]