All businesses, especially those operating in high-risk industries, need to choose a high-risk merchant account provider that is right for them. It could be a crucial factor in their success, which is why businesses in adult entertainment, e-commerce, and online gambling can’t survive without them. But what if you’re new to the term? What exactly is a high-risk merchant account? Let’s look at its definition.
As its name suggests, a high-risk merchant account essentially lets a business securely manage transactions and accept all credit card payments. However, what makes them stand out from normal merchant accounts is that they have no qualms about working with businesses in high-risk industries. That’s what makes them so crucial for these businesses. So, how do you choose one? It’s simple. Here are some of the key considerations for selecting high-risk merchant account providers:
1. Industry Knowledge and Experience
The most obvious and first thing to consider would be the industry knowledge and experience of the high-risk merchant account provider. When you’re working with one, ensure that they specialise in providing services to businesses in high-risk industries. They will have the know-how and the expertise to handle all the complexities and challenges associated with your industry. That will allow them to provide tailored solutions designed for your business.
2. Options for Payment Processing
Having multiple payment options is always going to be a bonus, so it is another key consideration that you must pay attention to. Ideally, you want to work with a high-risk merchant account provider that supports an extensive range of payment options, which include e-checks, debit cards, credit cards, and ACH payments. Working with a merchant account that offers diverse payment options and serves high-risk businesses is like striking gold.
3. Fraud Prevention and Risk Management
Any business operating under the umbrella of a high-risk industry needs to prioritize fraud prevention, and that means checking out potential merchant account providers who have effective measures for that. Look for and identify essential security features like address verification systems (AVS), tokenization, and encryption since they are vital for safeguarding sensitive client data.
4. Fees and Pricing
As a business owner, whenever it comes to obtaining a new service, you always look at the fees and pricing. That same theory applies to working with a high-risk merchant account. However, be wary of the age-old adage “You Get What You Pay For, “which means that going after the cheapest option may not always be the best thing for you.
In general, you would be lucky to find a high-risk merchant account provider offering you discount rates, and if you find one that does, it should signal a red flag for you. When trying to negotiate a fair deal with merchant accounts, you need to look for their setup fees, monthly fees, transaction fees, and any additional charges. If they have a transparent pricing structure, it will work out to your benefit.
Selecting high-risk merchant account providers is more challenging and complicated than it may seem at first, but you will need to consider several factors that are crucial in the decision-making process. Your priorities should be on their experience and expertise, payment processing options, fraud prevention, risk management, and pricing structure.
Keep in mind the fact that every business has unique requirements, which is why you must focus on finding a high-risk merchant account provider that specialises in your specific niche. If you’re still struggling to find one, you’re in luck; get in touch with us today.