In the ever-changing world of technology, our population has become more reliant on using credit and debit cards in preference to cash when making purchases. Some companies may even refuse the latter entirely, opting for a cash-free system for various reasons. This has led to the need for credit card payment processing companies who allow your business to effortlessly accept credit and debit cards, whether it be online or in person.
Finding an online merchant account provider seems like a simple concept. However, there are assessments to be done when financial institutions consider providing your business with certain payment solutions. The biggest factor to consider is what risk your company poses to the bank in terms of stability. There are influences in certain industries that place companies into the dreaded high-risk business category. If you are one of those companies, you may feel slightly dejected. Don’t! This is not a death sentence for your company. There are companies that specialise in high-risk payment processing solutions and that will help you along your journey to credit card profitability.
Categorising High-risk Merchants
Financial institutions all hold their own set of standards regarding what they deem high-risk businesses. Because of this, it is never a cut-and-dry process. Your company needs to be evaluated and all facets of your trade considered before a bank will decide on your risk value.
There is, however, one rule of thumb that you can almost guarantee will place your company in the high-risk category. Card-not-present transactions, although becoming increasingly more essential, will put your business on a one-way street to becoming a high-risk merchant. Types of companies that operate using these transactions include all eCommerce businesses, Forex market merchants, cryptocurrency traders, the online gaming industry, and travel companies. These are just to mention a few; the list is extensive.
Essentially, there are two main criteria used in risk assessment: chargebacks and fraud potential. If there is a considerable probability that your business could be susceptible to fraudulent transactions, this could lead to a high-risk classification. Friendly fraud is also a large factor to consider when looking at chargebacks.
How to Choose a High-Risk Merchant Account Provider
There are various aspects to consider when trying to find a merchant account provider suited to your business. The go-to response for most companies is to select the cheapest provider and hope for the best. But remember, cheaper isn’t always better. Ideally, you need to find a payment processor that gives you customised services and offers more than just reasonable fees.
A merchant account provider without a support structure is going to leave you feeling frustrated and helpless. Your service provider is your partner. They need to treat you as a unique entity, and not as every run-of-the-mill merchant. You should feel confident that the service you are going to receive from them will carry you through your contract comfortably. This is sometimes more important than the fee structure. You cannot put a price on this type of security.
We choose Octapay!
As much as you want your company to succeed, so do they. Octapay gives bespoke services to all their clients, understanding that each business is different. Your work becomes their work, and the growth of your business is their number one priority.
They are about people.
With over 15 years in the high-risk merchant account sector, they encourage their clients to lean on them, guiding them into a profitable partnership. Their insight into the high-risk industry is unparalleled and invaluable to any company looking to open a merchant account.
Why don’t you chat with one of their friendly experts? They may give you insight that you hadn’t considered yet. They may also help to put your mind at ease about the journey you are about to embark on. Give them a call: +44 114 299 8909.