Are you having a high charge-back rate and online frauds? Is your e-commerce vulnerable to credit card fraud? Is your payment gateway application turned down by many payment processors?
With the number of growing e-commerce platforms, the chances of mishaps are also increasing. People encounter more frauds than ever before. Merchants who are planning to venture into the e-commerce market need to be more cautious, as this will directly affect the growth of the business. What is more challenging is the number of charge-backs or refunds asked by the customer. All these flaws are there to sink your ultimate business. But there are solutions, as you already took the high road, you must have a high-risk merchant account. This will keep your journey smooth and long-lasting.
Traditional Vs high risk merchant account?
A merchant account enables merchants to have payment processing on their online platform. Whether it’s small, medium, or large every enterprise needs a medium to accept payments.
Merchant account providers broadly classify the businesses into two categories. I.e. High-risk and low-risk industries. This classification is done based on the nature of the business you are doing. If your business encounters too many charge-backs, online frauds, legal restrictions, then your business is in the high-risk category.
If the merchant has a lesser no of charge-backs, low online frauds, and minimal legal restrictions then the business is in a low-risk category. Also, the business reputation and merchant past credit score play an important role in deciding industry type.
Why is this categorization important for banks or other financial institutions?
The answer is very simple, they only provide payment processing services to those merchants who can profit them in exchange for their services. If merchants incur a huge amount of frauds and charge-backs, then in the long run they turn out to be a liability for them. Banks and financial institutions only take reasonable risks. And accept applicants from low-risk industries, therefore they categorize industries into low- and high-risk industries.
Why do you need a high-risk account?
If you are an online merchant who belongs to a high-risk industry, then you need a merchant account for a high-risk gateway.
A high-risk merchant account allows:
Smooth payment processing
With a merchant account, you can easily accept payments via integrating a payment gateway to your website. Customers paying through credit or debit cards prefer fast services. With all this, you have a chance to target a global audience through a range of payment methods.
Protection from online Frauds
Merchant account providers ensure that proper security measures are taken while customers enter card details. This adds a layer of secure payment processing to your online platform.
Charge-back minimizing tools
Many payment gateway processing providers allow merchants to reduce their chargeback ratios. They provide effective tools which help merchants to improve their customer service, resolve customer complaints and product or service loopholes.
With all these perks come along some downsides as well. As a high-risk merchant, you need to pay higher than a low-risk merchant. That includes more processing fees, high account set-up charge, long-term contract, and in some cases a rolling reserve as well, depending on the degree of risk associated with the business. But with the right payment provider, you can negotiate your terms.
Seamless credit card processing.
With a merchant account, You can access High-risk Credit card processing. According to statistics, more than 70% of people in Canada, Norway, and Israel own credit cards. This trend will soon penetrate around the globe as e-commerce continues to thrive. Accepting credit card transactions can allow you to grow your brand internationally. This will provide an edge of customer satisfaction among your global consumers. Also, with a merchant account, you can easily accept payment from popular Card brands like Mastercard, Visa, and many more. Many merchant account providers allow you to have 3Ds and Non-3Ds payment gateway services along with a reliable merchant account.
How to get a tech-savvy payment gateway/merchant account?
There are a lot of merchant account providers in the industry but finding someone who can match all your high-risk business requirements is tough. Also Looking at high-risk factors, they may charge you extraordinary prices. You must find a provider who is an expert in all ins and outs of your business.
Eskaypay is the leading expert in the fintech industry. Providing High-risk solutions to merchants all around the world. Our team focuses on driving solutions for high-risk merchants. We approve all the unapproved merchants.
Eskaypay solutions:
- ACH payment processing
- Echeck payment gateway
- Credit card processing
- Multiple Payment Methods
Conclusion
If you are an online merchant and turned down by banks because of high chargebacks, frauds, and poor credit. You must have a High-risk merchant account for accepting payments. Any transaction without proper security is vulnerable to theft, which will affect your business credibility. You can easily get a merchant account from EskayPay. As we build lifelong trust with our customers.
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