The term high-risk should remind of many reasons for dependence on payment gateways for credit card processing. However, it is better to get into detail of every reason that why merchants with risky businesses need support of credit card processors. Why they cannot do it without any third-party support.
Many aspects prove that for a business from a risky industry, it is never a cake walk to process its credit card payments. Many annoying factors cause issues during the online money transactions. The merchant has to solve all of them and for that a payment gateway proves a big help. Here are several points that prove the practical significance of payment gateways for the high-risk merchants.
Merchants need a merchant account and payment gateways help them get it
High-risk merchants need a merchant account where they receive the money paid by the customer’s credit card. The same account is used to make refunds to the users. But the traditional banks never approve any such account to the business owners. The reason is clear, yes, the high-risk nature of the business. Such commercial entities are prone to chargebacks, fraud etc. and banks cannot afford to take risk for such businesses.
Payment gateway companies usually have a vast network of banks that provide merchant account. These are known as acquirers and they may exist in other countries. The businesses get high-risk offshore merchant account in these acquiring banks. The payment gateway not only provides the merchant account but also becomes the bridge of credit card processing. The money travels through the payment gateway. In fact, the payment gateways bargain with the acquirer to attain the most affordable per transaction fee.
Payment gateways ensure safety of customer’s money and financial data
Money received through credit card processing is always under the threat of fraud and hacking in a high-risk business. The payment gateways have smart technology backed-up by the tools of artificial intelligence. The system can spot suspicious customer accounts that can cause any sort of financial fraud. It is a big help for a business owner who continuously encounters recurring business threats.
A payment processing company ensures the merchant that it will make the money travel safely. From customer’s credit card to the business owner’s merchant account, the payment processing will happen safely and successfully. Security of money transactions is always the biggest concern for the high-risk merchants during online credit card processing. If you are looking for a safer credit card processing experience, EskayPay can help you. We have the best infrastructure and fraud detection tools that prevent fraud. Also reduce chargebacks through our chargeback management strategy that always works.
Payment gateway companies tackle the international laws on credit card processing quite smartly
As we know, high-risk merchants have international customers as well and also they have off shore business accounts. In this situation, it can be very complicated for a business owner to deal with numberless laws and regulations in different countries. Especially when it comes to risky businesses such as adult entertainment, IPTV, online casino etc. all countries have stringent rules.
The high-risk merchants pay the payment gateways to manage and handle all the legal procedures. It is not an exaggeration to say that credit card payment processing companies have a wider knowledge of laws than a high-risk business owner. Reason? The payment gateway companies serve to clients from different high-risk industries. They deal with the legalities practically for the merchants and that is why their knowledge quotient is much bigger.
Payment gateways facilitate credit card processing in multiple currencies
To flourish faster and to earn big, high-risk merchants have to expand their business to many countries. But the natives of a nation can never pay in a specific currency. The merchant has to make arrangements to get paid in the money type popular in the country of the customers. That is not possible without the support of the payment gateway companies. The credit card processors have a wide network with acquirers and credit card companies, which helps create the required infrastructure.
The credit card payment processing companies give a platform to the merchants to do transactions in multiple currencies. It helps the businesses reach to the global market and sell their products and services to more and more people. This in turn brings more money and more profit for the business owner. For a high-risk company, everything is already expensive. Whether it is about getting a license or getting a merchant account, the applicable fee and charges are always big.
Conclusion
The points mentioned above clearly mention that high-risk merchants need payment gateways for many reasons. They are the bridge for safety, credit card processing and also reduced chargeback status. Above all, getting a high-risk merchant account, which is normally a difficult thing becomes simpler with the assistance of a payment gateway company. If you are high-risk merchant and looking for a suitable payment gateway, come to EskayPay.
We have served to all high-risk industries and have a vast network with off shore acquiring banks. The businesses with risky industries have a big potential to earn a lot but they just need a predictable atmosphere. Safer online credit card processing can be the first step for it.
Tags : International Payment Gateway, High Risk Merchant Account, Payment Gateway Provider UK