Every business that wants to succeed in today’s highly competitive world must have an online presence. They must be able to make the most of that presence by being able to process payments and use e-commerce to fire up the sale. This promotes the building of customer loyalty with new clients. This means they need credit card processing services. However, not every business will find it that easy.
The truth is that shopping for a good deal is a very different experience between businesses, especially if one is considered generally high-risk and the other isn’t. Merchant processing fees can vary enormously between providers as well, meaning each situation has to be approached differently to find the best business solution.
Why Are Fees Different?
Fees can differ for a variety of reasons but there’s one particularly common reason that sets different types of businesses apart. There are certain businesses that tend to be a higher risk for a merchant account provider to service. This can be because of smaller profit margins, more work, chargebacks, and fraudulent purchases; leaving them to absorb the difference after reversing the transaction.
If a business is in a general industry that is considered to be “high-risk,” their fees are going to be higher.
What Is A “High-Risk” Business?
A high-risk business is any business that is susceptible to fraud or is known for having charges reversed (chargebacks), or has a high level of e-commerce reversals online. Every reversed charge costs the company money and enough of these combined results in a merchant account provider losing money each time.
There are many different industries that fit this mold and it is entirely possible that an industry that is acceptable in one provider’s estimation will be considered high-risk by another.
Here is a short list of some particularly high-risk industries:
Membership websites of all types
Any business selling alcohol
Any business even remotely resembling MLM
This doesn’t mean they can’t open a merchant account – only that it’s going to cost them more and will take more effort to find someone who will work with them. This is the exact same niche that HighRiskSolutions.com prides itself on working in.
There are solutions for businesses who need help in getting their merchant processing account setup so as they can accept credit card payments and expand their business. Any business burdened with the problem of being considered high-risk because of their industry should contact HighRiskSolutions.com. See what they can do to get you a merchant account set up so you can process credit cards. Finding the right provider can be a challenge but doing so makes all the difference in helping your business grow.