In the eyes of charge card processing companies, a company is either considered normal risk or dangerous. Normal risk level businesses can seek bank card processing from just about any company in the industry and can receive the best rates available. If your online business is called a “heavy risk”, you can expect to pay higher bank card processing fees and may even find it difficult to obtain a processing account all together. This can be a horrible headache that business owners face much too often, so here’s what you should know about being considered a riskier business and getting processing:
Risky businesses generally have a lot of card chargeback requests from customers, and accept card-not-present transactions like internet or phone sales. Some kinds of industries themselves create a business to get considered higher risk, like gambing or cafe websites, auctions, adult services, or telemarketing.
If you submit an application for visa or mastercard processing and have denied as being a risky business, don’t despair, make sure you understand the situation and strive to repair it. While not all processing companies will accept an increased risk business, there are numerous that target high risk payment processing since their primary subscriber base. Keep in mind, a high risk business means you spend higher rates for accepting cards, but a minimum of it provides you with an opportunity to weigh.
If you’ve recently been processing cards for quite some time with your business and so are just looking around for better rates, your quote for processing rates is based regarding how long you might have 99dexhpky running a business and how many chargeback requests your prospects initiate among other things. When you have a small number of chargebacks, you may then receive better rates compared to a heavy risk business who also gets a high amount of chargebacks. Some charge card processing businesses that work together with high risk businesses need a reserve account, with money available in case of fraud or chargebacks. The quantity of the reserve account or whether it be required or otherwise not depends on the company you’re working with.