Businesses today need to be able to accept all the forms of payment that they possibly can. That includes credit and debit card purchases, but in order to accept these types of payment, the business must have a card processing service in place that they can trust. But for businesses that are ‘high risk’, it can be harder than usual to get good credit card processing.
The reason is simple – certain businesses are more at risk for fraud than others. And in these cases, card processing services may actually end up refusing to even offer their services to a business. Those that do may charge higher than normal fees or have additional charges associated with every purchase. As such, those who operate high-risk businesses may need to look more closely at which company they trust to handle their card processing.
What Is A High-Risk Business?
While there is no exact definition of what a high-risk business is or what qualifies one as such, a few different examples can help you see what this is generally considered to be:
• Businesses operating in high volume industries
• Businesses that do regular business with those with bad credit or no credit
• Online auction stores
• Traditional auctions
• Pawn shops
• Buy here, pay here credit businesses
• Debt collection services
• Amazon or Yahoo stores
• And more
Essentially, if the odds of fraud occurring are higher with your business, there’s a good chance that you may be classified as high risk. If that happens, you’ll have a tougher time finding the card processing service that you can really trust.
What Should You Know?
So what does this mean to you if you’re a high-risk business? Essentially, it meant that you need to take the time to choose your merchant account service more carefully. You should always shop around when finding card processing service providers, but for high-risk businesses, it’s even more important. Some things to keep in mind include:
• Ease of approval
• Support from your provider
• A range of payment types you can accept
In other words, you’ll need to make sure that you are using a card processing provider that offers you everything you would expect from a provider if you weren’t high risk. There are companies that specialize in providing solutions to high-risk businesses, and finding them and trusting them with your card processing is well worth doing.