Florida, United States, November 27, 2023 – Very few businesses today can succeed without an effective means of accepting payments. It does not matter if your business is eCommerce or if you’re a local brick-and-mortar retailer, cash is not necessarily the preferred choice. To keep customers happy, merchants will want to offer additional payment methods to keep up with the public’s demands and industry trends.
Usually adding credit card processing is a simple process unless your business is classified as high-risk. Cris Carillo, co-founder of the high-risk payment processor Allied Payments, explained that being high-risk does not preclude accepting credit cards, but it can “throw a monkey wrench in your strategies to add credit card processing” as an alternative payment option. While nearly all eCommerce statistics show consumers gravitating toward online shopping, this only emphasizes the importance for businesses to offer credit card payments, especially in the case of online higher-risk merchants.
What Aspects Make Your Business “High Risk”?
Payment processors can view anything from the types of products sold to the owner’s financial history as reasons a business might be at high risk. Many underwriters might feel these factors automatically disqualify applicants, but some payment processors might be set up to absorb this risk. Businesses such as travel services and custom furniture makers that accept payments immediately but do not deliver the product or service until later on are examples of problematic business models for payment processors.
Sector, Area, and Clientele
Some industries are deemed riskier businesses than others. From the manner a company accepts sales to the track record of the business, these can all be considered causes for concern. Many times the product or service sold can affect the perceived risk, ultimately making the payment processor decide if they want to become involved. These types of business include internet dating sites, online auction sites, and marketing services that do not provide guaranteed results, but can experience higher than normal returns and chargebacks.
Payments Accepted Online
Companies that accept online payments generally experience higher levels of fraud and chargebacks than retail locations. This problem affects most card-not-present merchants offering mail-order products and services. High-risk businesses can be found everywhere on the spectrum, from financial services to supplement companies. Most exist online, making card-not-present more costly than swiped transactions where the customer and merchants meet face to face.
Common Reasons to Need High-Risk Processing Solutions
Business Track Record
Merchants that have experienced a high number of chargebacks in the past, regardless of the reason, will generally be classified as high risk. Fortunately, there are a number of programs offered by processors for merchants to enter that can help reduce chargebacks and improve the standing of their business.
Credit Scores of the Signers
Personal credit scores have an effect on merchant services, mainly because processors are concerned about the likelihood of merchants repaying their processing fees. To help prevent this from becoming an issue, keeping personal credit in check is essential. Reducing debt levels, paying off old debts, and staying on top of future debt is the best way to positively impact personal credit.
Business Owners Experience
The length of time a merchant has been in business is another factor that many small business owners do not realize. Newer or startup companies might need to prove themselves before they can receive preferred rates from a merchant provider. The longer a business has been operational, the more comfortable service providers might feel knowing their track record.
If your business is deemed as a high-risk organization, it does not mean you can not qualify to accept credit cards. What it does mean is that there is something, either in the owner’s history or business history that is preventing them from being approved for traditional services. If this is the case, merchants can find payment service providers that will be willing to work with them and offer high-risk credit card processing services to match their needs. Being high-risk does not preclude a merchant from accepting credit cards, it just requires the business to find a suitable partner.
Contact Details:
Name: Cristopher Carillo
Company: Allied Payments
Email: info@alliedpay.com
Website: https://www.alliedpay.com/
Address: 378 Northlake Blvd, #134, North Palm Beach, Florida 33408, United States
