High Risk Merchant Services for Small Business
High Risk Merchants
What’s a high risk merchant? Are you a high risk merchant?
High Risk merchants are businesses that sell things that payment processors, credit cards and banks consider to be risky. Generally if you’re selling something in the list below you are considered a high risk merchant. Quite simply these things either have (1) high chargebacks and refunds or (2) it is an industry that makes people squeamish and borders on the illegal. We want to explain how to (1) make your business less of a risk, (2) what you need in your website and (3) how to find the best deal for payment processing.
If you are a high risk merchant you need to run your business very tightly. Here are the things that you need to do:
Monitor chargebacks carefully work to reduce them
What are Chargebacks? How is this associated with being a high risk merchant? Chargebacks are when your customer requests a refund from their credit card because of a problem. Normally this means that your customer requests their bank to give them a refund. You, the merchant, can dispute the customer’s request. One of the best ways is to make it easy for customers to get refunds. Your refund policy needs to be clearly visible in your website. You need a telephone number for the customer to request a refund and call. You will need fraud protection technology to help reduce fraudulent purchases.
How to find the best deal for payment processing as a high risk merchant account
You need to shop around. Be upfront with your payment processor and tell them about your business. Explain how you have taken steps to reduce chargebacks and fraud.