4 Things You Should Know About High-Risk Merchant Services

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4 Things You Should Know About High-Risk Merchant Services:


Merchants accept various payment methods from their clients including cash, credit cards, and debit cards. However, credit and debit payments are complex processes requiring the help of advanced processing systems.

However, providers of these systems distinguish between high and low-risk merchants. More specifically, they offer different terms to these two categories of merchants. Unsurprisingly, they subject high-risk merchants to strict underwriting conditions.

Knowing these conditions is critical to helping you select the most suitable high-risk merchant service provider. Here are 4 things you should know about high-risk merchant services.

  1. The Rates & Fees
    One of the conditions placed on high-risk merchants is a high rate of interest. Therefore, it is likely that you are paying a higher rate of interest than most merchants are.  The fees charged on your account can be high as well. Unfortunately, some payment processing service providers will charge you excessively for high-risk merchant services. Go online and check the interest rate and fees charged by various providers before you settle for one of them. Ask for a breakdown of all the fees charged to your merchant account. Make sure that there are no hidden charges on it.
  2. The Payout Times
    Fraud is possible when it comes to the provision of payment processing services to high-risk merchants, but it rarely happens. It is uncommon because of an intense level of scrutiny by oversight agencies. However, delays in payouts are common. Contact your high-risk merchant service provider and ask about their payouts. For example, is it weekly, daily, or monthly? What is the minimum threshold for a payout if it exists? Knowing these payout times helps you plan judiciously so that you can maintain a healthy level of liquidity. You can also talk to other merchants so that you can confirm these payout times with them.
  3. Level of Integration
    People use different kinds of credit and debit cards. For example, some companies add additional security features to theirs while others do so after a while. Does your payment processing system recognize these differences? Change your service provider if it does not. It is worth noting that e-commerce is a lucrative industry. Is it possible for consumers to access popular shopping cart applications through your payment processing system? Is there an alternative to pre-made plugin modules? One alternative could be the provider’s gateway integration API guide. Select a company that offers your customers convenience through comprehensive integrations into the payment processing systems offered to merchants.
  4. Customer Support
    Payment processing systems breakdown leading to interruptions in cash flows. These interruptions cost you loads of money because customers cannot pay you for your services or products. Losing customers is also possible if these breakdowns are frequent. The only recourse you have in case these breakdowns happen is to call the support staff of your provider. Alert them so that they know that a problem exists. Then ask them how long it will take to fix it and the possible alternatives that exist in the meantime. However, asking these questions and alerting them is only possible if they have a responsive support staff. Do you know how responsive they are? Find out before you take up their offer.

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