In the merchant industry, certain types of businesses are considered “high risk”, which can make allying with a credit card processing company a challenge for owners. Regardless of the type of online business or store you own, employing an adequate payment gateway provider is necessary to ensure each transaction made in exchange for your products or services is done safely and thoroughly. Despite the difficulty some business owners have locating high risk payment processing companies that works for them, many that offer fair rates and helpful benefits to clients are available.
Associated Difficulties
Why certain businesses are considered high risk while others aren’t is a complicated matter, and depends on a variety of factors. If you have bad credit or operate in an industry where customer chargebacks are commonplace, a credit card processing company likely won’t approve you if they’re adamant about sticking to tried and true industries. Antique dealers, event ticket brokers, collection agencies, electronics suppliers, vacation rental companies, investment firms, and many others, are examples of the types of businesses and industries providers typically avoid. If you fall under the category of a high risk business, you may be experiencing difficulty finding a provider who will work with you and offer fair rates and benefits. Fortunately, there are high risk payment processing companies who aim to provide personalized solutions for an inclusive array of businesses.
Advantages for Owners
Companies that are designed to accommodate high risk businesses usually offer multiple benefits, such as chargeback prevention. High risk companies are often listed as such because many businesses in their industry are known to garner a large number chargebacks. Chargebacks involve returning funds to a customer’s bank account or credit card due to an error on the part of the merchant. In many cases, chargebacks are issued because of authorization and processing errors, or incorrect billing amounts and duplicate charges. In other instances, a customer may file a chargeback because they never received the products or services they purchased, or were charged without appropriate authorization. Depending on the frequency, acquiring banks will often reprimand merchants for chargebacks by demanding penalties of anywhere from twenty to over a hundred dollars per chargeback issued.
Allied Wallet offers high risk processing services to many different types of clients. To learn more about what they can do for your business, visit Alliedwallet.com.
