In 2020, processing online credit card transactions is important for any business. Those who want to add this to their business need an internet merchant account, which allows businesses to use a payment processor to conduct transactions with their customers. By managing the transfer of funds between accounts and providing the hardware and services that make transactions possible, internet merchant account providers are an essential part of modern businesses.
However, some businesses are considered “high risk” for credit card processing, which usually means that it is their particular industry that is considered to be high risk for having more customers dispute payments. Other factors can potentially increase a business’s risk, such as a shaky financial history.
To avoid being considered high-risk or cope with being labeled high risk, read on to learn more about it and how to secure an internet merchant account more easily.
Why get a Merchant Account?
Online transactions are becoming the norm. People want to use credit, debit, ACH, echeck, and other eCommerce options to pay for goods and services. It’s a particular necessity during the coronavirus lockdown, but even when that someday ends, people will have made the transition to more virtual transaction methods, and they will expect online businesses to provide them.
Businesses large and small need internet merchant accounts and may be wondering how being high risk for credit card processing could affect them.
What Being High Risk Means
Being considered “high risk” for credit card processing usually means that a business is in an industry that has a higher than average likelihood of having transactions disputed. These industries include health, timeshares, pharmaceuticals, and gambling industries, among others. Transactions are more likely to be disputed, which means a greater chance of a chargeback.
Risk could also come from financial history, such as in a business owned by someone with bad credit or a bankruptcy on file from within the last 10 years.
Choosing a merchant account provider
This is why it’s important to choose an internet merchant account provider that will work with high-risk clients. Many will still provide their payment services no matter the client’s industry or risk level, so assessing risk and then choosing a vendor willing to offer services can prevent having rates hiked or services denied.
Businesses that are considered to be “high risk” for credit card processing may want to mitigate risk, but it often comes down to what the internet merchant account provider offers. Since these accounts are essential in 2020 and beyond as people become accustomed to online transactions, finding a provider who works with clients in high-risk industries is essential.
Visit Charge.com or call (888) 924-2743 to view products for internet merchant account services for businesses at any risk level.