Running a hard-to-place business and having trouble getting approved for a mainstream merchant account provider? Don’t worry — it’s something that many businesses like yours face.
It’s a problem that has a straightforward solution: look beyond the mainstream providers and instead work with a high-risk payment processor, which is specifically designed with high-risk businesses in mind.
The only issue is finding the right high-risk payment processor to work with. Quality and scope of service can vary widely, which makes ensuring that you choose the right one vital for unlocking the full benefits that these types of accounts can provide. We’ve put together a list of some all-important questions to ask, which should guide you in the right direction.
1. Do You Have Experience in My Industry?
Not all high-risk businesses are the same. As a general rule, it’s best to work with a high-risk merchant provider that has experience in your specific industry. You’ll typically find the verticals they work with on their website, so if you see yours, that can be a good sign that you’re dealing with a provider that knows what’s required for your specific type of business.
2. How do You Handle Chargeback Thresholds?
Exceeding chargeback thresholds is the number one reason why mainstream merchant providers suddenly terminate the accounts of high-risk businesses. When you open a specialty merchant account, you should get more than the ability to accept payments. The best providers offer chargeback monitoring tools that allow businesses to proactively manage account chargebacks. In addition, it’s worth asking what happens if you exceed the provider’s chargeback threshold — for example, will they terminate your account immediately, or work with you?
3. How Long Have You Been Providing High-Risk Merchant Accounts?
Longevity counts for a lot in the high-risk merchant account sector. While newer companies can offer what appear to be favorable rates, there’s no guarantee that they’ll still be in operation six months down the line, which at best means you’ll have to go through the process all over again and, at worst, could severely impact your ability to operate. The best companies have a long history of providing high-risk merchant accounts, which shows that they can adapt to regulations and have high customer satisfaction.
4. Do You Have Fraud Prevention Tools?
Fraud affects hard-to-place businesses more frequently than regular businesses, and that’s something the specialty merchant account provider should be acutely aware of. They’ll have fraud prevention tools in place that help to minimize the risk, including real-time alerts that notify you when there are suspicious transactions.
5. How does the Approval Process Work, And How Long does It Take?
Opening a high-risk merchant account takes longer than opening a regular account, but the exact duration can vary. The best providers do their in-house underwriting, which can seriously speed up the approval process. You should find that the documentation submission process is straightforward and that they can offer realistic guidelines on how long the approval process should take. At their best, high-risk merchant providers can have your account opened and in operation in a matter of days.
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