Choosing a suitable high-risk card payment processor might be difficult, but you’ll be amazed how much easier your company operations will become once you have one. Working with a payment processor who understands the high-risk credit card processingwill help you build your reputation while also keeping your funds safe. Here’s everything you need to know about processing high-risk payments.
The danger of fraud increases as your sales increase. This is why you should make sure your payment processing system is protected by advanced security solutions that keep hackers at bay.
What Is a High-Risk Merchant?
Some internet business methods and industries are classified as hazardous by payment processing card organizations. Several criteria might put your company in a high-risk credit card process, but the most common ones include chargebacks, refunds, and payment processing history.
§ Some examples of high-risk industries or business models are Travel, adult entertainment, advanced reservations, forex, telemarketing, pharmacy, betting, and gambling, to mention a few, are among them.
§ Companies classified as high-risk operate operations that are more prone to chargebacks than ordinary merchants, necessitating in-depth investigations of their activity and transaction patterns. Before deciding whether or not to engage with a firm, a payment platform calculates the likelihood of chargebacks and the source of those chargebacks.
§ Payment processors frequently impose a rolling reserve on merchant accounts. The acquiring bank may be able to use the rolling reserve to offset chargebacks. Reserve is an extra layer of security for the bank against unanticipated merchant activity.
This is why working with a high-risk payment processor with expertise and experience in this niche industry, as well as top security, is critical.
What Distinguishes a High-Risk Payment Processor from Others?
A high-risk credit card processing takes on more risk in exchange for a higher fee. Because the risk is evaluated differently than it is for normal merchants, it necessitates the use of sophisticated methods. Of course, this will necessitate a greater level of participation in fraud management.
Ø It is important to choose an intermediary who has an AI-based detection system for high-risk transactions, as well as a team of experts who examine every transaction.
Ø For example, SecurionPay’s technology allows you to configure your filters both automatically and manually, giving you complete control over your purchases at any time of day, week, or month. You have a collection of tools that can be tailored to fit your specific company requirements.
Ø The goal is to assist merchants in diversifying risk and reducing the number of fraudulent transactions to maintain the account healthy and functioning over time. It’s critical to constantly err on the side of caution and remain below the card schemes’ established limits.
Ø However, the payment processing technologies they utilize have a big impact. As a result, payment providers should concentrate on solutions that reduce fraud risk and prevent high-risk merchants from closing their accounts due to a high number of chargebacks.
Fraud-proof solutions with machine learning-based procedures and filters that react to unique business models and traffic origins are required for high-risk credit card processing. This is a lot better than using static filters. The security settings in SecurionPay reduce the number of false declines, which can be more costly than fraud.
What About the High-Risk Merchant Fees?
High costs for high-risk enterprises became the norm many years ago when the organizations that now provide the same fees were just getting established. However, technology has advanced significantly over the last decade, and we now offer cost-effective solutions for high-risk merchants.
It may come as a surprise that a 15% commission rate or even higher costs maintain the outdated strategy, which includes redirections and pooled accounts that reduce conversion rates.
Direct high-risk merchant accounts, on the other hand, provide businesses with more freedom and control over their transactions. It is three times less expensive than systems that reroute users to external payment pages, and it includes specialized in-house support as well as extremely effective security measures.
What Should You Look for In a High-Risk Payment Processor?
There are a lot of high-risk credit card processors out there, so picking one that will fulfill all of your demands isn’t easy. Business plan. Make sure the payment processor you use is compatible with the business models you use.
1. Security
You need a dependable chargeback prevention solution and a tiered approach to security as high-risk businesses create more chargebacks or fraud attempts. Anti Fraud tools, AI-based fraud checks, real-time warnings, and other services are available upon request.
2. Expertise
When it comes to high-risk merchant accounts, the length of time the firm has been in business and the experience of its management is critical. Their understanding of the ins and outs of specific sectors also helps.
3. Flexibility:
Find a high-risk processor that allows you to use a variety of payment situations to meet all of your firm’s demands, even if your business is complicated. Make sure you can talk about the pricing, terms, and services that are exclusive to your company.
4. Clear pricing:
On a payment processor’s website, look for the price structure. Make sure you understand how much it will cost and that there are no hidden or additional costs. When you can’t acquire accurate information from a possible high-risk processing partner, it’s time to be concerned. Also, bear in mind that as your income grows, your rates may decrease.
5. Supportive response:
Check to see whether there is someone on the other end of the line. Consider what may happen if you have payment difficulties on your website and your payment provider is unable to assist you. You must have the impression that you are being looked after.
Avoid costly contracts with out-of-date payment processors who lack expertise and cutting-edge technologies. Your objective should be to reduce friction in your high-risk business, so do your homework before deciding on which excessive credit card processor to choose.
It’s always a good idea to do a little research before signing anything. Intended advantages surpass any expenses incurred by accepting credit card payments.