What High-Risk Businesses Do When Applying For Payment Processing


    These days, eCommerce businesses are gaining immense traction from consumers as most people make a majority of their purchases online. From groceries to clothes and other services, consumers are relying on eCommerce businesses for everything. That being said, the most common way for them to pay for these services is through their credit card. And in this case, businesses can no longer afford to not accept credit card payments from consumers.

    What You Should Do When You’re Categorized as High-Risk

    This has made it all the more important for businesses to choose a credit card payment provider like Pay.cc. However, this leads to another issue: being categorized as high-risk. If you’re a high-risk business, then it’s quite likely that some credit card payment processors will outright reject your application. Meanwhile, some providers may give you guidelines to reduce that risk and take certain measures as well.

    Have Steady Cash Levels In Your Account

    As a high-risk merchant, you can increase your likelihood of securing a reliable igaming payments processing service provider. You can take certain steps to make a favourable impression, such as:

    One of the first things you can do is to keep a consistent cash level in your merchant account. Usually, credit card payment processing companies want to see that your bank account has a healthy cash level. It shows that you’re financially stable and alleviates their perception of you as a high-risk business.

    Make An Effort To Reduce Chargeback Ratio

    Your chargeback ratio is what determines whether or not you’ll be categorized as a high-risk business. Therefore, you can prove that you’re not by trying to reduce the number of chargebacks you face. Of course, nothing can stop you when a customer wants a refund, but you take certain measures. A common reason for refunds among eCommerce customers is when the product they receive is vastly different from the description on the website.

    As a business owner, you should do your best to ensure that the product received by the customer is what they expected. If your business faces a large number of chargebacks because of slow delivery times, then try shifting to another logistics company to reduce the risk of chargebacks.

    Be Honest About Your Business

    Make sure to disclose all the necessary information about your business by providing the service provider with relevant documents and materials. Otherwise, it can be detrimental to the business and affect your business’s credibility.

    Compared to low-risk businesses, credit card payment processing services may ask you for detailed information about how you operate. They will also ask for extensive information regarding your finances. So, be completely transparent.

    Have Documents Ready

    When applying for credit card payment processing services, it’s important that you have relevant documents read. It includes six months of bank statements, as well as the last few years’ tax returns. Of course, these are just the basics. Every payment processor, such as Pay.cc, has their own requirements, so ask them first.

    Follow Guidelines By Your Payment Processor

    When you approach a credit card payment processing company as a high-risk business, keep in mind that they also have a specific appetite for risk. Therefore, there’s only so much risk they’ll be willing to take. Therefore, keep an open mind and be flexible when discussing what you can do to reduce your risk level. Most importantly, follow their recommendations if they give you any.

    How High-Risk Merchants Can Find Payment Processors

    If you’re running a high-risk business, it’s likely that you won’t find any standard pricing information on a public platform, such as the payment processor’s website. Instead, it’s possible that you’ll need to arrange private meetings or consultations with the company’s representatives to put your case forward.

    You can start by listing down some potential high-risk payment processing services, such as Pay.cc, that are likely to serve your business. After you’ve listed some of the best options available, compare what each one can provide you with. Get some clarification on certain aspects. For instance:

    • How long has this payment processing company served businesses in your industry?
    • How much time do they need to deposit payments into your merchant account?
    • Do they have a cash reserve requirement, such as a capped, rolling, or upfront reserve?
    • Do they require you to pay an early termination fee in the event that you switch to another processing service later on?
    • Will they provide any equipment?
    • Do they offer any customer support?

    Overall, it’s clear that some businesses carry a higher risk than others. But there’s no specific definition as to what counts as high-risk since that varies from one provider to the next. And even if you sign up with a provider thanks to their easy entry point, there’s a risk that you’ll be cut off.