When you create the payment gateway or want to receive payments online, you may need to start a merchant account. This account is optional, and it depends on your personal preferences and type of business. While more and more businesses that trade online sign up for the high-risk merchant accounts, you can’t forget about the extra safety.
Why Do You Need It?
Nowadays, businesses attract clients by offering not only unique products of high quality but also a quick and secure method of payments. The system is widely used by both online and brick-and-mortar stores. Cash is replaced by the payments you provide online. Yet, once you are claimed to be a high-risk account for the merchant service, your business may suffer significant losses.
Factors that Put You in High-Risk Section
If you want to stay out of the high-risk group, you have to pay attention to the following factors. They are all important when it comes to payment processors. Check them out:
- Industry specifics. Some industries usually have greater risks than others. Among them are businesses related to finances and those whose reputation is crucial for success on the market. Businesses that contact clients constantly like telemarketers, online auctions, bail bonds companies, and even dating websites have to provide a high level of protection for their clients;
- Location is equally important for business. If your company is not situated in the US, and you have to contact American clients, you will have to struggle to gain their trust;
- Businesses without cards. If your business uses transactions without cards, you belong to the high-risk group that deals with chargebacks and frauds. Such systems are popular among dating websites, home-based businesses, online businesses, and auctions that are set online. If your business offers any type of product, you still have to make sure you offer card payment options;
- Chargebacks in a huge amount can destroy business in no time. Even if they rarely appear, they still may do lots of damage to your reputation. The problem does not have to be with your product. Frauds often use a chargeback system to keep both the product and money. To avoid it, make sure your payment system works flawlessly;
- Lack of personal credit. The personal credit you have may affect your business as well. You have to work hard to provide a positive credit score that improves your reputation on the market. Sometimes you will need to reduce the credit ratio, pay the debts you have, and gain banks’ trust.
Building a Solid Reputation
No matter which kind of business you have, you need to make sure that your clients feel secure. To do this, you need to provide specific conditions for them, including the diversity of the payment options they can use. If you want to improve your business, pay attention to the crucial factors that put you at high risk. Only after you remove all the problems, one by one, will you be able to attract the audience to the services you provide.