Every business needs a payment processor for debit and credit. It’s just a part of doing business in the modern world. If you run a very small business then you can probably get away with just using a service like Paypal for this kind of thing at first, but as you upgrade your company, you’re going to wind up needing a payment processor that can work in higher volume or can aid you in your niche.
Of course, you might not find out until you reach that point that you don’t just need any payment processor, but one that specializes in high-risk merchants. A merchant can be categorized as high-risk depending on a number of factors. If the evidence suggests that you’re going to be at a higher risk business than the next business over, then you are classified as a high-risk merchant, and you’re going to be better off looking for a processor that specializes in that, because a standard processor either won’t cover you, or will, but only while charging you considerably more than any other business they work with.
Not to mention Maverick BankCard will help consult you with merchant processing as they take a vested interested in your business.
The more common way to be classified as a high-risk merchant is to be doing business in a high-risk industry. These industries include cigarettes, firearms, alcohol, airlines, even eBooks, adult entertainment and vape shops. What makes an industry high-risk also comes down to other factors as well.
It’s not uncommon for someone spending money at an adult entertainment store to be embarrassed by the purchase later and deny the charge just because they don’t want to admit to making the purchase. In the case of firearms, these are industries where certain customers are dealing with regulations and laws that they themselves might not be very familiar with. Some of these businesses also have certain political complications or a social stigma attached that can affect businesses that sell these products and services.
High-Risk Merchant Solutions: What You Can Do
Although there are some generally universal rules, every payment processor will have its own guidelines for determining whether or not you are a high-risk merchant. Some merchants are definitely high risk no matter who you ask, and others aren’t, and there’s a middle ground where you might be considered a high-risk merchant by one processor but not another. So if you’re somewhere around that middle ground, then you might want to reach out to Maverick BankCard and learn more information.
How Do I Select A Payment Processor?
A problem we see with a lot of payment processors is that they really don’t care about small businesses. If you run a major chain, if you’re turning over tens of millions of dollars a year, then yes, you can expect every processor to roll out the red carpet. If you’re a small company making a few thousand dollars a month, if you run a single location and you have your good weeks and bad weeks, some of these services are barely going to give you the time of day. Some payment processors are more than happy to rest on their laurels with one or two major accounts.
Maverick BankCard may be a little more eager to treat all their customers as important.
So first off you need to consider what your niche is in this area. Maybe you’re a high risk merchant, but that doesn’t mean that you should settle on the first processor willing to return your calls. Within the high risk niche, there are other niches, and each of those niches have niches, as well. Some payment processors may be willing to cover, say, a “vape shop,” but they might wish they didn’t have to, and they might not be eager to treat you as well as they do other companies they work with.
It’s not just industries, of course, it’s also income level. If you run a small business, then you want to look for a payment processor that tends to get positive feedback from other small businesses. If you run a larger business, look for payment processors who specialize in your economic range.
Protect Your Business With These Tips
Ultimately you’re looking for a partner. Some of these companies want you to think they’re doing you a favor. They’re not. It’s a mutually beneficial arrangement. If someone wants you to think they’re doing you a favor, it’s only so you won’t know you’re getting ripped off.
To clarify: Yes there are processors who specialize in high risk merchants, but there are degrees of high risk. Some merchants are high risk because of their industry, others simply have very poor business practices, and others just need to make a few corrections. You might be high risk by default because of your industry but you can still have more options for payment processors by bringing your risk down to some degree.
Here are some ways you can do that:
- Reduce & Dispute every chargeback. You probably won’t get many chargebacks overturned, but by disputing them you have at least a precedent wherein you have not assumed fault.
- Make your refund policy & cancellation easy and simple and obvious. If you think that you’re going to prevent people from wanting their money back by making it really hard for them to get their money back, you’re not. They’re going to get their money back one way or another. If you hide the refund request button on some hidden page of your website, if you make your customers jump through hoops or you don’t offer refunds at all, they’re just gonna go over your head and have their bank or credit card company file a chargeback. And the bank is probably not going to take your side.
- Reconsider what you’re selling. Some items might just be more trouble than they’re worth. Not every convenience store needs to sell liquor if the profit you’re making on those items is less than the extra cost you’re paying for payment processing. If high risk items make up only a small fraction of your sales, then it might be best to cut them out entirely.
This can help you to have a wider range of processors to choose from, and when you work with a processor that specializes in high risk merchants, you may be able to get a better deal if you’re less high risk than another business. Many processors in the high risk niche will work to offer a deal that correlates to how much risk they’re taking on rather than just handing everyone the same boilerplate offering.
Choose A Partner For Merchant Processing
The first step is to simply talk to the processor. Either through email or on the phone. Get a feel for them. Sometimes it comes down to gut instinct.
Do they seem to have your best interests in mind?
Maverick BankCard does...