What setbacks do a business listed as ‘high-risk’ face?
In truth, the downsides of being categorized as a high-risk company are numerous. But it is not always your mistake— the authorities consider these sectors as risky because of the nature of activities or products they handle.
But these merchants, like their low-risk counterparts, are just business owners looking to venture into a niche they find unexploited and make profits out of their efforts.
Among the growing pains of a high-risk entity is payment processing because processors are unwilling to onboard these merchants. Payment processors would rather stay away from these businesses because most of these companies suffer many chargeback cases, lawsuits, duplicate charges, and deceitful transactions.
But that’s not always the end of the road for a risky business because there are still honest and reliable processors who are more than ready to onboard them. Yes, some processors understand that it takes time and effort to start and keep up a good business.
But everything begins with the merchant. You must know the niceties of what makes your business high-risk. Understanding your business’s risks will make it easier to convince a processor to look your way. That way, they will know you’re familiar and ready to deal with the growing pains of your company.
How to Win a Payment Processor for Your High-risk
So what are some of the things to look at before presenting your case to a would-be payment processor?
Be Transparent
Prepare as much info (as possible) about your high-risk business well as a list of payment processors (if any) that have served you. That way, you can build trust and let your potential service providers know the ways to offer better services compared to the previous vendor.
Brand Image is Key
What are you advertising to attract would-be customers? Is everything you say you offer true or just a way to get the attention of a needy shopper? Well, It is of critical importance that a business (particularly high-risk firms) be sincere its offerings when advertising to potential customers.
This will lead to fewer chargebacks, establish trust, and make you reputable both to consumers and payment processors.
Operate by the law
No one wants to work with a high-risk business that doesn’t abide by the regulations, particularly as regards to consumer protection, state codes, refunds, and honest advertising.
Be Crystal Clear
Take time to prepare and provide as much detail to customers about your business policies as regards to matters like refund or cancellation rules. Your would-be payment processor will scrutinize your user agreements to spot misleading or unclear messages and may turn you down for that.
Wrapping Up
Businesses specializing in high-risk goods or services no longer suffer to get a payment processing service that’s willing to onboard them. The problem is in how you present your case. Refer to this guide anytime you need assistance.