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As a merchant, there are numerous things to check off on your to-do list before starting to run an online business. However, arranging a way for your customers to checkout and pay is not as simple as saying it. Even, selecting a payment processor to process online transactions takes time and research.

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Published by highriskgateways0, 2022-03-16 08:13:04

High-Risk Payment Processors | Everything You Need To Know

As a merchant, there are numerous things to check off on your to-do list before starting to run an online business. However, arranging a way for your customers to checkout and pay is not as simple as saying it. Even, selecting a payment processor to process online transactions takes time and research.

Keywords: High-Risk Payment Processors,high risk payment gaeway,high risk merchant account,credit card processing,offshore payment gateway

As a merchant, there are numerous things to check
off on your to-do list before starting to run an
online business. However, arranging a way for
your customers to checkout and pay is not as
simple as saying it. Even, selecting a payment
processor to process online transactions takes time
and research.

Here is a handy guide on high-risk payment
processors and acceptable payment methods.
All the High-Risk payment processors are not
the same, but they have their areas of
specialization where they can meet the

requirements of particular businesses.

Define High-risk Payment Processors

A payment processor categorizes a merchant account high-risk if they
have found your business at higher risk of chargebacks, frauds, or a
high rate of returns. There are various reasons and this could be the
scene – that you are a new merchant who has not processed payment
before or because your business type is considered high-risk and has a
nature of fraud. High-risk merchant accounts have to pay higher
processing fees for this risk. Generally, if an online business
accepts credit cards, it requires a high-risk payment processor.

High-Risk Payment Processors Means Higher Fees

Every credit card processing platform is different in many ways.
But high-risk merchant accounts will tend to pay higher fees
around the board. Usually, processing fees for all transactions will be
higher, sometimes more than double that of low-risk merchant
accounts. Whereas, low-risk merchants are also paying a chargeback
fee but high-risk merchants have to pay higher chargeback fees.

A high-risk merchant may have to lock into longer contract terms, an
early termination fee, or a monthly or annual charge. High-risk
merchant accounts may also tend to a rolling reserve, where the
payment processor pauses a certain percent of your income until it can
verify your transactions were not fraudulent or at higher risk of
chargeback.

What is a high-risk industry?

High-risk industries have irregular, high-volume sales and a large
number of chargebacks or work in highly restricted industries or the
rules & regulations are not clear at best. It can be caused by poor
credit records, being outside the US, or not meeting particular
standards.

So, here are some examples of high-risk industries.
• Tech Support companies.
• Tobacco sales.
• Offshore businesses.
• Call centers.
• Travel agents.
• Health and supplements.
• Online gaming.
• Debt collection.
• Pharmacies.
• High ticket items.
• Adult entertainment.
• Payday loan companies.

What is the main advantage of high-risk payment
processors?

One of the main benefits of high-risk payment processors is that
it is safer. High-risk payment processors use different kinds of
security measures to assure the safety of the merchant’s data, which
consists of firewalls and SSL. So, high-risk payment
processors also help in fraud prevention, which reduces the high
level of chargebacks when merchants are not at high-risk.

High-risk payment processors also help to process international
payments, making it easier for customers living in different countries
to make purchases with fewer hurdles.
The Importance of high-risk payment processors for E-commerce:
eCommerce businesses are constantly spreading, and the high-risk
payment processor is an essential component for any eCommerce
business. This gateway ensures high-level security for your customers,
also provides the best performance.
High-risk payment processors ensure that your customer data
stays safe when you enjoy fast processing with no delays. However, the
cost of this service may be higher than others, but it’s well worth the
investment. However, it will save your money in lost business
opportunities by preventing transaction errors.

The high-risk payment processors work by dividing your customers
into high and low-risk categories. So you can use a single interface to
make rules and apply them according to high or low-risk transactions.

Moreover, high-risk payment processors work as a bridge between
your website and the payment processor. It can develop reports on
another side to enhance customer service.

How do you select the best high-risk payment
processor?

There are three main factors to consider when selecting the best
high-risk payment processor: Processing Fees, Gateway’s
countries, Mode of payments. Yet, all these factors depend on your
business.

First, you will have to analyze your business for what kind
of payment gateway it requires. So, this consists of looking at how
much money is processed every month. Because as large the company,
as higher the processing fees.

Second, you will have to look at which countries your company
operates in. If you have your targeting customers in more than one
country or selling internationally. Then you will need to ensure that
your payment processor has global coverage. Lastly, if you provide
mobile payment modes such as Apple Pay, ensure that your payment
gateway provider’s services include this.

Moreover, businesses can pay a discount rate when they process over
a certain amount of money in a month. This is a perk for companies to
process more money each month with the same payment processor.
So, if this fee applies to you, ensure that the discount rate is not too

high. You must process enough money monthly to make up for the
discount rate not to pay more than with other payment processors.

Next, you will need to compare the fees of each payment service
provider charge. However, you can do this by looking at how much
they charge per transaction and their monthly fee.
Before choosing your payment processor, one final consideration is
whether they provide mobile payment modes such as Apple Pay or
Google Wallets. If you accept mobile payments, you must ensure that
your payment processor can process them.

So, if your business requires a high-risk payment processor. Contact
HighRisk Gateways.

Services | Payment Gateway

• Customer Vault. Store securely and use tokenized customer details
from prior transactions, essential for businesses with recurring
revenue models.

• Automatic card updater. Handles a complete history of payments
made by customers and offers seamless synchronization with card-
on-file data.

• Electronic Invoicing. Customers can get invoices by making a few
clicks.

• Fraud Prevention. You can get enhanced protection against
fraudulent transactions on some rule-based parameters.

• iProcess mobile payment modes. With mobile apps for Apple and
Android, merchants may accept EMV card payments on mobile
phones.

• Automatic Level III Processing. Level III fees are applied to all
card-not-present transactions for merchants who use the
enhanced data service.

Advanced security features

• Point-to-point encryption. When it comes to payment processing,
point-to-point encryption is the most secure and amazing
encryption technique available, ensuring that customer details are
never exposed during a transaction.

• Remote key injection. It is meant to be an instant and secure
payment terminal key injection at the point of sale with a low cost-
effective alternate.

• Terminal management system. Manage your payment devices
from any location, which includes remote firmware updates
required for security.

Final Views

As we have discussed, there are many reasons why your business can
be considered high risk. But if you get a high-risk merchant
account through a reliable payment service provider, then the
process will be simplified without headaches.

There are businesses with a higher risk of chargebacks. Obviously,
they come with more strict terms and conditions. Moreover, when you
accept payments through reliable high-risk payment
processors that keep security at the priority. You can relax and be
assured that the risk of chargebacks and frauds will be minimized. For
further information on payment processors, you can talk to
the HighRisk Gateways customer support team about what kind of
charges are involved, which countries are supported, and whether they
provide mobile payment modes.

Source: High-Risk Payment Processors | Everything You
Need To Know


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