If you run a high-risk business, you would know how difficult it can be to find the right merchant service provider for your business. Majority of the leading commercial banks refuse to work with high risk organizations. These traditional financial institutions have a reputation to maintain and they do not want to be associated with controversy or taboo. Hence, they choose not to engage with high risk industries altogether. High risk businesses are also prone to a large number of chargebacks which are usually worth a huge amount of money. Further, failing to meet regulatory or federal requirements could expose high risk businesses to lawsuits, reputational damage, etc.
Against this backdrop, it is imperative that owners choose a merchant service provider that can help high risk businesses remain compliant with respect to merchant services and payments, which should ultimately protect these business from lawsuits, chargebacks, fines and disrepute.
Here are some tips that will help you select the right merchant service provider for your business:
Tip 1: Choose A Merchant Service Provider That Specializes In Your Industry
Before you make any big decision, you should always do your research. This also applies to finding a merchant service organization for a high-risk business.
You should be looking for an organization that is known for providing high risk merchant services. It is even better if they have a good reputation for working with businesses in the same industry as your high-risk business.
The first thing you should do is look at their website. It should a be high-quality working website. A substandard website with missing information might be an indication of low budget or poor management. You should steer clear of such shady organizations online. Many individuals and entities fall prey to scammers and bogus companies who use the anonymity of the internet to trap people and organizations.
Also, please make sure you read the terms and conditions in the application form and ask all important questions. You should also be transparent with the prospective merchant service provider with regard to your expectations, budget and limitations. They will most likely ask for information like financial statements, credit history, etc. Being honest and transparent will also save you from any unwelcome surprises in the future.
Tip 2: Choose A Merchant Service Provider That Offers All Integrations And Services You Require
As a business, you would not only need a high-risk merchant account. You would need other services and integrations that would make payment processing through that merchant account possible. You may also need other payment processing services for example, credit
Card terminals, mobile payment solutions, e-commerce payment gateway, virtual terminal for MOTO transactions, POS systems, etc. Also, some payment gateways offered by merchant service providers can easily integrate with shopping carts. Merchant service providers may offer complementary services like CRM systems, ERP suites, accounting software, Content Management System (CMS) platform, website development and more. Choosing a merchant service providers that offers all services under one roof might save you a lot of time and money. There will also be less hassles related to installations, integrations and updates, making interoperability of systems much easier. However, make sure you do your research and ensure the merchant service provider has a good reputation with respect to these services and the associated price.
Tip 3: Choose Merchant Service Provider That is Known for World Class Service
A good merchant service provider will ensure that they help their customers and solve all their problems. They will not stop caring when you sign the contract. A good merchant service provider will continue to provide support to resolve all your issues: maintenance, 24- support, training, etc. They will give you means to reach out. It can be a helpline number, live chat or email. You can also read online reviews to gauge if customers are happy with after-support provided by a particular merchant service provider.
Now that you know what important things to consider before finalizing a merchant service provider, you should be able to make a well-informed decision that will surely benefit your high-risk business in the long-run.
Let CutPay Help You!
We at CutPay understand the needs and requirements of high-risk businesses. We hope these tips from us help you in running your business. However, if you want to apply for a merchant account for high risk business, you have come to the right place. Whether you’re an adult business, travel organization or any other company categorized as high-risk, we have a solution for you!
Just fill out the form below and give us some details about your business and one of our representatives will reach out to you shortly!
