Digital downloads have become a new way for individuals to become entrepreneurs. With the right offering and a little bit of business sense, you can become a billionaire. App developers and programmers can reach millions of people across the world and sell their downloadable digital content – all with just a tap of a smartphone or tablet.
Most apps can be downloaded for free because developers make money in other ways including promotions, sponsorships, advertisements, paid upgrades, paid subscriptions and in-app transactions. However, there is much more money to be made when consumers are willing to pay for upgrades and subscriptions or when they are willing to make in-app transactions for a service.
As devices like connected cars, gaming consoles and virtual reality machines continue to evolve, the digital download industry is also likely to keep growing and booming.
Although there is lots of money to be made in the digital downloadable content industry, most companies in this sector usually fail. This is because they are either unable to get a merchant account or end up working with a merchant service provider who is not right for their business. Also, traditional banks are unwilling to grant these businesses a merchant account because they consider them high risk.
What are the most common issues with Software Downloads High Risk Merchant Accounts?
Let’s discuss the problems these businesses face in detail.
The 101 on the common problems of this industry:
- The chargebacks are quite common
- There is friendly fraud
- Disputes can happen often
Digital downloads businesses have the potential to earn a huge profit. This automatically makes it a high-risk industry for traditional banks. Large sales volume is associated with high-risk. When sales figures are big, the chargebacks also tend to be higher.
Disputes are also common with software because people will purchase the product and easily claim it was not what they expected. This phenomenon is known as friendly fraud. However, sometimes these complaints may be genuine since the business may not render a service up to the customer’s expectations. The digital content industry is also prone to attacks by cybercriminals due to anonymity of the internet. Since the number of daily sales are high, it might take some time before the merchant or customer becomes aware of the fraud.
Whatever the reason may be for the chargeback, such disputes can be very draining to a business and the bank involved and they end up refunding the customers for no fault of their own.
Finding a proper high risk merchant account for your software downloads business is important. This will help you lower the incidence of these problems as much as possible.
Why are Software Downloads High Risk Merchant Accounts important to have?
The biggest advantage right away is that it allows you to have faster means of payment. It also makes the management of your account completely seamless and easy, especially when you are trying to handle big numbers in terms of transactions.
There is also better fraud protection with a reliable software downloads high risk merchant account service provider. Security measures and fraud detection checks ensure that a wireless transaction is processed without compromising the customer’s information. Measures like PCI Compliance, Data Encryption, payment tokenization, 3D Secure Implementation, Card Verification Value (CVV) and Strong Customer Authentication (SCA) make online transactions completely secure and safeguarded from fraud or other security threats.
A good software downloads merchant account also offers an effective chargeback prevention system for high risk businesses. Such a system should be able to reduce a merchant’s chargebacks by 25%
A good merchant account for software downloads also offers a robust online support. It also comes with other essential ecommerce features like a secure payment gateway and a virtual shopping cart where the customer can see the details of each order and the associated price.
You will also find that having such a merchant account for your software download business is going to give it more credibility. The software downloads business is indeed lucrative, but also very competitive. Being able to stay ahead of your competitors with optimal services is crucial.
A good high risk merchant account is not just useful but truly essential, especially if you want to run a great software downloads business.
How CutPay Can Help Your Software Downloads Business
The process of obtaining this type of account is not complicated, but it can be difficult to manage it seamlessly. CutPay is going to make this process much easier by providing all the necessary management strategies. This will ensure that you are able to handle the difficult aspects of this process.
We at CutPay understand the needs and requirements of software downloads businesses. We hope these tips from us help you in running your business.
If you want to apply for a merchant account for an online content downloads business, you have come to the right place.
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!