Tuesday, November 2nd, 2021
With the rise of global online shopping, businesses in high-risk industries have a lot to think about. To help their companies grow locally and internationally, merchants must partner with reputable payment partners.
Discover 5 high-risk payment processing practices to avoid costly chargebacks and fines from your bank or payment gateway.
1. Check for flexibility
A flexible payment processor gives you the support you need to prosper locally and abroad. In essence, they allow you to take all sorts of payments, including credit cards, and process them through any bank.
2. Consider offshore convenience
Global tax laws are more forgiving than local ones –so if possible, go for an offshore merchant account. These account types will favor you because tax laws for international businesses are more lenient to encourage overseas investments. You can use this knowledge to position your high-risk account for international trade.
That way, you’ll easily get approved to sell high-risk commodities and services abroad without any problems.
An offshore merchant account also offers the following pros:
- Collect payments in multiple currencies.
- Enjoy more secure payments
- Take payment in the customers’ local currency
Lastly, you sell goods worldwide without problems and expand your market.
3. Balance payments across your merchant accounts
Work with a payment processor who prioritizes load balancing. This approach offers multiple advantages to your business and followers by spreading payments across your merchant accounts.
Balancing transactions in this manner ensures business continues even when one of your merchant accounts suffers problems. It also offers an extra layer of security while reducing chargeback levels.
4. Prioritize Payment safety
When handling payments, you must protect your money as well as confidential client data. It’s important to scrutinize those initiating your transactions before committing to a deal. Inquire about their security protocol to see if it matches current standards.
A secure system should allow you to verify customer information and region. It also tracks customer habits and flags suspicious transactions.
5. Don’t sideline local payment partners
Businesses using offshore merchant accounts should link their accounts to a domestic processor.
Partnering with domestic payment processors allows shoppers to pay through means other than credit cards. It also localizes prices simplifying the buying process for customers.
While a payment processing company is a must for any business, it’s important to ensure you are working with the right one. By taking these best practices into consideration, you can be sure your eCommerce business will reap the benefits of accepting online payments and avoid costly mistakes by using an unqualified service provider.