Wednesday, February 19th, 2020
What is a high-risk merchant account? And why do many businesses choose to use one? A merchant account allows a business to accept and process debit and credit card transactions. Consumers seem to prefer cash and check less and less and are using credit and debit cards more.
Thanks to new technologies and mobile devices, consumers demand convenience and speed more than ever before. To keep up with these preferences, merchants have to make sure they have the payment processing services they need to create a seamless process consumers appreciate and expect. For many merchants, this is easier said than done.
Certain business types and industries are considered high risk. Traditional providers see them as simply too risky to work with and will not provide a merchant account. Other business can secure an account but have their account terminated later for obstacles they run into, like excessive chargebacks. This is where a high-risk merchant account comes in.
Benefits of a High-Risk Merchant Account
If your business is a highly regulated industry (e.g. CBD sales, firearms, nutraceuticals, etc.), experiences excessive chargebacks or has a reputational risk (e.g. adult, dating websites, vape shops, debt collectors, etc.), it will likely be categorized as high risk. A high-risk merchant account offers many benefits. Here are a few of the top ways a high-risk merchant account can help you:
- Get access fast
When you partner with a high-risk provider, you can have access to an account in as little as 24 hours. A traditional provider, on the other hand, could leave you waiting weeks or even months before letting you know if you’ve been approved or not.
- Easily accept credit cards
One of the most important benefits of a merchant account is the ability to securely accept credit and debit cards. As this payment method continues to grow in preference among customers, it is more and more important for businesses to prioritize them by eliminating any friction in the payment acceptance process.
- Increase sales
Various studies over the years have come to the same conclusion: customers spend more when given the option to use credit cards over cash. In fact, businesses that accepted credit cards experienced an increase in sales and overall growth of their business.
- Improve money management
A high-risk merchant account can transform the way your business handles transactions. When your business is able to accept credit cards and move to online payments, it will streamline transactions and help you stay organized. You will be able to not only improve cash flow management but also forecasting.
- Avoid bad checks
Using high-risk merchant account services and accepting electronic payments will help your business avoid the hassle and costs associated with bounced checks. Depending on the high-risk provider you choose, you might also be able to accept recurring payments for repeat services.
- Greater customer convenience
Most importantly, a high-risk merchant account ensures your customers are happy (and loyal). A merchant account gives them the flexibility to make purchases in different ways. They will appreciate the ability to pay how they prefer and to shop how and when they want.
If you would like to learn more about how a high-risk merchant account works and how to get started, contact the team at Best Payment Providers. Our experts would be happy to help you secure the services you need to grow your business.