Most businesses that cater to customers across the globe tend to operate online and usually rely on electronic transactions. However, these businesses generally have a complex model and have more tendency to face chargebacks and false transactions. To keep things running fluidly, these merchants have to take the help of a high-risk payment processor.
If you want to hire a reliable high-risk payment processor for your company, you should keep some things in mind to avoid legal issues. This article will discuss what a high-risk payment processor is and what factors you should consider before engaging a payment processor for your business.
High-Risk Payment Processor: What is it?
The high-risk payment processor or High-risk merchant accounts is a specialized payment processing unit established for "high-risk" merchants. These payment processing units can either be located domestically or at overseas locations. They accept all kinds of electronic payments from global customers.
A high-risk payment processor is intended for both national and international businesses considered high risk by banks. These businesses usually operate online and are more vulnerable to chargebacks, fraudulent transactions, and bad credit scores.
A High-risk payment processor has provisions to deal with such liabilities in return for a fee. They help these merchants oversee their transactions and permit them to accept a wide range of electronic payment modes in different currencies. For instance, Shark Processing specializes in offshore merchant accounts.
Who Needs a High-risk Payment Processor?
High-risk payment processors are usually hired by corporates and businesses that;
- Administer the business internationally,
- Run primarily on electronic transactions,
- Have multiple offices in foreign countries,
- Trade with high-risk merchandise like pharmaceuticals, nutraceuticals, tobacco, skincare products, tobacco, etc. International travel agencies are also deemed as high-risk. E-commerce companies are also categorized as high-risk merchants.
What Should You Consider Before Choosing a High-risk Payment Processor?
Choosing a reliable and efficient payment processor for your business can be pretty challenging. You would have to consider several factors to ensure the payment processor you hire would keep both your business and revenue protected. Here are a few things you should remember while looking for a payment processor for your business.
- Currency Support
International businesses which cater to a worldwide customer base usually have different currencies streaming into their merchant accounts. To make your business thrive, you need your payment processor to accept all kinds of currencies from across the globe and allow the currencies to be converted into the currency you want.
- Flexibility & Customization
Managing the revenues generated by a business is not an easy task. Every business needs customized solutions for its finances to let it run efficiently and smoothly. Before you hire a payment processor for your company, make sure you can negotiate rates and conditions for your business with the processor so that you get what's best for your company.
- Advanced Security
When you run a high-risk company, your money needs more protection than usual. Before finalizing a payment processor for your business, check whether they provide multi-layered security measures and other anti-fraud tools to prevent hackers and fraudsters from hacking into your account.
Transparency is essential to understand the credibility of a payment processor. Make sure the processor you choose discloses all the needed information regarding its policy and regulations upfront. Ask the processor to set up a session with you to discuss all the financial policies. This will allow you to ensure the authenticity of the processor.
- Customer Assistance
Most businesses that choose to work with a high-risk payment processor operate online from a different overseas location. They need a trustworthy processor that will help them with all the issues that might come up while handling the customer transactions and their revenue. Before hiring a processor, make sure they offer 24/7 customer assistance.
How to Find the Ideal High-risk Payment Processor?
High-risk merchants often have to deal with various legal gray areas regarding their transactions and finances, which can be pretty challenging. A good high-risk payment processor oversees these issues and facilitates secured and seamless transactions. Here are some tips which can help you pick the best high-risk payment processor for your business;
1. Do a Thorough Research:
The most vital thing to do before choosing a payment processor is to research the industry. Find a payment provider who has experience working with other high-risk merchants, especially those in the same industry as yours. Review the testimonials of previous customers to have an idea about their quality and performance. Go for the one that has an excellent track record to its name.
2. Inspect the Services Provided:
Before choosing a payment processor for your business, make sure they offer the services catering to all your needs. Compare the services offered by other processors so that you choose the best without having to compromise on anything. Some of the most vital services you should look for are credit card acceptance, net banking, and mobile payment solutions, and integrated payment gateway.
3. Review the Contracts and Policies
Before you choose a service provider, it is essential to know what you are getting yourself into. Often merchant payment processors require their customers to sign up for a long-term contract. Sometimes an auto-renewal clause is also included to lock the merchants for a continued relationship with the service provider.
If you feel the demographics of your business will change in the future and you are not comfortable closing a long-term contract, make sure to check their regulations and disclaimers regarding their contracts and policies so that you don't get caught by surprise.
4. Check the Credibility and Efficiency of the Services Provided
Most service providers working with high-risk businesses offer a multitude of services to attract merchants. So, before you pick a payment processor, make sure they provide what they claim in their brochure. If there is any discrepancy in the information provided, refrain from hiring that payment processor.
Also, check the fee they are asking in return for their services and whether it is feasible. Check whether the service provider offers 24/7 customer support, troubleshooting and account maintenance support, and other relevant services. Select the processor who can assure you top-quality services.
The Bottom Line
This article must have helped you gain more information regarding what a high-risk payment processor is and why you need one. Keeping a vigilant eye will help you avoid potential risks and enable your business to thrive worldwide.