Finding a High Risk Merchant Account Provider for Your Business
A merchant account is a type of bank account that allows businesses to accept and process credit card and debit card payments. high risk merchant account is a merchant account that has been labeled as such by a bank or credit card processor due to the increased likelihood of chargebacks or fraud.
There are a number of reasons why a business may be labeled as high risk, including being in an industry with a high rate of chargebacks, processing a large volume of transactions, or having a history of chargebacks or fraud. While being labeled as high risk may seem like a negative, there are actually several benefits to utilizing a high risk merchant account.
Increased Customer Satisfaction
When customers know that they can pay for your product or service with their preferred method of payment, they are more likely to do business with you. In fact, studies show that offering multiple payment options can increase sales by up to 30%.
Furthermore, customers are more likely to trust businesses that offer multiple payment methods and have been verified by a third-party processor. Utilizing a high risk merchant account gives your customers the peace of mind knowing that their transactions are secure and that you are a legitimate business.
Avoid Fraud and Chargebacks
Another benefit of utilizing a high risk merchant account is that it can help you avoid fraud and chargebacks. When you process payments through a high risk merchant account, the transactions are run through advanced fraud prevention measures that help to identify and avoid fraudulent activity. In addition, should a chargeback occur, you will have access to dispute resolution services through your processor.
Improved Cash Flow
In addition to increased customer satisfaction and fraud prevention, utilizing a high risk merchant account can also improve your cash flow. When you process payments through a regular merchant account, the funds from those payments can be held for up to 180 days before they are deposited into your account. However, when you utilize a high risk merchant account, the funds from transactions are typically deposited into your account within 2-3 days. This gives you access to the funds you need to keep your business running smoothly without having to wait weeks or months for the money to hit your bank account.
If you own or operate a business that has been labeled as high risk, utilizing a high risk merchant account can provide you with numerous benefits, including increased customer satisfaction, improved cash flow, and fraud prevention. When shopping for a processor, be sure to compare fees and reviews so that you can find the best fit for your business.