Learn more about what a high risk account is, and what that means for your business.
If you’re a merchant in entertainment, or someone who sells intangible goods, then you might be viewed as a high risk. There are other factors, such as the history of your business and the volume of goods you sell, but being high risk isn’t the end of the world. High risk merchant accounts are just a part of the business, and this guide will help you learn how you can reduce the fees you pay if you fall into this category.
Institute a return policy, and make sure you’re going above and beyond to solve customer issues. If they do a chargeback with your business, it can really hurt your risk rating. If you cut your volume of chargebacks by 20% for the year, you’ve already substantially reduce the fees you’ll pay for high risk credit card processing.
Avoid Pre-Set Limits
This is a common trap that many new businesses fall into. Pre-set limits look great when you’re processing a low volume of transactions. The fees are reduced, in relation to your risk, but you’re not seeing the bigger picture. Once you process more transactions than your limit, you’ll make up for those low fees in transaction fees, and those will kill your profit margins very quickly.
You’re high risk, so you shouldn’t move on the first offer that’s made to you. That sounds counter intuitive, but it’s actually a good idea to shop around a bit for a payment gateway that will work for you. Don’t settle for less, especially just because the fee structure is nice.