If you’re a high-risk merchant, getting a high-risk merchant account can sometimes be a complex process. It’s helpful to know what you should expect to make the process go smoothly. You should also be aware of other things related to high-risk merchant accounts such as chargebacks. In addition, it’s helpful to know the benefits you’ll receive with a high merchant account as well. The more knowledge you have on this subject, the easier navigating the world of being a high-risk merchant will be. Here are some basics to know about high-risk merchant accounts.
Extensive approval process
While you may hear services offer the promise of instant approval for getting a high-risk merchant account, that’s generally not the case. Though you may not be able to make the process go quickly, you can do things to improve your chances of getting approved. You should always be sure to showcase the top features of your company. In your cover letter, share anything you can think of that makes your business distinct from the others. Promote any advantages you may have in your business, such as the people you may have that possess quality industry insight.
Faster merchant account approval
As mentioned earlier, instant approval is unlikely when it comes to getting a high-risk merchant account. Nonetheless, there are ways to potentially make the process go faster. One way you can do this is by discussing your high trade volumes in the cover letter. The chances of approval will increase if you can show your business has a strong processing history with money moving through the business. Another thing that’s important to address in the cover letter is long fulfillment duration. This is referring to the time that’s taken between when a payment is processed and when the product or service has been delivered. It’s important to explain your plan for fulfillment duration. If it takes longer for a product or service to be fulfilled, this increases the risk of a chargeback. The reason it matters is that chargebacks make your business look riskier. A short fulfillment duration makes your business appear less risky
High-risk merchant account benefits
Many benefits can come with having a high-risk merchant account. One benefit is that it allows you to accept a variety of payment methods. The more payment options you have for customers to use, the more potential for sales you have. In addition to multiple payment methods, high-risk merchant accounts provide you protection from getting defrauded. This includes protection against customers using credit cards that aren’t valid or writing bad checks. Lastly, high-risk merchant accounts can protect you against chargebacks. Most providers will have you set up a reserve fund to use in the cases of chargebacks.
These are some of the basics you should be aware of with high-risk merchant accounts. All of this information will help you be prepared for operating your business as a high-risk merchant. Payment Cloud can provide you with more helpful information on the topic of a high risk merchant account.