What a few merchants may not know is that there are specific high-risk payment processors accessible to assist merchants with getting a High Risk Merchant Account - and manage them - so the business has an opportunity to flourish.
In obtaining a High Risk Merchant Account, merchants are not necessarily beholden to the limiting "rules" of traditional merchant accounts. Some of these high-risk merchant benefits include:
1. The Ability to expand globally
Traditional merchant accounts are many times limiting in that they restrict a merchant from carrying on with work beyond its country of origin. The way this happens can be indirect. For instance, low-risk processors may not allow merchants to conduct card-not-present (CNP) transactions. They may likewise limit the types of payment techniques, including international currencies, or restrict international payments altogether.
High Risk Merchant Account benefits include the ability to transact freely, regardless of currency, payment method, or location of the transaction. This is fundamental for online merchants looking to develop their customer base to global proportions. It's additionally basic to any e-commerce merchant, as purchases may originate from any region of the world.
2. No Volume Caps
Volume caps are common in low-risk merchant accounts. It returns to the predictability factor that many banks equate with financial stability. Tragically, certain business models (think MLM or direct response) are essentially not built to have similar volume months after month.
One of the greatest High Risk Merchant Account benefits is the ability to transact freely, without worrying whether you will surpass the expected volume for the month. It affords merchants unlimited earning potential. Merchants that advantage from this might include any that:
- Have a recurring billing model
- Offer high ticket things ($500+ per thing)
- Process over $20,000 in transactions every month
Recurring and subscription merchants specifically have a ton to gain with a High Risk Merchant Account. They are not limited or forced to restrict transactions and can enjoy recurring revenue with the potential to grow.
3. Limited Chargeback Issues
Chargebacks are a tangled mess for most merchants, however, particularly for high-risk merchants. Merchants with a low-risk merchant account frequently have questionable associations with their acquiring bank, particularly if they get close to breaking the 1% chargeback ratio. A low-risk merchant account is at risk of being terminated without warning.
One of the greatest High Risk Merchant Account benefits is that there is increased flexibility about chargebacks. The merchant might be dependent upon higher expenses due to chargebacks, yet their business isn't ceaselessly in danger because of them. A high-Risk Merchant Account is rarely terminated because of high chargebacks.
Conclusion
All things considered, merchants ought to consider the High-Risk Merchant Account benefits before choosing to tap out. Working with a particular high-risk payment processor can assist with smoothing out the payments flow and position your business for long-term achievement.