23 QUESTIONS YOU MUST ASK YOUR HIGH RISK PAYMENT PROCESSOR
You may be visiting this page because you need a High Risk Merchant Account provider. A lot of websites show up on Google when you search for the term “High Risk Merchant Account providers”. You must ask these eleven questions from the provider before signing up.
1. Are There Any Setup Fees?
Most of the high risk merchant account provider ask for a setup fee. Try to find the solution provider which is charging the lowest or offering it at zero setup fees. The Best Payment Gateway solution providers will not ask for a big setup fee.
2. What Is The Mode Of Payment?
All genuine providers will offer Bank transfer. This is a legit way of payment transfer. If the payment mode is different from bank wire transfer then investigate further.
3. What Is The MDR Or TDR (Transaction Rate)?
It may be difficult for you to get a merchant account but once you find one then try to get the best rates. Do price comparison over the Internet for the same solution. The customer has the right to negotiate. You may get lucky if the processor reduces the pricing for you.
4. Are There Any Arrears?
To reduce the level of risk providers put in place a hold on payments. You can read about the hold on the Merchant agreement. Use your negotiation skills and try to convince the provider to reduce the arrears.
5. How Easy Is It To Integrate The Website With The Gateway?
You might be using a platform that is not compatible with the Gateway. It is a good idea to check for compatibility before going ahead with the solution. If you find that your website is compatible with the API then ask about the integration method. See if they provide any plugin or easy to integrate code.
6. Is There A Fixed Or Rolling Reserve?
Every High Risk Merchant Account provider will ask for some kind of Reserves. Depending on the type of business this can be a Fixed or Rolling reserve. In rare cases, PSP asks for both. Be sure that you are comfortable with the reserve terms. Rolling reserve ranges from 5% to 20% depending on the industry type.
7. What Are The Monthly Charges, Wire Fees, And Chargeback Fees?
Ask your processor for a detailed description of charges that includes.
- Monthly Fee
- Chargeback Fee
- Refund Fee
- Fixed Transaction Charge on top of TDR.
Companies prefer to add margins on these charges depending upon case to case basis.
8. What Is The Payout Schedule Offered By The High Risk Merchant Account Provider?
Every business owner wants to maintain the cash flow. A regular payout is important to maintain cash flow. Be aware of the payout schedule of the payment processor. Processors will send you schedule for the payouts if asked for. Be aware that some High Risk Merchant Account Providers may be interested in delaying the payouts as much as possible. Ask for the terms in black and white.
9. How Efficient Is The Billing Support?
Check if they offer 24/7 support. See if they offer chat, phone, web, and email support. Active billing support helps in reducing billing issues and sales decline.
10. Where Is the High Risk Payment Service Provider based?
Genuine companies will never hide there location. Most of these companies display their address and registration number on the website. It is vital for you to know the address of the processing company.
11. What Is The Location Of The Merchant Acquiring Bank?
It may be difficult for you to get the exact name of the acquiring bank. Try to ask the processor about the country where the acquiring bank is present. Some cards might not work on few BINS (Bank Identification numbers). Some card issues block few bins. This works pretty much like the way websites owners block traffic from any nation.
12. Do They Allow You To Use Any Chargeback Alert Service?
As a High Risk Merchant you have to be extra cautious about chargebacks and disputes. Make sure your processor is comfortable with chargeback alert services. It helps you in extending the life of your contact with the processor.
13. Who Can Suggest The Best Credit Card Processing Company For My Business?
There are many parties involved in the Merchant processing industry. ISA(Agent), ISOs, MSPs, PSPs and acquiring banks work hand in hand for a common goal. Agents can help you find the perfect payment processing company for your business. The agent will help you to identify the right processor for your business type. Every processor does not onboard merchants from all the industries. Your agent will help you to get connected to the right processor.
Card processors have their internal risk policies and roadmaps. Some processors only onboard merchants from the ECommerce industry. Some like onboarding businesses that accept high-value transactions. Your agent will give you the best suggestion based on the experience he has gained over the years.
14. Why Is It Hard For Banks To Say Yes To A High Risk Merchant Like Me?
Your Business types experience high Chargebacks and refunds. The government guidelines prevent the processors from onboard businesses from your industry type. Personal credit score of the business owner is bad. Banks don’t want to invest time in acquiring risky accounts. The financial position of the business owner plays a critical role in merchant acquiring. Banks want to rely on customers that have strong financial standing.
15. What Are Documents And Compliance Requirements For A Credit Card Processing Account?
We recommend you to provide a completely filled application to the payment processor. On the merchant account application, you will find the list of documents or the KYC documents. The most common documents are.
- Identification and Address proof of all directors.
- Business licenses and recent 3 months corporate banking statement.
- Processing history if available.
- Utility bills or Personal banking statement of all directors.
- Whois certificate or Domain registration proof.
- If you sell tangible products then a supplier agreement or vendor agreement.
- Cancel check of the Business Bank Account.
- If you have represented any third party brand as a partner on your website. Then the processor may ask for the proof of business relationship.
- The website must have detailed description and specification of all products.
- Mention the subscription and service delivery time frames on your website.
- Return and Refund policy should offer buyer protection.
- You must have SSL certificate attached to the domain.
- Business address, phone number and support email must be visible on the website.
Apart from the above listed, Processor may ask for extra documents on a case by case basis.
16. What Role Can The Customer Care Team Play In Keeping The Merchant Account In Good Standing For A Long Time?
Finding a customer is not a challenge. The most crucial element is to keep the customer happy throughout the sales process. This also includes post-sales support and service. Your customer service team must build professional relationships with your clients. They are the face of your company. Educate your team to resolve issues in the first instance.
In case if the issue is not resolved then put in place a proper escalation channel within your team. You must ensure that none of your team members get into an argument with customers. Hire a strong retention team which will be handling all the refund request. Try some CRM solutions that will help you to manage your customers better.
17. What Are Some Alternatives To Credit Card Payments?
Most of the economies across the world are growing at a very fast speed. Financial Institutions have found many alternative ways of payment processing. Few of the most common alternatives are Electronics check or Bitcoins. It will still take time for bitcoin to get a legal status across the world. But Electronic check, is a 100% legal solution across the United States. If you sell your services and products in the United States then you can use echeck. The system verifies the account number, routing number, and availability of funds. High Risk and Bad Credit merchants can get the echeck payment gateway option.
18. What Are The Most Common Shopping Carts Used By Merchants?
These days many CMS or Content Management Solutions are available. These CMSs allow the business owners to create websites in less time. The most popular CMS are WordPress, Magento, Joomla, Prestashop, and Opencart. Merchants can integrate shopping carts on these platforms. The most popular shopping cart used on the WordPress framework is woo-commerce. Once installed this plugin creates shopping Cart on the website.
Business owners can upload their products by adding images and description. Most payment service providers will help you with a WordPress Woo-commerce plugin. With this plugin, you can integrate the API into your website and start processing.
19. My Credit Is Bad, Can I Still Get A Merchant Account?
Business owners who start with limited funding face financial challenges at some time. These financial challenges create bad impact on the personal credit score. Financial institutions use credit score to identify the level of risk. Most Institutions will say no to any merchant with bad credit.
You can still apply to smaller processing companies and offshore Merchant Account providers. These organizations charge high transaction rates from merchants with low or bad credit. One can also start accepting echeck or cheque 21. This is the best alternative to the traditional Credit Card processing account.
With every echeck payment gateway, you get a virtual terminal. With this, you can accept orders over the phone. After integration, your customers can place orders online as well. Customers only reveal the account number, routing number with few basic details.
20. How To List The Products And Services On My Website?
With the shopping cart on your website, it will become easy to upload products and services. Upload the correct images and display the specifications of the product. If you sell tangible products then the display the time frame of service delivery.
21. How Are Safe Offshore Merchant Account Providers?
Payment Processing companies make money by allowing you to accept transactions. They will never like to close your account if it is in good standing.
Offshore processors follow the same guidelines as any domestic processors. They have to follow the guidelines of the well-known card brands and Governments. These solutions may cost a bit higher but they can offer accounts for many High Risk Industries. Payout period can be longer but at least they allow you to process transactions.
22. How Can A Merchant Avoid Chargebacks?
Chargebacks happen because of many reasons. Friendly chargebacks are a very small percentage of the same. There are many ways to reduce and avoid chargebacks. Our Ebook talks about the best practices that can help.
The first suggestion is to get strong customer service team. They should be capable enough to handle all kind of disputes. Regular communication with the customer also helps in identifying any future issues. Selling high-quality products can also solve this problem to a great extent. Inferior quality products leave a bad impact in the minds of the buyer. You can use technology to reduce and avoid chargebacks. Get real time chargeback alerts. The moment the customer calls the card issuer you get an alert(Not all the times but most of the times). This gives the merchant a window of opportunity. Merchant can communicate with the customer and resolve the issue. If lucky then the customer will be happy to stay with you. In case if the customer insists on a refund then issue a refund. Under both the circumstances, you are preventing chargebacks.
23. How To Get A Bigger Processing Limit From My Credit Card Processing Company?
Your payment service provider may not allow you to go beyond a specific monthly sales volume. This is a risk mitigation step. Over the time based on processing trend the processor may offer a higher sales threshold. As a merchant, you need to focus on reducing chargebacks and refunds. The most beautiful billing statement will have less than 0.5% of chargebacks. Offshore merchant account providers may offer a bigger monthly processing limit