Quadrapay.com has expertly helped organizations around the globe with the best High Risk Merchant Account for Web Design and SEO Companies. We have resolved to provide the most suitable and reliable resources for merchant account, payment gateway and processor to domestic and offshore merchants globally. Our goal is to be the most trusted source of solution providers for online merchant accounts and online businesses.
Web Development and SEO Industry
Internet in itself is a whole world accessible from a single point for everyone around the globe. What could be a better place than this to sell your product or services where the whole world turns into your target clientele? For a business expert the online internet platform is a ‘Sorcerer’s stone’. If one explores the true potential of online market, the business can expand multifold and maximize the profits like never before. What can be a profitable business to exploit the online market to its fullest? The answer is Web development, SEO (Search Engine Optimization), SEM (Search Engine Marketing), App development and website design. Everyone present online to sell something or other has to utilize these services.
Do the merchants providing these services also need any services? Yes, the most important one is having an online merchant account. If we have to be specific, web development and SEO companies always need a high risk merchant account to conduct their online business.
If you are facing any trouble in finding an appropriate merchant account for your high risk web development and SEO company, Quadrapay.com can help you to get the best deal. It is really important for your online business that you avail the merchant account and payment gateway with the most advanced facilities and reliable services.
Why are Web Development, SEO, SEM, App Development and Website Design a High Risk Industry?
All the high risk merchant accounts are characterized as online accounts for businesses with high chargeback history, high tickets sales, delayed deliveries, unregulated industry, recurring billing, friendly fraud instances and irregular payments. When it comes to web development, SEO, SEM and web design companies, most of the above mentioned factors that are involved in this industry, makes it a high risk industry. Being more specific, the large and irregular transaction in this business and delays in service/product delivery or billings put this industry into high risk category. Other contributing factors are recurring billing and unregulated business profiles. One more important factor that acts as the last straw is chargeback and fraud. There are numerous instances of chargeback and frauds in this industry which makes it sure that the only possibility of holding online business for this industry is availing services of a high risk merchant account processor.
On account of the above mentioned points, it is evident that this industry is in crucial need of high risk merchant account services to conduct their online business. Let’s talk about the prime work and services provided by the web development and SEO companies. From website development and management to enhancing the online marketing and adding more customers to a business, all comes under the umbrella term of web development and SEO industry. There are many giants working in this domain successfully and that makes it a very lucrative industry. As a result, there are many small companies and startups that have entered the same domain, but these companies are following illegal methods, fraudulent activities and also failed in providing apt services to their clients. This has certainly given a negative image of this industry to the world. Thus credit card payment gateway for web development and SEO industry, and merchant accounts are considered as high risk.
How to get a high risk merchant account for web development and SEO companies?
The high risk processing of merchant account for this industry is quite a game. It may look easy, but it isn’t in reality. Due to all the negative impressions made by this industry, most of the financial giants, banks and processing companies refrain from issuing merchant accounts and related services to this high risk industry. The underwriting guidelines of these banks and acquirers are so strict and stringent that only a few web development and SEO companies can clear them. A merchant in this industry must apply with all genuine documentation, good credit history, highly stable financial grounds and a well projected business frame. This is the only way to get consent from an underwriter; given the chance he takes an individualistic and optimistic look at your profile. If the underwriting related to chargeback fraud is also cleared by the account application during the inspection, approval of a domestic merchant account is assured. The trick isn’t just to get a merchant account with a domestic service provider but to maintain the same for long run as well. It would not take a second thought for the back before they shut a high risk merchant account for web development and SEO company in case of any discrepancies or over chargebacks.
If a merchant isn’t able to find domestic solution, the only way around is to look for offshore merchant account. This is because many of the domestic banks would not take up Website Development, Search Engine Optimization, Search Engine Marketing, Application Development or Website Design as safe bait. The offshore merchant account providers do charge a higher fee as compared to the domestic ones, but the chances of getting an online high risk merchant account also increases. These processors may also put provisions of a rolling reserve and hold period, depending upon the business model. It is preferred to avail a domestic merchant account because the transaction and hold period is much lesser as compared to offshore high risk merchant account providers.
What kind of services come with a merchant account?
The main purpose of getting a merchant account for a high risk business is to successfully execute online transaction for sales of products and services of a company. Once a merchant account and payment gateway is available to a web development and SEO company, they can always add the online payment facility on their website, which makes it easier for the customers to complete payment procedures. This is also beneficial for merchants, because a customer gets numerous options of payment and this further assures of more business. If we talk about the additional services, chargeback alert and notification service is one of the most important services that a high risk merchant account provider gives to its client companies. Apart from this MOTO and virtual terminals are also very important for online business.
There are no monthly minimum on most of the merchant accounts, though they do have a monthly maximum limit that is defined at the time of application for the merchant account. You can always negotiate and change this maximum limit of monthly transaction as per your needs. A higher maximum limit gives you advantage of high ticket sales with your online account.
Last but the most important service that a merchant should look for before getting a merchant account from any service provider is the payment options facilitated by the acquirer or processor. With the recent advancements in the financial market and business domain, a number of payment methods are availed for making online payments. Whether it be credit/debit card processing or prepaid card processing, echeck or check21, online transfers or wire transfers, and mobile wallets or ACH, a perfect merchant account and the best payment gateway should avail all these payment options to their clients.
What is the relation of chargeback with a merchant account?
The other way round to frame the same question is how chargeback alerts keep your merchant account stable and functional for longer time? Chargeback is very crucial in determining the stability of your high risk merchant account. The reason that web development and SEO companies are kept under high risk industry segment is the number of high chargebacks filed by the customers against these companies. As per the business ethics and various governmental rules and regulations, any dispute or complaint from a customer i.e. a chargeback must be honored by the merchant account provider or acquiring bank or payment processing company.
If we dig deeper into this topic, the most basic question is what is a chargeback? When a customer avails any services or receives products from a merchant that isn’t satisfactory or is damaged or is not what the customer sought; the customer files a chargeback dispute with the payment processing company or the customer’s affiliated bank. An inquiry is raised against the merchant from the customers end to satisfy the issue. In case the merchant fails to resolve the issue, a chargeback is initiated and the amount charged for that particular service or product is returned to the customer. Now this issue is more risky in case of a high risk merchant account because the intensity and amount of chargeback are also a lot higher.
At times, it can be a chargeback fraud but the final outcome is completely dependent on the inquiry done the payment processor, card brand, card issuer or the card issuing bank. There is always a provision of variable chargeback fee whenever a chargeback is initiated against the merchant. This adds to the negative impact of the merchant account.
For high risk merchant accounts, the industry standard of maximum chargeback ratio is less than 2%. If the chargeback ratio exceeds this limit, there are severe consequences on the respective merchant account. It may also lead to cease, block or closure of the merchant account eventually. If we have to calculate chargeback ratio for a merchant account, it equals to the percentage of total number of chargeback in a month divided by the total number of transaction in that month.
Lastly, if a merchant wants to maintain the high risk merchant account for web development and SEO company for longer time then they should avoid chargebacks. At times, many of the service providers do provide a time frame of 24 hours to resolve the chargeback issue. Thus, the merchant should ensure the best quality services to their customers and in case of any dispute they should promptly respond to the customer with best possible solution including the clause of complete refund.
Quadrapay.com advises the merchants working in web development and SEO industry to maintain a strong customer relationship and provide best-in-class services with provisions of complete/partial refunds in case of dissatisfaction of customers to avoid chargebacks. Whether it is a pre-sale or post-sale issue, the merchant should adeptly respond. Merchants should also try to have higher number of transactions in the merchant account. This will further reduce the chargeback ratio.
Which payment method is better and feasible for high risk merchant account for web development and SEO companies?
With the evolution of financial market, different payment options have also entered the market. Earlier most of the online transactions were done through credit/debit card processing. Now, there are many other options that facilitate both the merchant and the customer in a better way compared to the other payment options. Echeck is one of the most famous payment options, widely used in United States of America.
When it comes to high risk industries, the best option to make payments is to pay with echeck online. Echeck or check21 that turned popular in the last decade, because this removed the burden of taking a physical check to the bank for processing and completing the transaction. Now, the digital copy or substitute copy of the check is transferred between the banks via electronic media and the payment process is completed. This pretty much answers the question, what is an echeck? The federal law that came into force in 2004, empowered the digital copy of a check to be processed by the banks in order to complete the transaction. This helped in increasing the number of transactions and also reduced the manpower cost. The best advantage of using echeck for a merchant is that chargeback dispute period in case of using this payment method is between 30 and 60 days which is much less in comparison with the chargeback period of credit/debit cards.
Web development, SEO, SEM, App development and website design is a very important part of online and internet businesses. This in itself is a huge industry. The perfect functioning and growth of this industry can’t be possible without a high risk merchant account that provides dedicated services to the merchants of this segment.
Quadrapay.com has resolved to be the best support in establishing a high risk merchant account for your web development and SEO company, and to help you find the best payment gateway providers to expand and grow your business.