Would I need a high risk merchant account? What are they and who do they help?
It is important to know what type of merchant account will work best for your business. Learn about all the things that can make your business high risk and understand how to protect yourself and your business, not to mention your customers. The more you understand about high-risk business accounts, the better off you’ll be when it comes to protection.
Temporary Locations
If you don’t have a permanent location for your business, you may want to consider a high-risk merchant account. This type of business often makes potential customers nervous. Nervousness stems from customers’ inability to come back if they have a problem. With a business that jumps from one location to another, you could easily get up and walk away before a customer receives your product. It would be very difficult for them to find you and this could result in a very unsatisfied customer. Even if they receive your product, it can be disconcerting to use a business that doesn’t stay in one place for very long.
little personal contact
If you have a primarily online merchant account, you may also want to consider it high risk. The less person-to-person contact you have with your customers, the higher risk your business is considered. There are a lot of things you could be risking when you don’t have any personal contact with any of your clients. It’s important to know that just because your business may be considered a high-risk account doesn’t necessarily mean it’s a bad thing. You may be at greater risk than other accounts when it comes to customer dissatisfaction due to the way your business operates rather than your ability to serve your customers.
What do high-risk business accounts do?
A high risk merchant account will be able to provide your business with a number of different services. While each account is different, they will generally provide the same type of services. They will break down the specific type of products or services you are selling and determine what to do with the best possible form of delivery, as well as what the best payment methods should be for your business. They will also have a regular review of the fee structure as well as the risk status of your products and your business.
You can expect them to review the relationship you’ve had with other credit card processing, as well as any past refunds you’ve had in the past.
There will also be training, usually on the types of receipts, bills, or documents, as well as what tracking information to keep versus what to throw away. You will also be given multiple types of payment options. Anything from electronic checks, debit or credit cards, as well as various other types of payment options.