3 Pillars To Build & Grow Online As A High-Risk Merchant

Elisa Posted by:

The business environment is extremely challenging for online businesses and the game gets even more serious for those who fall under the category of high-risk industry. If you are struggling to avail merchant account services in general that ensures success of a high-risk online business then you should follow three basic rules.

When you take the right route to success as an online high-risk enterprise you are going to certainly reach your destination.

Rule Number 1: Nurture Cordial Relation with Merchant Account Provider

There is no denying that every modern business in today’s world needs payment processing services but when you are running business exclusively through your website or in simple words you are an e-commerce business you should be even more serious about associating with a secure credit card processor.

This will ensure that every single customer transaction on your website would be easily processed. Or else it might result in slicing off your revenue since your customers are upset. Businesses with a tag of high-risk business need to pay extra attention and work smartly to find out some major bank or processor for their banking requirements. Setting up a merchant account and maintaining it can be really daunting with frequent and high chargebacks.

It is still possible to have your merchant account opened and keep it working for a considerably long period. Take the following steps to increase the likelihood to get banks (or merchant providers) appreciation in the form of their processing services:

Maintain Transparency

There can be some concerns and stories behind hiding your story but honesty is the best policy when it comes to availing merchant account services. Testing times might never end for high-risk entrepreneurs but they can be better prepared with staying transparent while filing in for merchant account. When you have your financial records, tax documents, licenses and everything else neatly arranged in one file, things will appear to be less of an ordeal.

High Volumes May Not Be Apt

In the early days of your relationship with payment processor you should go slow on the processing volume. Don’t ruin your relationship at the nascent stage with higher volumes. Going with lower-than-average processing volume is just fine. Besides, you may be provided with less friendly rates when compared to your brick-and-mortar store days. Try and get comfortable with the fact that businesses making online sales are considered to be high-risk and this is why you are getting little leverage, at least in the initial days of your agreement.

If you succeed in getting consistent results for a period of 6 months or so and there have been no major complaints from your end you can push it for higher volumes then. Sooner you will see ball is in your court and the merchant services will be working for you in a better way.

Have Low Chargebacks

Its positioning on the list has least to do with its importance in cultivating a strong relationship with the card processor. That said, keeping chargeback ratio at an acceptable level is much difficult in practical. Nevertheless, it can be achieved if you manage to provide unparalleled customer service, great product or service, acting honest on your business site and via customer service channels.

Rule Number 2: Professional Chargeback Management

No matter how particular you remain in keeping up with the aforementioned precautions you can still be caught by chargeback monster. Therefore, it is highly significant to invest resources and time in chargeback management.

Dealing with chargebacks in the professional way is the only way out of this huge challenge. Growth and success are impossible to achieve without keeping a check on chargebacks. Make sure you put some resources into carving an inclusive chargeback management system.

Use Provider Software

Majority of merchant services are coupled with chargeback management system, especially when it is about high-risk enterprises. If they have not talked about it, take the initiative to confirm for your own good. It is imperative for every business to address chargebacks without any delay. Your processing partner can be really helpful in doing so. At the time of getting into an agreement ensure you understand what they give you in name of chargeback solution so that you are mentally prepared to use them as and when the need arises.

Focus On Customer Service

There is no alternative to this. A business can foster and have happy customers only if it provides exceptional customer service. It may be interesting to know that some chargebacks happen owing to some simply avoidable clerical errors. This is when competent staff’s role comes into play. Rendering 24X7 support services can be critically important for alleviating chargebacks. It is quite a possibility that you cannot sustain round the clock customer services at this stage. If it is so, then keep it clear when customer service is available at your site in one form or other.