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How to choose a high-risk processor

Choosing your merchant service provider might not seem like a big deal when you’re starting out. What difference does it make as long as you’re able to process credit card payments online for your products, right?

You might be surprised to hear that there’s quite a lot of moving parts that need to work together if you’re going to successfully accept online payments for high risk products like supplements or CBD. As high risk processing experts, we at E-Commerce 4 IM want to help you along the way.

We’re dedicated to helping high risk businesses, large and small, grow and have the credit card processing they need. This is why we want to spend some time here to go over some things you want to keep in mind before you settle on a credit card processor.

Why finding the right payment provider can be difficult

It’s important to start selling and accepting credit cards as soon as possible for your business to thrive. However, you shouldn’t commit if you’re going in blind. The problem for most e-commerce entrepreneurs is that they don’t know what to consider when looking at merchant credit card processing for their high risk business.

There are a few considerations to keep in mind. First of all, you need to know whether you sell products or services that make you fall within a high risk category. Next is what exactly the merchant service provider specializes in. Third, you’ll want to consider your business model.

All this plays a part; whether one payment processing provider is better than another for your particular business depends on what you sell, how you market it, and what site software you use. While this can become complicated, you can always get help.

Feel free to get in touch with us if you need expert credit card processing for your high risk sales.

Consider your business type

One of the more significant hiccups you can encounter is setting up your credit card processing without knowing whether your business type is high risk or not.

If you’re in a high risk category, the issue is that most merchant service providers will be unable to provide their services to you. Another problem might be that they will offer you their services, but at unnecessarily high fees. Or worse still, they’ll let you get set up with them, only to realize later that you are, in fact selling high risk products and services and then shut down your accounts.

Unfortunately, these are precisely the kinds of horror stories we hear from new clients who we then help set up correctly for processing online payments. It can be stressful and can potentially stop you dead in your tracks.

Whether you need credit card processing, chargeback mitigation, or need help setting up a high risk merchant account, we’re here for you. We can set you up with the payment processing you need for your business type.

What credit card processor options are available?

While there are plenty of credit card processors out there that cater to a wide range of business types, some are better at providing their services to one niche over another. The vast majority of merchant service providers specialize in offering their services to standard or low-risk business types.

There are also payment aggregators, less known for their industry term, but you no doubt have heard of them. Stripe and PayPal are both payment aggregators that allow businesses to create an account and accept payments practically instantly.

Then there are payment processing specialists who focus on providing credit card processing solutions that work for more niche businesses.

For all of these, there are different pros and cons. However, if you’re selling high risk products, you’re much better off using the expert services of someone who specializes in high risk processing.

What processing and merchant service provider should you choose?

Aggregators and payment facilitators

Payment aggregators might accept your business and approve you immediately, but this is because they don’t perform a traditional upfront underwriting process. Without this process, they’re unable to confirm the risks associated with your business type fully. As a consequence, they’ll accept you at first, but often, find yourself in some trouble after you start processing credit cards.

The only step available to a payment aggregator is to hold your money, or in worst-case scenarios, shut down the account entirely.

Low risk credit card processors

Standard merchant account providers do perform underwriting before you are approved. In other words, if you’re allowed to set up an account with them, you won’t likely be shut down due to your business type. However, they’re usually not well equipped at handling things like chargeback risks – which are very common for high risk business types. This can cause shutdowns by the processor’s “risk” or “loss prevention” departments, even if your product type was carefully reviewed ahead of time.

High risk merchant account specialists

If you sell coaching services, CBD oil, or supplements and nutraceutical products (to name a few), you’re what’s called a high risk merchant. In other words, you should carefully read the terms and conditions of any payment processor you’re considering – you’re likely to find your business under their prohibited business list. However, with specialized credit card processing, you’ll be able to accept payments online with confidence.

We can help you find a merchant account and gateway that works for you. Contact us at any time for help accepting credit cards.

Let an expert set up your credit card processing

At E-Commerce 4 IM, we specialize in helping high risk businesses process credit cards online. With our help, you’ll be able to accept credit card payments without issue and with confidence. Contact us today, and we’ll start helping your business sell successfully online.

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