Q: My online business needs high risk credit card processing, what are my best options?
A: From dating sites to international merchant accounts… there are dozens of companies that only qualify for high risk credit card processing, and of course, the fees are much higher. For companies running on tight margins, these high rates can mean the difference between operating at a profit or operating at a loss.
Here are some ways you can save money on high risk credit processing:
How to get your business re-classified
Which criteria is causing you to fall into the high risk category? Is it your business model? Do you have high rates of fraud and/or chargebacks?
Sometimes, it’s actually possible to have your business be re-classified and no longer be considered a high risk merchant account by just making some small changes to your billing procedures, website, etc.
For example, if getting a lot of chargebacks is your problem, there are some high risk credit card processors that utilize special formulas and procedures to minimize their occurrence. They take extra steps to detect possible fraud and go that extra mile to fight those frivolous charge backs by customers. The best high risk merchant services will also advise ways for you to change your business practices to further reduce the chargeback rate. When all is said and done, this may qualify you to be re-classified in a different risk tier.
Of course even if you follow the above advice, there are types of businesses which will inevitably still be classified “high risk” simply because of the industry they operate in. When that’s the case, then you need to find ways to get cheaper processing fees.
How to get your business the best rates
If the type of business you operate will inevitably be classified high risk no matter what, then it’s extremely important that you get the absolute best rate possible.
Did you know that high risk credit card processing companies are notorious for ripping off their clients? This is because they know your processing options are limited, so they take advantage of that and milk you for all they can. You can’t let this happen.
Simply put, what you need to do is shop around and compare rates from multiple card processing companies. When you do this, you will definitely be surprised how much the rates can differ for high risk merchant accounts – a few charge cutthroat competitive rates, but most of them charge drastically inflated prices. So don’t get ripped off by just sticking with your existing processor or going with the first one you get a quote from.