High risk credit card processing is a hard label for most businesses to hear. Not only can it limit your profits, because it comes with higher fees, but it can also limit your options for payment processing and other merchant services. Understanding what makes a merchant high risk can help you take steps now to avoid the designation saving your business a great deal of money and no small amount of pain in the future.
Avoiding the High Risk Label for Your Business
Prevention is almost always the best cure. That is certainly the case when it comes to being identified as a high risk credit card processing business. It is much better for the sake of your business to exhaust every option to avoid a high risk designation than to try to dig yourself out of one once it’s been assigned.
There are a variety of things you can do to help your business avoid red flags or raising alarms.
Keep Your Processing Partner in the Know
Keep your processing company informed. The goal is to avoid them feeling as though you have suspicious activity going on. In other words, if you’re having the mother of all sales month for your business and expect above average sales volume, inform them in advance to avoid sending red flags.
Reduce Chargeback Risks
Practice safety measures to prevent fraudulent charges and reduce the risk of chargebacks. This includes creating policies of responsiveness where you respond to the needs and complaints of customers promptly and effectively to avoid chargebacks, posting return policies clearly so customers understand their options, and offer returns on your terms rather than leaving customers feeling as though their only recourse is to turn to their credit card companies to resolve issues.
Give Customers Opportunities to Connect
Make sure customers can reach you. This includes posting contact information, providing complete return instructions, and following through on complaints to prevent chargebacks. The more options you give customers to discuss their problems with you, the less likely they are to resort to chargebacks. This includes:
- Toll-free or local phone numbers
- Physical addresses where they can send letters or speak with you in person if you’re local
Many problems can be solved simply by hearing what your customers have to say, without requiring chargebacks or even refunds. Being proactive and communicative builds important relationships with your customers and help you avoid being labelled as a high risk merchant.
Secure Your Web Experience
Security is a big deal with consumers today. That is a certainty. It’s also a huge deal with prospective payment processing partners. Encrypt your website. Not only does this aid in preventing hacking, but it protects your online presence and your customers’ private and financial information.
Bring on the Tech
Upgrade to EMV technology. The EMV (Europay, MasterCard, and Visa) chip technology is designed to prevent fraud and protect your business from fraud-related chargebacks. Not only that but having the right type of chip readers in your business protects you and your payment processing partner if fraud is detected after the fact.
It isn’t easy getting ahead in business today. Competition is fierce, and economies are no longer local. You need to compete on a global scale. To do that, you need a winning partnership to pull you through. The partner you choose for your merchant services is one of the most important factors in your ability to accept credit card and other payment options. Choose wisely.
BankCard Services not only works with businesses that have a chance to being considered high-risk merchants but also helps you to reduce that chance. Contact us today to learn about the ways we can help you minimize your risks while offering superior high risk merchant account services to your business and your customers on a month-to-month basis, with no long-term contracts.