When searching for a high-risk credit card processing services provider, it's important to consider several factors. You might be tempted by claims of deep discounts offered by many high-risk providers, but you should know these “deals” are often too good to be true. Let's take a closer look at why you should be aware of discounts for high-risk merchant accounts.
The Problem with Discounts for High-Risk Merchant Accounts
There are numerous reasons to be leery of high-risk merchant services providers that offer large discounts.
- Hidden Fees: You might get initial discounts, but your merchant services provider could be recuperating costs by sticking hidden fees into your monthly statement.
- Sketchy Contracts: You could end up finding yourself stuck in a contract with unfavorable terms, like large cancellation fees, equipment and software costs, and more.
- Initially accepted, but dropped later: It’s not uncommon for high-risk businesses to initially be approved for a merchant account, only to have it canceled later once the processor or bank learns more about your business.
- “Instant Approval”: Some providers don’t promise discounts, but talk about instant approval instead. However, it's important to understand that there is no such thing as truly instant approval for any type of merchant services account.
Make Sure You Can Trust Your High-Risk Merchant Services Provider
As you search for a high-risk merchant services provider, you should consider that if the offer sounds too good to be true, then it probably is not. You should research high-risk providers and find one that has a successful track record and is trusted by other high-risk businesses. It is also important to make sure the services provider offers solutions to meet all of your needs. Take time to fully understand the terms of the contract offered by the services provider and avoid getting locked into a long-term contract.
The Problems with PayPal and Square
Some businesses opt for solutions like PayPal or Square when searching for a payment processing partner; however, you should think twice before you choose to rely on a third party for your processing needs. With solutions like PayPal or Square, there's a good chance the equipment provided through these third-parties won't be sufficient to meet your needs. It’s also likely that the equipment will come with minimal flexibility as well as complex installation and setup processes. (Did you know that Square can't be used with Windows phones or the first generation Google Nexus 7 tablet?) With minimal flexibility, you greatly limit your payment processing capabilities.
Also worth noting is that service providers like PayPal and Square tend to come with higher fees than what you'll enjoy with a provider like BankCard Services that specializes in high-risk payment processing. In addition to a percentage of each sale, you might have a per-transaction fee, which can quickly eat into your profits. Some third parties even charge you for equipment and then tag on setup fees. If you sign a contract, you risk having to pay an early cancellation fee in the event you no longer need or want the services offered through the third party.
BankCard Services is your go-to services provider for high-risk credit card payment processing. We specialize in high-risk payment processing and take pride in knowing we offer completely transparent terms, so you don't have to worry about hidden fees or sketchy contracts. When it seems that no other service provider will support you with your credit card processing needs, BankCard Services is here to help. Our goal is to provide a smooth high-risk payment processing experience for your business with a variety of tools including fraud protection and chargeback mitigation. Contact us today to learn more about securing a high-risk merchant account through BankCard Services.
Mickael is an entrepreneur and the Co-founder of Bankcard Services. He is a family man and loves technology, innovation, and soccer.