Maximize Revenue with the Best High Risk Merchant Account Solutions

Merchants in high-risk sectors are presented with difficulties not typically faced by standard merchants, including larger amounts of chargebacks than normal, stricter underwriting guidelines for high-risk merchant accounts, fewer options for approving payments from banks and other financial institutions, and additional scrutiny of the merchant by banks/financial institutions. In selecting the best high risk merchant account solutions, you will have the ability to maximize your revenue, improve cash flow, and ensure that your business remains operational during periods of change.

1. Increase Payment Approvals and Decrease Payment Declinations

A significant amount of sales lost within high-risk industries is due to payment declines. The typical merchant processor will decline an application for payment because of the classification of risk associated with the applicant's products or services, irregular billing patterns reported by customers, or transactions initiated internationally on behalf of customers.

Through the use of specialized underwriting practices and risk scoring systems employed by high-risk merchant account providers, they can offer a higher number of approvals for payment transactions without compromising the merchant's ability to recover fees associated with chargebacks. As a result, merchants will have:

• Increased number of authorized payments

• Fewer lost sales resulting from the bank's decline of a transaction

• Increased number of approved payments for international transactions and high-ticket items.

Using a specialized high-risk merchant account, merchants can replace a significant portion of revenue that they would otherwise lose due to bank declines.

2. Keep Cash Flow Consistent with a Safe Method of Payment Processing

If payment processing is erratic, it can cause catastrophic problems for high-risk businesses. A sudden freeze or termination of a merchant account can equal millions of dollars in lost revenue.

If you have a stable high-risk merchant account, you will have:

• Reliable payment channels that are designed for your high-risk business

• Expected timing of funds to be settled

• A merchant account that will have a long life

• Backup merchant account(s) for redundancy

With this stability, the revenue coming from your high-risk business will continue to flow throughout your peaks and valleys and throughout your rapid scaling.

3. Lower Your Chargeback Fees and Prevent Fraud

Chargebacks are one of the greatest threats to revenue in high-risk markets. Too many chargebacks can put a merchant account on reserve, incur higher fees, or even lead to termination of the merchant account. A high-quality high-risk merchant account has enhanced fraud protection, including:

• Fraud filters that are updated in real-time

• 3D-Secure verification

• Velocity checks

• Chargeback alerts and early warning notifications

• Authenticating customers

If fraud and disputes can be reduced, revenue will continue to grow rather than being frozen due to chargebacks.

4. With More Payment Methods, There Are More Converts

When you provide customers with more options on how to pay, you increase the likelihood that they will complete a purchase. Most high-risk merchant account providers allow you to accept:

• Credit Card/Debit Card payments

• ACH/Electronic Check payments

• Recurring subscription billings

• Global/Cross-Border Payments/Currencies

• Digital Wallets (as permitted by the provider).

Giving customers access to the way they prefer to pay results in a decrease in cart abandonment rates and an increase in total sales.

5. Optimized For Recurring Billing/High-Ticket Purchases

Many high-risk businesses rely upon recurring subscription models or high-value sales transactions. Best-In-Class high risk merchant account providers will customize their solutions based on the following categories:

• Recurring Payment Models

• Large Purchase Tickets With Increased Tolerance For Fraudulent Activity

• Multiple Payment Options Available For Installing Or Splitting Their Payments.

These factors allow a company to grow its business by increasing its revenues without being limited by an individual processor's high-risk billing restrictions.

6. Increased Profit Margins and Clear Fees

High-risk businesses are often charged fee penalties or rate increases (done without warning), whereas specialty providers will create an easy-to-read fee structure, provide custom pricing based on the level of risk associated with the customer's business, lower the fees associated with chargebacks and fraud, and offer a discounted rate for those customers who have proven stable processing habits. By creating stable processing habits, the business can achieve lower operational costs, resulting in greater profitability and increased revenue over time.