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Important Things to Know If You Are a High Risk Merchant

September 26, 2018

For those who do not know, it is a fact that rookies entrepreneurs face a really difficult time in the high-risk category industries. To be really precise, what they face is the harsh conditions of the payment processing units in the high-risk industries. The rules and regulations are not there to guide the business owners, instead, they are there to strangle them. The guidelines are not supportive in any sense of the word. That is what young businesses face when they enter the high-risk realm.

The world is now shifting into the cashless domain where the use of cash is supposed to be seldom. The world now is based on an invisible electronic network of financial institutions that control the transfer of money via. Given the above information, entrepreneurs operating in the high-risk industry face a really tough time finding banks and financial institutions to lend them cards for making transactions and accepting payments from clients.

High Risk Merchants in a Cashless World
As the country slowly shifts to cashless and digital transactions, business leaders in high-risk industries such as online gambling, adult entertainment, Forex services, and tourism, struggle to get card processing services from issuing banks. Businesses such as adult entrepreneurship, porn companies, strip clubs, gambling companies, online betting companies, currency changing companies, online pharmaceuticals etc. are the ones who face the axe.

The thing is that customers today prefer modes of payment such as online banking, credit cards, debit cards and, online wallets. Therefore, as a business owner, you need to make sure that you have these services available so that your customers have a hassle free payment experience. However, banks and other financial institutions do not work that way. They do not provide the same rates of interests and have the same frame of functioning for certain industries that operate in the high-risk domain. I mean, it’s pretty logical and there is a reason why it is tagged as the ‘high-risk domain’. If you have a business deemed by the banks as ‘high risk’, there are certain things you should keep in mind in order to survive in the industry. Have a look –

Things to Know As a High Risk Merchant

  • Customers will always look for hassle-free payment
    As a business owner, you should know by now that customers are ruthless. All they care about is hassle-free ways to shop, to buy, to pay, and to get home as soon as possible. So, in the world of cashless payments, what do you think they would want? Cashless payments, of course! Although in the United States, almost 60 percent of the people still use cash, the world is changing and so should you. Get online payment gateways or better, get a merchant account and incorporate eChecks for payments.
  • The competition is tough
    The competition in the high-risk industry is tough and there are many entrepreneurs who are trying to do the same. Keep your eyes open and your mind clear.
  • Observe chargebacks as a threat
    Chargebacks are threats, as simple as that. Chargebacks can cause up to a loss of 6 percent of the total sales figure.
  • Just get a high-risk merchant account: It’s easy!
    Getting a high-risk merchant account is simple. Just subscribe to it. Global eChecks is one of the pioneers in the high-risk merchant account business that has provided hundreds of merchants an easy way to accept payments via eChecks.

All that being said, getting a high-risk merchant account may as well be the final solution to the problem of payment processing in the high-risk industries. So, what are waiting for then?

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