High Risk Credit Card Processing Techniques To Avoid

As a retail merchant seeking to gain a greater number of customers in today’s fiercely competitive market, high risk credit card processing may be an important method promoting business. Therefore, choosing a processing merchant account to handle high risk processing is a decision requiring some understanding to be successful. If you have been turned down for a traditional bank merchant account, there are alternatives but certain areas to avoid.

Avoid Preset Limits

Many companies specializing in high risk credit card processing will grant accounts with preset limits. Although this looks attractive for new businesses, once your marketing methods prove successful, when your business exceeds the preset limit, the processing provider will charge a penalty fee that will eat away at whatever profit margin you might be working on. It is important to secure an account with unlimited volume or, at least, a plan for stair-stepping fees associated when higher volumes are attained. Better yet, obtain an unlimited volume account from the outset of your new business venture. Shop around comparing different high risk credit card processors and the plans they have to offer. Use the Internet. It’s very convenient and you will find a vast resource for your processing needs.

Steps to Consider

  • Always read the entire agreement and ask as many questions you need to gain a clear understanding about all the features, limitations and restrictions
  • Carefully estimate your monthly sales and be careful if selecting a limited sales account because if you plan to grow your business, you will not want to pay excessive fees when exceeding processing limits
  • Do not base your decision making process on a plan’s discount rates or fall for such marketing ploys as free registrations or time-limited reduced fee come-ons. Examine the entire merchant account calculating what monthly costs might be charged by the provider making up for those eliminated or reduced fees used in marketing attempts to gain your business.
  • Make sure to read and understand all aspects about the high risk credit card processing plan before signing any contract
  • Seek out reliable, trusted merchant account providers that will negotiate terms for gaining an unlimited merchant account.
  • Look for accounts that offer secure payment gateways and virtual terminals that allow for online processing where expensive card swiping equipment is not necessary if the Internet is your virtual store and only retail outlet. Make sure all online transactions are protected by encrypted server transactions.
  • Avoid merchant accounts that do not allow for real-time high risk credit card processing solutions thus tying up funds that the provider states needs to clear in a specified period of time before you gain access to the funds.
  • Due to today’s Internet technology, do not settle for traditionally mailed transactions to have the ability to review sales reports. Make sure your high risk credit card processor offers online viewing and reports.
  • Make sure the plan offers all types of processing for all types of credit and debit cards. Avoid merchant accounts that possess different fees for processing cards based on individual volumes made through selected brand card purchases. Fees assessed, and charged, need to be based on total business sales volume.

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