What is a High-Risk Merchant Account & Why it is Important for Your Business?

If you are doing online business with more risk of chargeback and want credit card processing for small businesses, you should have a high risk merchant account. But before that, you have to know about a high risk merchant account and its importance.

What is a High-Risk Merchant Account?

It is a payment processing account for businesses that are considered to be of high risk to the banks. High-risk businesses are more prone to chargeback so they come with higher fees for tier merchant services.

If your business comes with higher chances of chargeback, or your business history shows many previous chargeback and payment refunds, your acquirer bank may put a rolling reserve amount (money that would cover the chances of fraud or chargeback) on your merchant account. Many companies provide platforms for credit card processing for small businesses.

Benefits of a High-Risk Merchant Account

It seems that there are so many drawbacks of having a high-risk merchant account including higher fees and more processing charges but here are 5 benefits of having such an account for your business.

1. Global Coverage

Every online business owners want to take their business to a global level where they can access larger markets. If you have a High-risk merchant account, you can grow your business by accepting payments in multiple currencies and you can sell your products or services to clients of foreign countries at low risk.

2. High Chargeback Protection

If you have a regular merchant account and once this account crosses the chargeback threshold, your acquiring bank may terminate your account. It would take time to reopen your account and during this period, you can’t accept online payments. Even opening a high risk merchant account would take time and it may hamper your business growth.

If you already have a high risk merchant account, such a problem would never happen. It’s more beneficial to have a high risk merchant account in a running condition, as a single chargeback exceeding doesn’t end with closing your account. However, it doesn’t mean that you can neglect your chargeback management.

3. Business Expansion

With a low risk merchant account, you can’t sell some restricted services or products. But you can do business with such products or services by using your high risk merchant account. So, it would create more opportunities for the long-term growth of your company.

4. More Profits

Through a high-risk merchant account, you can accept payments from many countries. You can do business at an international level and it will increase not only your products or services selling but also your profits.

5. Customer Satisfaction

When your account offers local currency exchange, different credit cards payments options and improved security, your customers would be more satisfied. When your customers enjoy hassle-free payments, they are more likely to refer your service to others.

Takeaway

High-risk merchant accounts are for high-risk businesses that are more prone to chargeback. Opening a high-risk merchant account is important for your online business as it offers so many benefits like business growth, protection, global coverage and more profits.

Also Read: How to Choose the Best Point of Sale Systems for Your Business?

7 Ways to Improve Customer Experience using Point of Sale System

#1 Resolve Inventory Issues of Point of Sale System

Stock unavailability frustrates customers and affects the business revenue. Such a situation creates a bad experience of the non-recalling point of sale systems for small businesses for consumers, and they may never return back.

When integrated seamlessly, the clover point of sale system can solve this difficulty with ease. You can track and availability of stocks in-store in real-time. You will also have a low stock alert and restocking system.

#2 Provide Fast Checkout

Customers get impatient in case of a long checkout process. You can accelerate it by using the following features of the clover point of sale system:

• Barcode scanning to eliminate manual errors. It creates a good experience for customers.
• By using synchronized system features, checkout on the sales floor is possible.

#3 Accommodate Various Payment Methods

You need to offer a range of payment options to stay in this competitive market and win customers including credit card processing for small businesses. The clover point of sale system can integrate with many new forms of payment, including cash, Credit & debit cards, e-wallet systems, gift cards, QR Code, Buy Now – PayLater, touchless payments, mobile payments like Apple Pay, Samsung Pay, and Google pay.

#4 Offer Prepaid Store Credit

Prepaid store credits can attract people to return to your store again and prepare for future shopping. In this way, your regular customers only need to scan the code to accept the transaction, which is a quick as well as convenient experience.

Your employees can operate point of sale systems for small businesses by clicking the customer card, linking their accounts with prepaid cards and adding credit points to accounts of customers.

#5 Provide Multiple Options for Receipts

It would be a great help if you offer multiple options for receipts. Many customers ask for electronic receipts to save the environment and print waiting time. clover point of sale system can enhance your brand image by:

• Synchronizing the data of your customers with the eCommerce system into the centralized database.
• Providing data to create email marketing campaigns to inform customers about the latest offers based on their interests and previous shopping history.

#6 Improve Customer Service

The clover point of sale system allows you to improve customer service throughout the shopping journey. In addition to that, the clover point of sale system helps to:

• Build customer profiles and you will have personalized and tailored recommendations to each customer’s choices.
• Create superior customer service and provide stock availability information.
• Offers chatbot features for instant questions-answers service.

#7 Design Product Displays based on Data-driven Insights

Thanks to a clover point of sale system, you can collect data of available products in real-time and get metrics reports instantly. This system analysis helps you analyze the effectiveness of your screen revenue and helps you to make the right decisions.

Conclusion:

The clover point of sale system enhances your brand image and the in-store experience of your customers. It also improves the checkout performance, other retail processes, and collects data of purchase history.

Among many other points of sale systems for small businesses, Deploying a clover point of sale system in your business model is a worthy investment because this experience can help you grow your business sustainably.

Also Read: CBD Marketing – What You Need To Know To Attract Your Target Audience

5 Key Points to Check When Selecting a Payment Processing Company

The growth of E-commerce has paved the way for the rise of payment professors over a period of time with more effective payment options available to the people. This evolution is measured through advanced solutions, developing technology and customization. The payment processing company has changed because people are more exposed to newer and seamless modes of payment. This is why businesses have to keep themselves updated with the rising industry that will allow all of its customers to experience the best of the services.

#1 CHECK THE COST

Money is important to every business and even the smallest enterprises feel the additional costs and fees. Upfront costs may differ from one another, and it is generally the fees associated with a credit card processing company that can be convoluted. One should start by figuring out whether a payments processing company charges a monthly fee or per-transaction fees. Some companies don’t have monthly service fees but instead take some percentage of each transaction the customer makes. Some credit card processing companies charge around 2.75 per cent whereas others have a transaction fee of 2.9 per cent.

#2 COVERAGE METHOD

One of the best options for your business is to accept any form of payment from your customers and provide them comfort. Traditional credit and debit cards are the most common and frequently used payment methods used in the US, but nowadays digital wallets and contact-less payment options are becoming popular. Once you are equipped to accept all forms of payments you can by default accept NFC based payments. Payment processing companies can also provide a layer of transaction security.

#3 COMPATIBILITY OF RESEARCH DEVICES

Depending on your business and what you are selling and who your customers are, payment processing companies offer you a variety of options using different devices. Some payment processing companies work well on all devices whereas others get buggy.  Before you make any commitment, make sure you have checked how the processing works on several operating systems. It is always helpful to know the breakdown of your website visitors prior to making any decision.

#4 ALWAYS LOOK FOR RECURRING OPTIONS

These days software as service companies has been most common for payment processing companies. Some models work great but generally have to rely on crucial aspects of transactions like recurrent billings. In simple terms, it means that the same amount of bill is generated for the customers every month like a subscription service. A good payment processing company not only makes it easy to make payments but solves a number of other issues too. For instance, credit card processing companies can help you handle failed credit card payments.

#5 CUSTOMER SUPPORT

Most companies that have payment processing companies set up have transactions up to thousands of dollars every day. A downtime of even a single hour can cause huge damage to a business, let alone a prolonged period of time. In case something goes wrong, customer support of the payment processing company has to be available around the clock and has to provide a variety of options to get in touch. This can eventually then serves as incredibly helpful in the setup phase. All in all, choosing the wrong payment processing company could cost your business a lot of time and money and a dent in your reputation.

One must take enough time to review their needs and then choose a payment processing company that will be a great future partner for them possibly.

Also Read: Credit Card Processing Terminology: What does it All Mean?