What is the Best eCommerce Payment Processor for High Risk Websites?
Many new eCommerce website owners ask “what is the best eCommerce payment processor for high risk websites and businesses? Well, there is no one size fits all solution. When it comes to the type of eCommerce you plan to operate, one of the first things you need to do is look for a high risk payment processor. If you’re planning on selling anything that isn’t mainstream, you will most likely have trouble getting approved for a standard VISA and MasterCard merchant account. So it’s important to understand how you will be able to accept credit card payments.
A high risk website is an online store that sells adult services, tobacco products, firearms, and other potentially controversial products. When these types of sites start accepting credit card payments, the business owner might increase their risk liability to customers, banks, and state/federal regulators. When this happens, your merchant account provider may put limitations on your account. Limitations can include requiring more detailed personal information from you or putting you in higher risk status.
eCommerce payment processors are the most vital piece of any eCommerce website for obvious reasons. You won’t be able to process payments if you don’t have a payment processor. The challenge comes with finding a processor that fits your business requirements. Which is why I’ll tell you what it takes to process high-risk transactions. There are many payment processors out there, but most of them aren’t friendly towards high risk sites. So you’ve got to choose wisely.
How Payment Processors Establish the Criteria for an eCommerce High Risk Website.
In order to do a proper comparison, you must first establish the criteria for a high-risk website. What qualifies one eCommerce website as high-risk?
Firearm and Ammo Sales: Online gun sales are considered to be high risk because of the purposeful purchasing and shipping of potentially dangerous items.
High Risk Products or Services: Ecommerce sites selling certain products or services may be deemed high risk due to the nature of their business; for example, an online tobacco store or an adult products shop.
Direct Marketing and Nutra: Nutraceuticals, Supplements, Diet Products, Vitamins, Herbal Remedies, Beauty Products.
• Subscription Watches, Jewelry, Perfumes, Handbags. • Free Trial/Subscription/Straight Sale. These businesses are considered high risk because they tend to have a high number of chargebacks than the average eCommerce site. They require extra vetting and monitoring of transactions due to the nature of the business.
These are just some examples of eCommerce sites that may fall under the category of high risk businesses. Your business may not fall into any of these categories. But you should still consider your own circumstances and determine what makes your business risky in order to compare payment processors appropriately.
Features and Benefits of FintechMerchantAccounts for eCommerce High Risk Processing.
Not all payment processors are created equal. If you have a high-risk website with adult material, MLM Marketing, or other types of products and services that are considered to be high-risk industries, then you’ll want to make sure to choose a payment processor that is best suited for processing payments for high risk websites. FMA specializes in processing transactions for companies whose business is considered to be high-risk. But above all, we are a payment processor that understands these risks and your needs. We are well-known for our Customer Service and Security features. You can accept all methods of payment. Including Credit Cards, Debit Cards, ACH, and eCheck.
If you are an online merchant, you need to understand the basics of chargebacks. High risk credit card fraud and chargebacks can cause millions in losses for e-commerce businesses. Chargebacks occur when a customer disputes a charge on their card statement. Thus demanding the seller to refund the money. It’s not uncommon for shoppers to dispute charges they think they shouldn’t have been made to pay. They generally do this within 60 days of their card statement being sent out.
The chargeback process can be frustrating for businesses in several ways, but it’s particularly problematic if there’s nothing wrong with what was delivered or sold. Sometimes customers will accidentally dispute a charge, thinking it was a larger purchase than it really was. Other times, they might be trying to get something for nothing. Either way, the result is the same—the seller is out whatever they charged for the product or service.
In legal terms, a chargeback is an argument made by the credit card user regarding one or more of the following points:
1) The merchandise or service was not what the customer ordered.
2) The merchandise or service was defective in some way.
3) The buyer didn’t authorize the transaction.
Most credit card processors are forewarned about the risks of high risk websites and will drop your account if any problematic patterns are detected, leaving you in the lurch and without a way to accept online payments. What’s more, many merchant accounts don’t allow you to install any security measures which would prevent possible disputes down the road. Our proprietary software can reduce chargebacks, increase your sales and grow your business. Our solutions use risk-based predictive and behavioral analytics to establish a higher level of understanding around high-risk transactions.
What You Need to Open Your Account.
There are a few things you need to do before applying for a high risk merchant account. First, make sure you have the following items:
1. Your business name registered with your state.
2. A federal employer ID number.
3. An EIN (Employer Identification Number).
This information is all fairly easy to obtain. The most common way is to register your business with your state, which will require the name of your company and your contact information. It will also ask for a business address and company officers. You can get an EIN from the IRS, which is free and only takes about five minutes to complete on their website. Once you have these three things you’re ready to apply for a high risk merchant account!
So to answer the original question what is the best eCommerce payment processor for high risk websites and businesses?.. It’s clear that FintechMerchantAccounts is a leader in all of the categories on this list, and we stand out next to our competition when it comes to the whole package. Displaying a clear focus on security, FMA offers a straightforward setup process, excellent customer service, easy-to-use API, and last but not least, stellar pricing for high-risk websites. Contact us today to and we can have you ready to accept payments within 48 hours.
I am including some additional posts and articles below for you that our clients have found helpful.