High Risk Credit Card Merchant Services
Tips For Choosing A Credit Card Processing Services
Before you can get a credit card merchant account for your business, you have to qualify with a credit card processing company. Credit card processors need to make sure your company is financially stable and you are operating a legitimate business so they are not responsible for your unpaid debts. Prepare for a background check and get references ahead of time from your partners and/or suppliers. If you have used a credit card merchant account service before, your new provider will want a reference from that company.
If your business is considered a high risk, try working with a company that will help address any problems with your credit. To determine if your business is a high risk, credit card processing companies will assess your credit history, industry, time you have been in business and your chargeback history. If you have a high percentage of chargebacks and have only been in a business a short time, you could be considered a higher risk. Providers are also concerned with credit card fraud and will consider this risk when determining the rate they charge you. If your business falls in the high-risk category, typically your fees will be higher and you can anticipate a reserve of some sort with your credit card processing provider.
There are four major choices when it comes to choosing merchant services. Credit card companies may be able to offer these services for your business. Some banks may provide credit card processing as part of your business service so ask around. Some businesses use international merchant account companies if they have poor credit, an odd location, or some other reason that would hinder them from working in the United States. Registered credit card brokers can set up accounts with processors and may be more expensive.
A credit card machine can range from $150 to $700 for a basic model and can reach $1,000 for more advanced machines. Leasing options are also available for about $20 per month. Along with an application and set up fee, you will also be charged a discount fee for each transaction, which is determined by your credit history, charge amount and type of transaction.
In order to find the right credit card processor, you should compare three to five different companies; get any fees in writing and in a contract; ask about typical timeframes to get your funds and get their responses in writing; review the contract with your business attorney; and work with one specific person with the company you are working with. Once you find a company that you are interested in working with, check their references and look for any negative feedback, ask about their policies on chargebacks and make sure the company has a positive reputation.
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Merchant Card Service – Merchant Services, High Risk
