High-Risk Merchant Account Tips For Opening And Maintaining The Account

Are you running a high-risk business and want to know the best tips on "High-risk merchant account" opening and maintaining? If your answer is Yes, this is the right destination for you.

As a business owner, you completely understand how important it is to accept credit/debit card payments for your business's success. But do you know that not all merchant account services are equal? Today, you can get many service providers, but not all are suitable for all types of businesses. For any high-risk business, you should go with a service provider dealing with high-risk industries.

But, obtaining a high-risk merchant account is challenging work. Here, we will discuss some tips for opening and maintaining a high-risk merchant account. Let's start.

What Makes a Merchant Account High-risk?

Well, there are many reasons why your merchant account is high-risk. Various factors can make a merchant high-risk. Some of them are -

• Business types - Many businesses are more likely to experience chargebacks or frauds. Such businesses are forex industries, adult industries, IPTV, etc.
• Processing history – A merchant will be regarded as high-risk if they have previously received many chargebacks or fraud complaints.
• Credit history – Merchants with poor credit scores are more likely to be considered high-risk.
• The high volume of sales and transactions amount - A merchant's likelihood of receiving more chargebacks increases with a bigger volume of the ticket.

Better payment processing security, more dependable banking, and ongoing transaction monitoring are all requirements for high-risk merchants.

Tips for High-risk Merchants To Maintain Their High-risk Merchant Accounts

Here, we will discuss three tips to help you maintain your high-risk merchant account in a good position. So let's start.

1) Stay off the Match List

Acquirers can check whether a merchant has already been terminated by another acquirer and learn the reason why using Mastercard's Alert to Control High-Risk Merchants, also known as the MATCH list in the industry. MATCH is a database of merchant accounts terminated by processors due to rule violations or many chargebacks.

MATCH is one of many databases that serve as a "blacklist" for retailers. They aid acquirers in determining the legitimacy of the potential merchant during the onboarding process. Being included on one of these lists can be exceedingly risky for traders. While the implications for merchants from each Terminated Merchant File will be unpleasant, MATCH is the most prevalent and the only one with a global impact.

How Does MATCH and other Terminated Merchant File (TMFs) Work?

The working process of the MATCH and other Terminated Merchant Files (TMFs) are the same. Suppose you are a high-risk gateway with a high number of chargebacks, and your acquiring bank decides to terminate your merchant account and adds your business to the MATCH list. In this situation, you will try to find another acquiring bank ready to serve you.

But, before the final deal or signature, the new acquirer runs your business information through the MATCH list and checks your business history. As a result, the acquirer learns the truth and calls off the deals.

2) Protect Yourself From Chargebacks -

Chargebacks are your deadliest enemy as a high-risk business and must be prevented at all costs. Because it introduces unnecessary risk into the equation, a high chargeback ratio is risky for all merchants. Chargebacks are so risky that the consequences of having a high chargeback ratio can harm your relationship with your acquiring bank, terminate your merchant account, and negatively damage the perception of your company among card networks and your payment processor.

As a result, be aware of the chargeback ratios and do whatever you can to maintain a chargeback at a minimum.

How Can Merchants Reduce The Chargeback Ration?

There are various reasons why the chargeback ration gets increases, but not all reasons are preventable. But you can drastically cut your ration if you concentrate on the ones. Friendly fraud, chargeback fraud, real fraud, bad customer service, an error on the merchant's part, or flaws in the procedure or the goods themselves are some reasons for chargebacks. There is a way to get rid of these problems.

• Secure your merchant account – First, you should implement the fraud detection tools and ensure that you comply with the PCI DSS compliances to protect your customer's sensitive information. Also, make sure that you know the current fraud landscape.
• Thoroughly document everything associated with transactions – If you are running an e-commerce website, you must ask your customers to sign the package before release. You should track your product serial numbers and reference them regularly as a merchant.
• Audit your sales and marketing processes - Customers who feel misinformed about the good or service you provided them with are more inclined to file a chargeback or, at the very least, request a refund. Based on what you're offering them and how you portray your products and services, make sure your customers' expectations are met.
• Focus on customer services and clear communication - Customers should always be able to ask questions and have their concerns addressed. Tell them when their order will arrive, when their payment will be processed, and for how much. If they request a refund, handle it swiftly and tell them you're doing it.

3) Be Ready to Deal With The High-risk Merchant Provider -

Once you know that you are a high-risk merchant, you must look for a service provider who deals with high-risk businesses and has experience in your industry type.

Also, as a high-risk merchant, you must look for a service provider that offers good customer service, alternative payment methods, credit card processing, a high-risk gateway, etc. Although it will ask you to pay extra fees, but it will still be a reasonable price and a worthwhile investment. One such type of service provider is PayCly.

Which Is The Best Service Provider For High-risk Businesses?

Nowadays, high-risk businesses are booming, and somewhere its credit goes to the high-risk merchant account, high-risk payment gateway , and high-risk credit card processing . Today, you can get many service providers that support high-risk businesses. But the main challenge is choosing the one that suits your high-risk business needs.

One of the best and complete payment service providers is PayCly. We, as "PayCly," has experience in dealing with high-risk industries, so we completely understand what you expect from us and offer you the same. With us, the merchant can get the following benefits -

• We can accept the multi-currency so that you can accept the payment worldwide.
• We offer various payment methods, such as credit/debit cards, mobile payments, net banking, and crypto-currency.
• It has PCI DSS Level 1 compliance and also offers anti-fraud and anti-chargeback tools.
• Our services are available worldwide.
• We have 24*7 real-time reporting.
• We have world-top-class customer support services.
• With us, a merchant account can get approved within three to seven working days with proper documents.

Final Thoughts -

Above, we have discussed the three tips which help merchant to maintain their high-risk merchant account and also help to succeed in their businesses.

But, this merchant should deal with the right payment service provider, like PayCly, for their high-risk businesses. PayCly is one of the most popular and best services provider available worldwide. It has experience in dealing with high-risk industries.

To know more about PayCly, you can contact the expert team anytime without hesitation.??