High Risk Merchant account – 6 easy mistakes to avoid

High Risk Merchant account

It’s not easy for High Risk merchants to get payment processing in the first place, so when you get it make sure you don’t lose it.   Below we identified 6 mistakes to avoid and prevent major headaches for high risk merchant account owners.

The following industries are High Risk because of their proximity to illegal activities

  1. Policy Page
    Merchants need to have a clear and easy to follow Return Policy.  Customers should know what to expect, which will prevent a lot of dissatisfaction.  This is also merchant’s best defense against chargebacks (Chargeback happens when customer disputes the transaction to the Credit Card issuer).  In High Risk merchant category, it’s very important to minimize chargebacks.  Arguing a chargeback once it was filed is much easier when you have a solid Return Policy.
  2. Contact Information
    Make it easy for customers to reach you.  Ensure that the contact page, phone number, email and your address are prominently displayed on your website.  Merchants need a good customer service department, answer the phone and respond to inquiries within 24 hours.    Keep this in mind: if it’s easier for your customer to contact their credit card and file a chargeback, they will do that, which creates a big problem for you.
  3. Delivery Tracking
    Customers sometimes claim that they never received the merchandise.  Whether it’s a fraudulent or genuine claim, a merchant should be able to prove one way or another.  For higher margin products consider requiring signature on delivery.
  4. Use Fraud Tools
    Merchants have access to automatic fraud prevention tools.  Services like Address Verification (AVS), Credit Card security codes, 3D Secure (triple verification), will catch fraudulent transactions before they are shipped.   Payment account providers and gateways provide a lot of free tools to help merchants in this category.
  5. Product Description
    Merchants can avoid a lot of headaches when the product information and description is clear and honest.   When customers receive the product and it’s not what they expected, they feel duped.  This is when they are likely to call their credit card instead of contacting the merchant.If there is a product disclaimer, ensure customers don’t miss it.   Things like: color, material, fabric, quality, accessories and all other details about your product should be understood by the customer before they placed an order.
  6. Fight Chargebacks
    High risk merchant account owners should always respond to a chargeback.  The premise here is that a merchant has done all the right things for the customer: didn’t overpromise, delivered on time and the correct product, responded to problems.  While ensuring that the systems are secure, can catch identity theft and wrong orders.  If this is the case, merchant should always have a reason to fight the chargeback and should do it either through the Payment service provider, gateway, 3rd party services like Midigator, Ethoca, etc, or fight it on your own.  If you don’t fight, you will lose a 100%.

AllRates is happy to work with any merchant in eliminating costly mistakes.  We will help finding the right Payment Provider, Gateway service or Chargeback company.  Check your current merchant credit card rates or Contact Us.