A high risk merchant account can seem like a death sentence to some businesses, but that doesn’t have to be the case. If you find out that you need a high risk merchant account to process credit card payments, then there are a few steps that you can take to limit the costs associated with being a higher risk customer.
Figure Out Why Your Business Is High Risk
The first thing that you will want to do is figure out why you are being considered a high risk merchant. There are a few different reasons why this might be, ranging from the industry that you’re in to a business-specific reason that you’ve been classified this way.
If your business is in an industry that is commonly classified as being high risk, then this is a trickier situation. You’ll need to speak with your California merchant services provider to see what, if any, changes you can make to eliminate that classification. It isn’t always certain that this will work, but it’s certainly worth a try.
A more common situation is that your business has been classified as high risk by merchant services because of something that has happened in the past. This could be because of higher than normal chargebacks, or could be due to a wide variety of other situations. If this is the case, then you will need to be extremely careful about how you accept credit cards in the future, but over time, you should be able to make a case for your business to be removed from the high risk classification.
Determine other ways that you can lower your overall cost of doing business
No matter what the reason for your initial high risk classification, you should immediately begin considering ways that you can lower your cost of doing business, to limit the impact of slightly higher credit card processing fees.
One thing that you can do is to upgrade your POS system to streamline your business, and hopefully provide a better customer experience. Streamlining your business will lower costs, which can help offset the cost of being a ‘high risk’ business. Providing a better customer experience can help reduce chargebacks as well, because customers are more likely to work with you if they have a good experience at your business.
Leaders Merchant Services is here to help your business succeed. We work with all types of businesses, both regular and high risk, to help them process credit card transactions quickly and easily. If you would like to learn more about our service, then get in touch with us today regarding signing up for a merchant account.