High risk payment processors provide a variety of benefits to businesses. These include Chargeback fees, recurring billing, and Mobile checkout. They also provide additional services such as customer care and security measures. For more information, read our article on the benefits of high-risk payment processors. In this article, we’ll discuss the reasons businesses should use these services.
Benefits of high-risk payment processors
Using high-risk payment processors to process payments can help a business grow and sell products and services across the globe. They help to secure customer information and financial data, which makes them a great asset to businesses. They also offer multiple payment options, including payment with cryptocurrencies or e-wallets. This allows businesses to increase their reach without incurring high processing costs.
High-risk payment processors are essential for businesses in industries with high chargeback rates. The companies providing such services are typically more flexible with their acceptance rates, and they often understand the unique needs of high-risk businesses.
Chargeback fees
High-risk payment processors will assess higher fees for chargebacks. They will also require a merchant account reserve to cover the risk of chargebacks. This account is typically a non-interest-bearing savings account set up by the acquiring bank for this purpose. The merchant cannot access the money in this account until 180 days after the initial transaction.
When a chargeback occurs, a merchant’s acquiring bank will try to recover the processing fees. These fees usually range from $20 to $50. However, high-risk businesses may pay even more. In addition, the business will be required to absorb other operational costs, including shipping, employee labor, and fraud prevention software.
Recurring billing
Recurring billing is a great benefit for high-risk merchants. It gives them predictable revenue streams and expands the lifetime value of their customers. It also provides convenience for both high-risk merchants and consumers. The payment option is available to merchants who accept credit or debit cards and online sellers who accept payment with e-checks and recurring billing plans.
The consumer will be notified before payment is deducted. Many high-risk merchants send monthly billing notifications, including email confirmations, to their customers. Other merchants will send emails with cancellation information. Regardless of how the recurring billing method is set up, it is important to provide consumers with an easy and convenient way to cancel it. This will reduce customer frustration and chargebacks and will increase customer satisfaction.
Mobile-compatible checkout
To provide your customers with a secure mobile checkout option, you must ensure that your high-risk payment processor supports mobile devices. Some processors may require you to provide a tax ID number, a business license, or an employer identification number to open an account. You should also check that your mobile processor complies with the PCI Data Security Standard and card network rules. Some mobile payment processors are designed for individual use and do not support e-commerce.