High Risk Payment Processing ACH Check & Credit Cards

Every business, especially in its initial stages, faces its share of challenges that may continue even after it is well established. The one thing that can help a business to increase its sales is the ease with which its customers can conduct transactions. Having a complicated or tedious payment processing procedure will certainly affect a business negatively. Any business that offers its customers the option to use payment options such as debit cards or credit cards has a valuable advantage. Hence having a merchant account or ach echeck with the correct service provider is essential. There are some businesses that are considered high-risk and have to face a tough time while getting a merchant account. We take a closer look at one such business, which is related to the extended warranties industry. There are various companies, which offer home warranties, auto warranties or even warranties for electronics, appliances etc.

Extended Warranty Industry Processor Solutions

The extended warranty industry is considered to be high-risk industry due to its high chance of loss exposure. They also have a high chargeback ratio in terms of the comparison between high-risk vs. low-risk ventures. When a customer buys an extended warranty using the credit card, there is a time period of 6 months for the customer to dispute it. If the customer is unsatisfied with the warranty, they will request for a chargeback. If the business does have the required funds to refund the amount, the credit card processor and the sponsor bank would have to pay it. If there were many such chargeback requests, there would be a considerable financial risk on the credit card processor. This is the prime reason why many extended warranty companies are denied merchant accounts.

Why Choose a High-Risk Credit Card Processor Like Clarity?

Many times low-risk credit card processors do not want to be involved with high-risk businesses. They are best suited to handle specific merchants most of whom are low-risk. These processors may not have the correct procedures regarding risk management for high-risk companies, which could reduce the risk of loss. It is possible that these low-risk credit card processors may not give you a valid reason to not approve your business. They might even approve your business and then discontinue doing business in a few weeks. There are many advantages to choosing a high-risk credit card processor. Some of them are:

  • Most of them understand the challenges of working with a high-risk vs. low-risk business and are willing to do so.
  • They would work with you even if you are a startup and you have no history of credit card processing.
  • They are equipped to handle business with a bad credit history.

Here are some tips that can help you increase your eligibility for opening a merchant account, Be honest: The first step would be to acknowledge and accept any financial challenges that your business may have faced in the past. Many businesses have gone through bankruptcies and acceptance would help you overcome any such situation. Hiding information is incorrect and it will affect your prospects of having a merchant account set up.

A Positive Credit Card Rating Helps But Isnt a Deal Breaker

It is recommended to clear any bankruptcies or liens before applying for a merchant account. A good credit card rating will help to make a great impression on the card processor. It will also aid in getting a favorable response from them. Be prepared to pay more: There is a high possibility that you might have to adhere to certain restrictions or pay slightly higher fees to open your merchant account. Having a merchant account will provide a great deal of convenience to your customers. It would be a small price to pay for satisfied customers and the higher sales that would be generated eventually.

Solutions We Offer Your New or Established Business

We value each of our customers and welcome every type of business. We can provide credit card, debit card, ACH, E-Echeck, Check By Phone and Check21 drafting options. We have a trustworthy and reliable relationship with all our valued customers and we are always striving to maintain that. Whether your business has a domestic set up or offshore operations, we guarantee the most affordable personalized solutions for you. We have partnerships with different processors as well as banks both domestic and overseas to take care of your merchant account needs. Our application process is simple and our approvals are easy and hassle-free. There is no application fee and no setup fees and we can have your free merchant account set up quickly. Whether it is setting up your virtual terminal or the gateway setup, our customer service team can address all your business needs. We are efficient, friendly and are available 24/7 for any technical support you may require. Many high-risk businesses are declined merchant accounts if they have a low credit score. We offer you comprehensive and customized solutions at the best rates that can help bring your business back on the path to success. The process to open a merchant account for a high-risk business is always considered to be a long and complicated one. We aim to change that and make the process smooth by providing you the best solutions. Get in touch with us today and experience our services for all your business needs.