Common Myths and Misconceptions About High-Risk Payment Processing

This blog will debunk myths and provide truths about handling high-risk transactions so you can confidently work with reliable payment processors.

Key Takeaways

• High-risk payment processors are safe and reliable, offering advanced fraud protection to help businesses handle risky transactions securely.
• Finding affordable high-risk payment processing options is possible by shopping around and negotiating fees, helping businesses fit these vital services into their budget.
• Approval for high-risk merchant accounts isn’t limited to a few business types; various industries can get approved by meeting specific criteria and managing risks effectively.
• Customer support is a priority for high-risk processors, with dedicated teams available 24/7 to assist with any payment issues or questions.
• Integrating high-risk payment solutions with existing business systems can be smooth and straightforward, enhancing transaction efficiency without compromising security.

What is High-Risk Payment Processing?

High-risk payment processing offers a lifeline for high risk businesses as they often face higher chances of chargebacks or operate in industries considered new or unique. High-risk processing companies like Vellis offering high-risk merchant accounts and secure payment solutions understand these challenges.

Securing a high-risk merchant account involves showing you’re ready to meet these stringent requirements. You’ll need things like your bank details, employer identification number (EIN), government licenses, proof of PCI compliance, and financial statements ready for review.

High-risk businesses often find it tough to get a payment gateway for high-risk businesses. They are often met with higher fees and have trouble getting loans or merchant accounts — all because they have higher chargebacks and must follow strict rules and laws.

Despite the hurdles, businesses in high-risk sectors can still thrive by working with high-risk payment processing processors that help ensure safe and secure transactions. Even if you’re in a risky business, you can find ways to succeed with the right online payment processing USA support.

Myth 1: High-Risk Payment Processors Are Unreliable

Some people think using high-risk payment processors is a bad idea because they worry that their services are not safe nor good for the company.

The reality? Reliable payment processors are available — you just need to find them.

These reliable payment processors offer advanced fraud protection among other features to ensure safety and trustworthiness. With such measures in place, high-risk payment gateway solutions become an essential asset for businesses in risky verticals needing to accept card payments securely and efficiently.

High-risk payment processors like Vellis take reliability seriously. We protect merchants with advanced fraud protection tools to watch out for suspicious activities and stop fraud before it happens.

We also help businesses by accepting various vpayment methods. This includes credit card, ACH, eCheck, and even crypto payments. Vellis also employ efficient chargeback management strategies so businesses can cut back on their losses.

Together, these measures show how merchant services for high-risk industries are keeping businesses safe and running smoothly.

Myth 2: High Fees Make High-Risk Payment Processing Unsustainable

Many people think high fees make dealing with high-risk payment processors too costly. In reality, cost-effective solutions exist.

High-risk payment processing might sound expensive, but finding affordable options is possible. Different processors have various fee structures that businesses can compare to find the best rates that work for their budget.

Businesses should look for processors who offer a mix of low fees and valuable services. These steps ensure high-risk merchants don’t just pay less but also get more security and reliability from their payment processing.

To find affordable options, negotiate fees with your processor. Look at the value services add to your business, not just the price. Some companies offer special features that can save money in other ways, even if their fees seem high at first glance.

Tips on Negotiating Fees

Knowing about different fee structures helps you find what works best for your high-risk business. To make sure you’re getting a good deal, talk about your needs and how each service can meet them at a fair price. Ask questions about anything that seems unclear and try to work out better terms if possible.

Payment processors often have some wiggle room, so discussing openly could lead to savings for your business.

Myth 3: Only Certain Businesses Can Get Approved

Many types of businesses can get high-risk payment processing, not just a few. Despite common worries, many high-risk businesses can indeed get approved for payment processing. The key lies in understanding what factors come into play—like your monthly sales volume, the size of your average credit card transactions, and how many different currencies you accept.

High-risk payment processing companies charge higher-than-average fees but getting approval is definitely within reach if you know how to position your business.

High-risk businesses can improve their chances by showing solid numbers and a clear plan for managing risks. It’s not just about what you sell or where you are; it’s also how well you manage what makes you high risk.

The Approval Process for High-risk Merchant Accounts

Businesses go through a detailed review to get a high-risk merchant account. High-risk payment processors check monthly sales, how big credit card transactions are, if you accept different currencies and if there are recurring payments. They also see if the business is on the MATCH list, what products they offer, and where they are located.

If marked as high-risk, choices in processors become few and fees go up to balance out the risk. This label means there might be more disputes or issues with transactions.

To boost your chances of getting approved, make sure you have all the right paperwork ready. This includes bank info, EIN (Employer Identification Number), any government licenses you need, proof that you meet PCI compliance standards (this has to do with credit card security), and financial statements.

Being clear and honest about your business can also help reduce the risk of any problems later on. Using these strategies can improve your odds of getting the green light from processors like Vellis.

Myth 4: Customer Support Is Not a Priority

Some people think high-risk payment processors don’t care much about helping their customers. But, good news – many have teams ready to help anytime you need it.

High-risk payment processors like Vellis have dedicated support teams that provide help 24/7. These experts know all about high-risk industries and can solve problems fast, plus give tips on how to improve your business’s payment process.

Top-notch customer service plays a key role in ensuring transactions run smoothly for both merchants and their customers. Access to 24/7 support means issues get fixed fast, keeping everything moving and reducing any bad effects on business operations.

For instance, high-risk companies that provide solid advice and quick solutions around the clock get better ratings from customers and recognition from reviewers.

This ensures not just customer satisfaction but also trust, making them feel secure in their transactions—a must-have for maintaining a steady flow in a challenging environment.

Myth 5: Integration with Existing Systems Is Difficult

Many think it’s tough to mix new payment systems with old ones. The truth is, modern solutions make combining them smooth and easy. Modern payment processors offer tools that fit right into your existing setup, like a perfect puzzle piece. You don’t have to change how you do things to keep your business running smoothly.

High-risk payment processing processors understand every business is different. They provide flexible customized solutions that match exactly what you need, keeping your business ahead and always ready to meet your customer’s needs quickly and efficiently.

Using a payment processor that supports seamless integration helps businesses connect easily with their existing systems. This means you can start processing payments faster and more securely without any hiccups.

These systems make it easier for businesses to manage their day-to-day tasks. They fit right into the current tech setup, turning complex data into simple reports. This way, companies can see how they’re doing and find ways to do better.

Plus, having everything connected means less time spent on troubleshooting tech problems. This saves money in the long run and makes sure sensitive information is always protected.

Myth 6: Security Is Compromised with High-Risk Processors

Some think that using high-risk processors means less security, but the truth is they ensure secure payment solutions by following high security standards and keeping up with industry regulations.

High-risk payment processors follow strict security measures. They make sure to meet PCI compliance standards and other important security certifications crucial to reducing fraud and chargebacks.

Moreover, these processors use advanced technology to keep payments secure. They watch every transaction closely to catch any signs of fraud early on which helps protect high-risk businesses. Tokenization and encryption are also employed to further safeguard data, alongside multi-factor authentication to avoid fake identities.

Conclusion

Some people think high-risk payment processors are not reliable, but trustworthy options with advanced fraud protection exist. Others say the fees are too high, yet affordable solutions and ways to negotiate lower costs are out there.

It’s also a misconception that only certain types of businesses can get approved for these services. In reality, many high-risk businesses can secure approval by understanding what factors influence decisions. Reliable payment processors also offer strong, 24/7 support teams.

There’s also concern about integration issues and compromised security; however, seamless integration with business systems is possible, and high-security standards including PCI compliance are maintained.

Being labeled “high-risk” doesn’t mean untrustworthy—it signals a higher chance of disputes or operating in new industries that involve more telephone or mail transactions. High-risk labels help merchant services identify businesses facing greater chargeback risks but don’t close doors to opportunities for processing payments securely and efficiently.

For personalized payment processing solutions, reach out to Vellis today and experience the best payment gateway for high-risk businesses!

FAQs

1. What are some common myths about high-risk payment processing?

Some people believe that high-risk payment processing is only for businesses with a bad reputation, but this isn’t true. Any business operating in an industry considered “high risk” by banks can benefit from these services.

2. Are all high-risk payment processors the same?

No. Each processor has its own set of standards and procedures for handling transactions, as well as different fees and contract terms. It’s essential to do your research before choosing one.

3. Do I need a special type of bank account if my business is classified as ‘high risk’?

Yes. You’ll need what’s known as a ‘merchant account’. This allows you to accept credit card payments securely despite being labeled ‘high risk’. Remember though, not all banks offer these accounts so shopping around may be necessary.

References

Lbmc, Lbmc. 6 Myths about PCI compliance Regulations. LBMC. https://www.lbmc.com/blog/6-myths-about-pci-compliance-regulations/. Published May 20, 2024.

Miranda D. Best High-Risk Merchant Account Service Providers of 2024. Forbes Advisor. https://www.forbes.com/advisor/business/best-high-risk-merchant-account-providers/. Published March 20, 2024.

Pan F. High-Risk Payment Processing: Myths vs. Reality | Medium. Medium. https://medium.com/@edenemaa/high-risk-payment-processing-myths-vs-reality-1d1ec6e1f646. Published May 27, 2024.