With the right strategy and the best payment processors, you can continue to stay in business by processing payments for high-risk merchants. Here are several steps you should take to help your company stay afloat despite these difficulties:
With so many businesses experiencing cash flow problems and a recession looming, it’s no surprise that more risk-averse companies are adding another factor when considering whether or not to process payments for new merchants.
Whether it is because of their location, industry, or some other factor, there are plenty of businesses operating today that fall under the category of “high-risk.” These businesses usually have a much higher rate of chargebacks and complaints from their customers than others. Any business might be considered high risk for one reason or another – especially during this economic crisis.
Payment Cloud : Best overall (Best Payment Processors)
Launched in 2000, PaymentCloud’s mission is to help businesses of all sizes grow and thrive by providing flexible, affordable payment processing and software for small and mid-sized businesses. They offer credit card processing, check conversion and ACH payment services.
PaymentCloud stands out from the crowd of payment processors by offering superior customer service and a wide range of payment product options for small businesses trying to stay afloat during a period of high risk. In fact, PaymentCloud specializes in helping companies that fall into the high-risk categories process payments.
PaymentCloud has long been a leader in providing payment processing solutions for companies that fall under the high-risk category, whether they have been in business for five years or 50. PaymentCloud has implemented a wide range of safety measures to help protect your customers and your business.
They are PCI compliant and have a variety of fraud protection tools in place to reduce the risk of chargebacks. PaymentCloud also has a dedicated team to help merchants work through any issues that arise. With a variety of pricing options and flexible features, PaymentCloud offers a payment processing solution for every small business.
Easy Pay Direct : Best for shopping cart integrations
When you need a reliable payment processor that will help you optimize your current checkout process, it’s a great idea to choose a company that specializes in eCommerce solutions. Easy Pay Direct is a PCI compliant payment processor that specializes in eCommerce solutions for high-risk merchants.
They offer a variety of payment options including credit card, ACH, cash and gift card payments. Easy Pay Direct also offers shopping cart integrations that make it easy to accept payments from your website. They also provide free fraud detection tools to help you minimize chargebacks.
To help you stay compliant, Easy Pay Direct also offers an easy-to-use onboarding process and regular auditing to help you remain compliant with all regulations. They also offer 24/7 customer support should you need assistance with your account or any other issue that might come up.
E-Merchant Broker : Best for fast approval
If you have been in business for a while but have recently fallen into the high-risk category, you might have a tough time securing a new payment processor. Unfortunately, many payment processors only consider new businesses when deciding which companies they want to do business with and which they do not.
If this sounds familiar, consider EMerchantBroker. They specialize in working with established businesses that have fallen into the high-risk category. EMerchantBroker has been helping these businesses for years and has a long history of providing excellent customer service and innovative payment processing solutions.
If you need a fast approval, EMerchantBroker has a streamlined application process that gets results in just a few short days. They also have a long history of working with high-risk businesses and a proven track record of helping them stay compliant with banking regulations.
National Processing : Best Payment Processors
If you accept cash payments from your customers, National Processing is a great option. They offer a wide variety of payment processing solutions and specialize in helping high-risk businesses remain compliant and in business.
With a long history of helping high-risk businesses, National Processing has all the tools and expertise you need to process payments from your customers. They offer credit card, check and ACH payment processing solutions. If you prefer cash discounts, they also offer a cash discount payment processing solution. They offer a wide range of pricing plans to fit the needs of every business.
Payline Data: Best for membership-style pricing
If you have a subscription-based business, consider Payline Data. They offer membership-style pricing and specialize in helping subscription-based businesses stay compliant and thrive despite being considered high risk.
Payline Data offers a wide variety of payment processing solutions including credit card, ACH, cash and gift card payments. They also offer a wide range of pricing plans to fit the needs of every business.
Soar Payments: Best Payment Processors
If you are in an industry that is hard to place into a specific risk category, you might have a hard time finding a payment processor. For example, if you provide cleaning or other services, you might have a tough time deciding which risk category best describes your business.
Soar Payments offers a wide range of payment processing solutions including credit card, ACH, gift card and cash payments. They also offer a wide variety of pricing plans to fit the needs of every business. That concludes our list of payment processors that are best suited to high-risk merchants.
Whether you are trying to accept online payments or stay compliant with a cash discount, these companies can help you keep your business afloat.
Bypass the Problem
If you operate a business that is considered high risk by one or more payment processors, there are a few things you can do to bypass the problem.
- Partner with a company that specializes in high-risk businesses, such as a cash advance company.
- Negotiate a different contract with your payment processor so that they don’t consider you high risk.
- Use a payment service that doesn’t take into account risk at all, such as cash or checks.
Request Advance Funds
If you can’t change the fact that you’re considered high risk and you can’t find a payment processor that doesn’t take into account risk, your best option may be to request advance funds from your clients. This is when the customer pays you a large portion of the total cost up front.
They may do this because they know that their own funds are tied up in another transaction or because they just don’t have any funds available to make the payment. When you receive this type of payment from a customer, it’s up to you to make sure it gets to the proper processor by the due date.
If the customer doesn’t have the money to pay you back or you can’t get the funds to the processor in time, you may be out of business. If a customer can pay you in advance, but chooses not to, you can probably expect to have more chargebacks.
Utilize Protection Services
Many payment processors offer what are called “protection services.” These are often used in conjunction with high-risk businesses, but not always.
Some examples of protection services include :
Chargeback management – This service helps you minimize the number of chargebacks you receive by working with your customers.
- Fraud management – This helps you reduce the amount of fraud taking place within your company.
- Overdue management – This service ensures that you receive payments from your customers on time.
- Payment maximization – This helps you maximize the amount of payments you receive from each customer.
- Dispute management – This helps you minimize the number of complaints about your business.
- Collections management – This service helps you collect on any overdue payments from your customers.
Use Technology to Help Solve the Problem
If you can’t bypass the problem, change your business practices, or request advance funds from your customers, you can still accept payments from high-risk customers. However, you need to use technology to help you stay afloat.
- Implement a fraud detection system to help you identify potential fraud and stop it before it occurs.
- Use real-time payment processing to get funds from your customers as soon as they make the payment.
- Use a customer feedback system to help you identify problems before they cause a chargeback.
- Use a customer communication system that helps you send your customers the information they need to make a payment or resolve a dispute.
Make Changes to Your Business Practices
If you’ve tried to bypass the problem and change your company to be less high risk, but you still can’t find a payment processor that will work with you or you can’t get your clients to pay you in advance, you may need to make other changes to your business practices.
Limit the number of customers you take on. If you accept every customer that applies, you may be taking on too many of them. This can create a situation in which you can’t keep up with your payments to the processors and your customers.
Limit the type of customers you work with. By limiting the type of customers you work with, you may not be able to make as much money, but it will be easier to keep your business afloat. Which customers you should avoid entirely is a tough question because every business is different.
Bottom Line – Best Payment Processors
If you operate a business that is considered high risk by one or more payment processors, there are a few things you can do to bypass the problem and help your company stay afloat despite these difficulties. You can:
- Bypass the problem by partnering with a company that specializes in high-risk businesses, negotiating a different contract with your payment processor, or using a payment service that doesn’t take into account risk at all.
- Request advance funds from your customers if you can’t change the fact that you’re considered high risk and you can’t find a payment processor that doesn’t take into account risk.
- Make changes to your business practices to limit the number of customers you take on and the type of customers you work with.
- Use technology to help solve the problem by implementing a fraud detection system, using real-time payment processing, and using a customer feedback system.