Debunking 8 Common Myths About High-Risk Merchant Accounts
by Confidential Banking #1 Merchant Processing ServicesWith most consumers
turning to credit cards for all types of purchases today, it’s a wonder not
every business accepts credit cards as a mode of payment.
Opening a high-risk merchant
account
can yield big profits for even small businesses that operate in the “high-risk”
industry. Today’s high-risk merchant accounts are less expensive and simpler to
establish than ever before. Yet, many business owners have misconceptions about
them that may be keeping them from opening an account and enjoying all the
benefits high-risk credit card processing can offer.
Consider the following
myths — and the corresponding facts — if you are hesitant about opening a
merchant account for your high-risk business:
Myth #1. High-risk merchant
account applications are complicated and difficult to fill out.
While the accounts of a
decade ago may have required substantial documentation and a protracted
application process, today’s accounts involve a simple online application
process that takes only moments to complete.
Myth #2: High-risk merchant
accounts have exorbitant fees and costs.
Thanks to the increasing
number of account providers offering services today, many merchant account
providers have decreased or eliminated fees and costs once associated with
opening and operating an account.
Myth #3: High-risk merchant
accounts have costly hidden fees.
By law, all merchant
account providers must provide their customers with a complete list of all fees
and costs associated with them. Some account providers can make it more
difficult to locate fees; like any business agreement, take your time and read
the contract thoroughly, and ask questions about any fees or terms that are
unfamiliar. Also, steer clear of providers with artificially low rates or
companies that make it difficult to determine all the fees and costs associated
with their accounts. Reputable providers will make sure you understand all the
costs associated with your account.
Myth #4: High-risk merchant
accounts are only for specific types of businesses.
Today’s merchant
account providers have a broader range of services and products than ever before,
and can create a program of services and features that are right for your
business. They can also accommodate new and growing businesses, ensuring your
company can continue to thrive and evolve for years to come. So, whether you
are looking for a pharmacy merchant
account
or an account for your casino site, there are accounts explicitly designed to
meet the unique needs of your business.
Myth #5: High-risk
merchant accounts are too expensive for small businesses and businesses that
are just starting out.
Many account costs are
based on the amount of business you do, meaning your costs will remain lower
while your business is just starting out.
Myth #6: Fewer consumers are using credit cards today, so the
advantages of a high-risk merchant account are limited.
Consumer spending
studies show more and more consumers are turning to credit cards for even small
purchases, thanks in part to incentive programs that can actually “pay”
cardholders for using their credit cards. As a result, card usage is up,
meaning your business stands to profit more than ever by accepting credit
cards. Studies also show that consumers who use cards tend to spend more money
and shop more often than those who pay cash.
Myth #7: The account approval
process can take months to complete.
Depending upon the
merchant account services provider, the type of business you operate, your
business financials, and the type of account you’re opening, account approval
usually takes anywhere from 48 hours to two weeks in most cases, meaning your
business can be accepting credit cards and competing with the “big boys” in no
time at all.
Myth #8: Merchant accounts only
care about “big” clients.
Most accounts today are
being opened by small businesses just like yours. As a result, today’s
high-risk merchant account service providers have become more interested in the
needs of small businesses and have established a wide range of products and
services to suit their unique needs. When selecting an account provider, be
sure to ask about their experience in helping small businesses or new
businesses grow and expand.
Accepting credit cards
is a great way to keep your high-risk business competitive and grow your
customer base and bottom line. By understanding a few of the misconceptions
about today’s high-risk merchant accounts, you can take the next step in making
your business more profitable and attractive to consumers.
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Created on Oct 6th 2020 09:41. Viewed 340 times.