Debunking 8 Common Myths About High-Risk Merchant Accountsby Confidential Banking #1 Merchant Processing Services
With 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.
Created on Oct 6th 2020 09:41. Viewed 161 times.