If you’re running a high-risk company, you’re likely exposed to more chargebacks than the average American business.A high chargeback ratio can result in having one’s merchant account shut down, funds temporarily frozen, and even lead to a fine and higher payment processing fees. If you get a high-risk merchant account, your business will be in a much better position to handle these issues, as a high-risk merchant account will not be shut down or become more expensive when you start getting chargebacks. However, if you want to avoid chargebacks altogether, you can opt for a high-risk payment gateway in the USA that will provide you with a workaround. Read about high-risk Chargeback Payment Gateway
What can a US High-Risk Payment Gateway do for you?
First things first: as long as your business is processing credit card payments, there is no way to completely secure yourself against chargebacks.
They happen, and often it’s not your business’s fault nor is it fraud committed by a third party. Most likely it’s the consumer claiming that a transaction was fraudulent in a bid to get their money back for their own selfish reasons.
Having said that, with a high-risk payment gateway, you can choose to process payments through direct bank-to-bank transfers. The results from this are the same as if you were issuing a wire transfer to another person’s account – it’s completely secure, and you have no way to recall it (i.e. no possibility of chargeback).
In practice, the setup makes it easy to issue the transfer. The customer still has to go through the steps of authorizing it through their internet banking service, but they don’t have to go in and start a whole new transfer by themselves. This ensures a more smooth shopping experience that is more likely to lead to a conversion.
Of course, it’s not as quick and easy as filling out credit card details in a form (especially when the customer’s browser fills out that information for them), and depending on your exact industry, this type of payment processing can result in lower conversions than what you are used to.
Another drawback is that it can take 1-2 business days for the funds to be transferred.
The upside is that chargebacks are 100% eliminated, and the risk of fraud is extremely low.
It even removes the risk of so-called “friendly fraud” where someone you know uses their easy access to your phone or credit card to make an online purchase. It’s far more difficult for someone to authenticate an unauthorized bank transfer.
This protects both you and your customers. In addition, your customers are not required to share any sensitive data with you or anyone else, like they have to when paying with a credit card. Depending on your market this can be a big selling point to add to your promotions.
And finally, with a high-risk payment gateway of this kind, there is virtually no limit on transaction size or volume.
If you’re running a business that deals with very high-end products or services, your customers won’t experience any issues when trying to pay for them with a credit card that has a spending limit. Similarly, you won’t have to deal with any volume limits or extra fees for a high amount of transactions.
Call us for more information on a high-risk payment gateway for USA businesses.
Our high-risk experts are ready to answer all of your questions, and if you’re ready, help you start an application.
Call us toll-free today at (888) 253 9692 – or send an email to: [email protected]