Why Do Financial Institutions Consider Web Service Companies to Be High Risk?If you have ever undergone a lengthy and yet unsuccessful underwriting process with an acquiring bank, you may have found it difficult to understand why your application was declined. Since the web service industry is stable and the demand is high, it is easy to believe that there are no significant risks in the business. Below are the major reasons why your business is deemed to be high risk. Know more about Merchant Accounts for Website Design & Development.
Big Ticket SalesWeb design and development services do not come cheap. The business requires clients to make huge payments to service providers. Major web service transactions are worth thousands of dollars. High fees like this make chargebacks very detrimental. Since there is no way to completely prevent chargebacks in online transactions, acquiring banks will be unwilling to underwrite such a business. In contrast, acquiring banks will be more willing to work with retail stores since the price of their average transaction is low.
The Difference between Transaction and Service Delivery TimesAnother reason why payment processors are wary of web service companies is the time difference between billing and service delivery. Clients are usually required to make a payment before the job is completed. They either have to make a payment upfront or pay ongoing sums. Such transactions leave the door open for disputes as clients can easily claim to be unsatisfied with the service they received. Most times, this results in costly chargebacks.
5 Star Processing Is the One-Stop Solution to Your Payment Processing NeedsIf you are in search of a premium website design merchant account, then you should look no further than 5 Star Processing. Our underwriting process is short and convenient. Once you submit all relevant documents to us, your merchant account will be ready for use in less than a week. As our client, you will enjoy live support from our customer service throughout the life of your account. We will also put in maximum effort to help your company combat chargebacks. Contact us to get a Merchant Accounts for Website Design & Development.