What is High-Risk Payment Processing? How is the Industry Changing and Tips Retailers Need to Know
Understanding What Qualifies as High-Risk Payment Processing
Certain types of businesses are statistically more likely to experience chargebacks, fraud, and other events that increase the financial risk of providing payment processing solutions. The industry labels these businesses “high-risk merchants.”
As you can imagine, processing payments in certain industries is fraught with security challenges. However, if merchants employ certain robust security measures, they can mitigate these risks and safeguard their financial data.
Some merchants in riskier industries experience higher-than-average chargeback rates. This could be due to customer dissatisfaction, criminal fraud, or because the regulations governing these businesses are so complex and convoluted that well-meaning people who are not experts in legal intricacies simply conduct part of the transaction incorrectly.
Some sectors have very strict regulations. Online gambling and pharmaceuticals are two examples. Companies in these sectors must plan to comply with large regulatory obligations as a cost of doing business and plan accordingly.
Finally, some businesses are deemed risky due to free market reasons like financial instability. Tech startups are a great example. Subscription-based services are becoming incredibly popular for everything from movies to meals. However, these businesses are riskier than other businesses for traditional payment processors.
Some specific examples of high-risk industries include but are not limited to firearm and ticket sales, technical support services, travel agencies, debt consolidation services, tobacco and vape sales, and anything involving CBD.
Recent Changes in High-Risk Payment Processing
Business owners need to pay attention to recent changes in the world of high-risk payment processing. Staying current with global standards can be a strategic way to build trust and credibility while making business operations more secure.
Biometric authentication is one exciting technology that is gaining traction in high-risk transactions. Enhanced security measures that make sure only certain people can access certain data help high-risk merchants reduce their risk.
Fraudulent transactions typically look different than normal transactions. Machine learning is revolutionizing how these transactions are detected, reducing the time needed to spot them from weeks to fractions of a second. This technology could save businesses and consumers millions of dollars.
The E-commerce boom is causing a surge in online transactions. This brings unprecedented opportunities and challenges for e-commerce platforms. Navigating the intricacies of high-risk transactions in the e-commerce space requires tailored solutions and proactive security strategies.
Customers can and should be a powerful first line of defense when combating payment fraud and cybercriminals. Consumers who are empowered with knowledge on how to avoid being scammed can help protect your business as well.
The regulatory landscape for high-risk merchants can be complicated. Numerous rules and guidelines already exist. Knowing what these rules are and what actions merchants must take can mean the difference between keeping your customers safe and getting fined by a regulatory agency.
Learning the ins and outs of high-risk payment processing could consume a small business owner’s day. The sheer amount of data on the subject makes it impractical to do everything yourself. It is much better to work with a partner who lives and breathes the payment processing world.
Streamline Operations With Dependable High-Risk Payment Processing
No matter what high-risk industry you are in, The General Store can help. When you call us with a problem, we will never punt to your processor. We pride ourselves on being the only place you need to call if something goes wrong.
As a high-risk merchant, you have certain non-negotiables in the partner you trust to handle your high-risk payment processing. Water-tight security, no-limit processing, and proven track record. We offer exactly what you need so that you can focus on your business:
Advanced security measures
Our state-of-the-art security features protect you against fraud and chargebacks. Your business and customer transactions will be safe. You will enjoy higher chargeback limits, recognizing the increased chance of chargebacks. We know the popular scams and proactively protect your business from them.
Unlimited payment processing
We offer unlimited processing with no limits or hold options. Our services are transparent, which means you will be able to make informed decisions with clear terms. We ensure you understand all fees, chargeback limits, and financial details. Our solutions are crafted to streamline payments with no hidden fees or long-term contracts.
Over four and a half decades of industry experience
We have developed trusted working relationships during this time. That means we can use our banking partnerships to secure a long-lasting merchant account on your behalf. We developed a quick approval process that will expedite your merchant account setup and allow you to start earning money faster.
You Don’t Have To Do High-Risk Payment Processing Alone
The high-risk payment processing industry changes every day. New technologies, novel scams and frauds, and constantly changing rules and regulations make navigating this industry like piloting a pontoon boat down white-water rapids.
Finding a dependable processor to partner with is critical. And not just any partner. You need one that already understands your industry and knows the particular challenges you face.
If you are looking for a partner with the experience and expertise to help your business through your unique situation, contact us.
