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Steps To Accept Credit Cards In Your Business
1. What Are You Selling? The reason for this is because VISA/MASTERCARD does not accept every type of business there is. Because of high return and charge back risks, each sponsored bank has a criteria of what kinds of business they will and will not accept. That is why when you check with your local bank there is a very good chance that your application will be denied if you are anything but retail. 2. What Is The Criteria For Acceptance? The less risk your business is to the bank, the greater your chance of acceptance. If you were operating a retail store selling stationary, your chances for approval is many times greater than if you were operating the same business from your home or over the Internet. To the bank the retail store is far more secure than your home based business. 3. What Do I Do Then To Accept Cards? I Am Not A Retail Store. The answer is that you need to work with a company or a bank that can approve these kinds of businesses. They have met the criteria and the requirements from VISA/MASTERCARD to approve businesses other than your standard walk in Retail store such as Mail Order, Phone Order, and Internet related businesses. 4. What About The Costs? Are They Any Different For A Retail Vs. Home Based Business. The answer to this goes back to the "Greater The Risk, The Higher The Cost." In almost every case the cost (discount rate) to process a transaction is going to be more to you than if it was done in person. Most home based businesses process sales over the phone, through the mail, and over the Internet. There is no signed sales receipt in all of these types of transactions. This invites the high possibility of chargebacks. Hence, more risk, higher cost than if it was retail. 5. What Kinds Of Typical Startup Costs Can I Expect? You should expect to invest a startup amount of between $190.00 - $300.00 from most companies in our industry. These amounts can include application, setup, equipment rental lease deposits as well as additional costs for poor credit, higher risk, etc. 6. What About Equipment. What Will It Cost? This is going to vary depending on the kind of equipment you choose. If you lease your equipment, your payments should range anywhere from $35.00 to $49.00 per month for a complete processing system including a terminal and an automatic printer, and in many cases software. If you are looking to process Online Internet Realtime transactions, and want to add on Shopping Carts, etc, amounts will increase according to the amount of customization you need. 7. Is It Really Necessary To Accept Credit Cards To Be Successful? Yes, it is. Here are just a few reasons why: The average cash sale amount is $9.00. The average credit card sale is $40.00. That is a 450% increase per transaction. Is it any wonder why you do not see VISA/MASTERCARD signs disappearing from store windows? This is no different in a home based, and more importantly an Online business. Another factor is this. Without giving your customers the convenience of accepting payment via credit cards, your sales are going to be far less than your competitors that do accept credit cards. This is a basic fact of business. Credit Card Processing: Can High Risk Businesses Get a Merchant Account?Is your business considered high risk? And can you still get a merchant account?In credit card processing, there are many different reasons why a business may be considered high risk. - First, it may be the actual business industry that has been tagged "high risk", such as travel, multi-level marketing (MLM), e-commerce, aggregators or collection agencies. - Second, the reason may simply be the business volume that places a business in the high risk category. - And third, it may be a reflection of the business or the business owner's credit history. The question still arises: Can High Risk Merchants Obtain a Merchant Account? The answer is YES. But you have to know where to go for the expert advice and guidance needed so you and your business are safe from excessive expenses often associated with high risk merchant accounts. Working with an expert in high risk merchant accounts is critical to the success of obtaining the best merchant account solution for your business. 5 Points to Consider When Selecting the Best Merchant Account for Your High Risk Business: - Your application needs to be handled by a high risk professional expert - Your high risk merchant account processor should have experience with merchants in your business industry - The high risk merchant account processor needs to have access to numerous credit sources - including more liberal banks and offshore options - If your business does have to be taken offshore, your high risk experts need to work on getting the lowest rate available - All rates should be disclosed prior to contract with the high risk credit card processing company 3 Insider Tips To Ensure Approval for a High Risk Business Merchant Account: - Do you have a poor credit rating? Be honest about disclosing any past financial challenges. Acknowledging previous liens, bankruptcies, judgments, etc. will only improve your credibility and alleviate one more barrier. - Be open to offshore options as sometimes they can offer your business the best merchant account solution. - Shop around for a credit card processor that has expert knowledge in high risk merchant account approval - and don't be afraid to ask questions. The more you educate yourself in the process, the more you will recognize a good high risk merchant account processor giving you intelligent, experienced answers to your questions. Operating a high-risk business does not exclude you from being able to process credit cards. Like any business, you want to provide your customers with as many non-cash payment options as possible. It is statistically proven that accepting credit cards help generate revenues and stimulate impulse purchases. Owning a high risk business doesn't mean you won't be able to open a merchant account. It does mean, however, that you may have to do a little more in setting one up that is right for your business. Do your "due diligence", shop around and ask questions to find a credit card processing company that specializes in high risk and offshore merchant accounts and will offer their expertise to businesses who fall into the high risk category. |
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