Are you running a high-risk business? If yes, you should face many challenges while obtaining a high-risk gateway and a high-risk merchant account.
Accepting online payment nowadays is essential for any online business (either high-risk or low-risk). But to do the same, merchants need a reliable and secure payment gateway. However, having the best payment gateway or a trustworthy payment service provider is hassle work, especially if you have high-risk businesses.
Here, in this blog, we will discuss in detail the High-risk gateway challenges and the best solutions for these challenges. This blog will help you find a trustworthy high-risk payment gateway for your high-risk business. So, let's start.
A payment gateway is a mechanism, or a middleman, between the merchant websites and the customer issuing bank. The primary work of the gateway is to read and transfer payment information securely from the customers to the merchant's bank account.
A high-risk gateway is a specialized payment gateway that deals with high-risk businesses. The high-risk gateway access various risk involved in working with high-risk businesses. The risk assessment with high-risk businesses includes checking the business's line of business, credit card processing history, chargeback history, etc.
For high-risk gateway, two different types of merchant services are available -
- Low-risk merchant account
- High-risk merchant account
Which type of merchant account you need depends on your business risk level. Generally, a low-risk merchant account will be cheaper and have many limitations compared to a high-risk merchant account.
What Are The Challenges High-risk Merchants Have to Face?
Having a high-risk gateway for your high-risk businesses takes a lot of work. You must face many challenges to run your high-risk companies as a merchant. Let's check the top major problems high-risk merchants have to deal with -
As you run a high-risk business, you must face many challenges while obtaining a high-risk merchant because most banks and payment service providers deny working with high-risk businesses. So, in this condition, merchants have to look for a specialized and experienced merchant account service provider.
Moreover, the merchant should follow the service provider's rules; if you break the law, your account will get blocked. As a result, you have to lose sales.
For example – If you are running a forex business, you must seek a specialized service provider to obtain the forex merchant account.
High Processing Fees -
Payment providers charge higher fees for high-risk processing businesses, and you cannot ignore it. It is because of the risk they are involved in and to make up for it.
Payment gateways have historically charged higher processing fees to high-risk merchants than low-risk merchants. Payment gateways impose steep costs on high-risk businesses to compensate for the risk involved in doing business with them since they are viewed as susceptible.
Maintaining a Rolling Reverse -
As a high-risk merchant, you need to maintain a rolling reverse. Here, high-risk merchants have to keep a certain percentage (up to 20%, but usually less) of their transaction volumes on hold for some certain period. This period is usually 120 days.
As a merchant, you need to understand that rolling reserve is not a fee or something negative. Service providers keep it for security reasons. In case something goes wrong with the enterprises, acquiring banks has a way of securing their losses.
Higher chargeback fees -
Almost every high-risk business has a higher chargeback rate than the other companies. Moreover, most of the service providers set monthly thresholds.
Businesses must pay chargeback costs to their payment processor whenever they have to handle refunds. These fees could be more expensive for companies with high chargeback ratios to cover the potential hazards of high chargeback rates. These may be charged anywhere from $20 to $100 per unit.
It is therefore advised that companies look into chargeback protection technologies and techniques to avoid paying huge chargeback costs and damaging their reputation. Today, most service providers offer chargeback protection tools.
High-risk of fraud -
When a cardholder does not authorize a transaction, it is considered fraudulent. The likelihood of fraud is higher in high-risk organizations, which can happen in any industry. Also, high-risk firms accept card-not-present transactions, which are regarded as less secure than card-present transactions and are therefore taken.
Chargebacks commonly result from fraudulent transactions. Credit card information theft that is unreported results in fraud. After the fraudster has made a purchase using the card, the cardholder notices a write-off and requests a refund by initiating a chargeback.
The actual procedure of returning the funds is quick, but the time-consuming process of checking each transaction for legitimacy also involves the risk of harming the merchants' reputation, which drives up network fees.
The merchant must set up an account with a high-risk processor with effective anti-fraud measures to avoid an unfavourable outcome.
Which is the Best High-risk Gateway?
Today, the high-risk merchant can get many service provider that offers their services to high-risk businesses. But, the most challenging work is finding the best among the thousands that suit your business model.
To make your task easy, we recommend you go with PayCly. PayCly is a specialized service provider that deals with high-risk businesses such as forex, IPTV, adult, etc. As "PayCly," we offer the best possible services for your high-risk companies at the best rate in the market. You can get a high-risk merchant account, high-risk payment gateway, and high-risk credit card processing in one place.
PayCly also offers many benefits that help high-risk merchants boost their high-risk businesses. Let's check some of the best benefits of PayCly.
- Offer international payment processing and allow the merchant to accept most credit cards from all over the world. Some of the most popular cards are – Visa, MasterCard, American Express, etc.
- Along with credit cards, it offers alternative payment methods such as net banking, mobile payment, e-wallets, and even crypto-currency.
- We offer futuristic anti-fraud and anti-chargeback tools. Also, we offer PCI DSS compliance high-risk gateway to protect sensitive data.
- 24/7 client support through live chat and email.
- We can accept the majority of the currency from worldwide.
- Offer the best recurring and subscription billing.
Final Thoughts -
Having a high-risk gateway is essential for any high-risk business. High-risk gateway offers many benefits which help merchant to raise their businesses at the global level. But, obtaining a high-risk gateway is not easy work. Merchants have to face many challenges, which we already discussed above.
The high-risk merchant can get many options today, but we recommend you go with PayCly.
PayCly is one of the best and most reliable payment service providers. It completely understands your business requirements and offers you the same.
Feel free to contact us any time. Our expert team is always ready to serve you.