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Web Design & Development Credit Card Processing

An estimated 1.66 billion people worldwide purchased goods online in 2017, according to Statista, an online statistics, market research, and business intelligence portal. Global e-retail sales totaled $2.3 trillion and were projected to spike up to $4.48 trillion by 2021.

Why It’s Difficult to Get a Web Design and Development Merchant Account

Banks and traditional lenders classify web designers and developers as high risk, and, therefore, often won’t approve them for merchant accounts. They are classified as high-risk because they are prone to chargebacks, which is when a bank forces a merchant to refund the cost of a disputed or fraudulent transaction. However, with a chargeback, the customer is not obligated to return the product or service it received. When merchants have too many chargebacks compared to their sales numbers, merchant account providers can freeze and eventually terminate accounts.

Reasons for Chargebacks

For instance, some merchants are not prepared for difficult customers or those who are unsure of what they want. The work designers do is very subjective and expensive, so when their customers decide they don’t want to pay for their services it is a major hit. Designers and developers not only lose their time and resources, but the sale. Also, when a chargeback is found valid, banks charge merchants exorbitant fees.

Also, web design and development startups may not offer the most trained, and appropriate customer service as larger, more established businesses. If customers complain about work they have done and there aren’t good customer support representatives available to help the problem, the merchant can expect rises in refunds and chargebacks.

Know Your Code

All industries are categorized by SIC Codes and NAICS codes, which are used by government agencies to develop industry statistics. It is important to have proper classification to prevent funds from ending up being held in reserve due misrepresentation of a business.

Here are some common SIC and NAICS codes in the industry:

SIC 7371: Computer Programming Services
SIC 7373: Website Design Service

NAICS 541512: Computer Systems Design Services
NAICS 541511: Custom Computer Programming Services
NAICS 541519: Other Computer Related Services
NAICS 519130: Internet Publishing and Broadcasting and Web Search Portals

In Conclusion

The best way to get a web design and development merchant account is to know what you are up against, like tough customers and inflexible banks, and look for a merchant service provider that has the expertise to work with high-risk businesses.

When banks won’t help, your best option for getting a web design and development merchant account is to turn to a high-risk merchant service provider, like SecureGlobalPay. As a provider that specializes in high-risk merchant accounts, such as those in the web design and development industry, SGP caters payment processing solutions to meet the needs of merchants of all sizes and with many different backgrounds. Additionally, SGP offers fraud filters and mitigation tools to help prevent chargebacks. The application process is simple and quick. Get started today!

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