Best Merchant Account for High-Risk Ecommerce
Technological advancements have shaped the global economy with millions of customers turning to the Internet for their shopping needs. Today’s savvy business owners are well aware of the opportunities that lie ahead and are always looking for ways to take advantage of this massive market. Online businesses looking for the absolute best merchant account for high-risk eCommerce turn to SecureGlobalPay for their credit card processing needs.
Everything is available on the Internet including electronics, shoes, toys, clothes, and even tools for your favorite DIY projects. Some of these products are questionable at best and too many returns, chargeback disputes, and customer support issues place some of these businesses in a high-risk category. Once labeled as high-risk, these merchants find it difficult to accept payments through standard channels.
Ecommerce sites like Amazon, Overstock, Walmart, Crate and Barrel, Zappos, and Wayfair rake in billions of dollars every year because of the convenience that comes with shopping online, but it is not only American businesses capitalizing on the huge eCommerce space. These multinationals have no problem processing payments. It’s the smaller, home-based businesses trying to compete in this marketplace that require the absolute best merchant account for high-risk eCommerce they can find.
China’s retail eCommerce market is regarded as the largest in the world, with $2.3 trillion in sales last year. According to market reports, this revenue represents over half of the global eCommerce market which is presently worth $4.3 trillion.
Ecommerce is a rapidly expanding industry with plenty of opportunities for anyone looking to start a profitable business. But the online industry, in general, is considered high risk by the financial partners that help these small businesses process card payments from their online customers.
Traditional financial institutions see the eCommerce industry as a financial and reputational risk. They refuse to budge even with the existing opportunities. For these retail banks and payment processing companies, the advantages simply do not cover up for the risks involved. This is the primary reason high-risk businesses seek out credit processors that specialize in high-risk accounts.
If these institutions are not comfortable providing merchant account services for the eCommerce industry, what are your options?
The only way you can accept and process payments from customers in the high-risk credit card industry is to seek out the absolute best merchant account for a high-risk eCommerce you can find.
Let us look at why banks want nothing to do with this lucrative industry and delve deep into what the best merchant account for high-risk eCommerce providers bring to the table.
Why Banks Are Not Your Best Merchant Account for High-Risk Ecommerce Options
There are many financial and reputational threats that stop a bank from offering high-risk processor merchant account services.
Below are a number of reasons why they steer clear and how the best merchant account high-risk eCommerce providers fill this void.
Ecommerce Online Security Breach
Ecommerce businesses are vulnerable to cyber-attacks and online security breaches. Some of these security vulnerabilities include website hacking and phishing.
However, the best merchant account for high-risk eCommerce providers can protect your business by offering the following:
- Initiate transactions via SSL certification
- Monitor your website regularly for viruses and malware
- Select a safe and secure platform for your eCommerce business
- Enforce extra layers of network security beginning with a firewall
Customer Chargebacks and Refunds
One major reason why a bank cannot be your best merchant account for high-risk eCommerce is that the online industry is riddled with refunds and disputed orders.
Most times, this problem usually emerges when a product is not shipped or money is deducted from a cardholder’s account without consent.
Chargebacks and refunds are also initiated when an item description does not match the product after it has been received or when a customer is charged twice for a single transaction.
The best merchant account for high-risk eCommerce providers offer the following:
- Create a quick and simple refund system
- Implement friendly fraud filters
- Provide early warning chargeback services
- Tracking scanners to minimize payment errors
- Generate tracking numbers to confirm orders and shipment
Intellectual Property Violation
Intellectual property and a violation of copyright laws is another common issue in the eCommerce industry.
Many eCommerce businesses use website logos, content, taglines, icons, and much more without even considering that they could be on the wrong side of the law for copyright infringement.
This violation is a reputational risk that banks would rather avoid because they could get sued, or pay a fine.
Rather than running to the best merchant account high-risk eCommerce provider for help, a merchant should take responsibility here.
- Avoid using the intellectual property of another business
- Do not discuss vital information in un-secure environments: i.e. live chats
- Enforce strict policies and practices about copyright rules
- Enlighten your employees about intellectual property violations and copyright infringement
Dodgy transactions and stolen credit card information are commonplace in eCommerce businesses. When online criminals hack stolen card information, they use it for online purchases.
Many businesses launch themselves into the eCommerce marketing space too quickly with little consideration towards online security and this is a big concern for banks.
The best merchant account for high-risk eCommerce processors look out for you in this regard and make sure you are covered in these areas:
- PCI compliance is used to protect sensitive information about cardholders on your website
- Implement Secure Sockets Layer authentication for data protection
- Authenticate your business identity and encrypt all your data
Poor Authentication Methods
Weak authentication methods also leave eCommerce businesses prone to online criminal activity. As a high-risk merchant, if you are validating users on your eCommerce website with only your user ID and password, your data can easily be compromised.
By partnering with the best merchant account high-risk eCommerce processors, you are guaranteed better authentication methods.
The best merchant account for high-risk eCommerce providers uses multi-factor authentication methods.
- Provide additional layers of security
- Ask for verification code and not user IDs and passwords
- Reduce the risk of stolen data
Extra Considerations of the Best Merchant Account for High-Risk Ecommerce Processors Provide
Here are some additional considerations that the best merchant account for high-risk eCommerce processors provide:
Demand for Card Verification Codes (CVV) During Checkout
Card verification checks prevent fraudulent transactions. By asking for the three to four digits on the back of a payment card through a virtual terminal, shopping cart, or payment gateway, eCommerce businesses can help confirm if the card is an authentic cardholder making the purchase.
Include Address Verification Checks (AVS) During Checkout
Most times when a criminal uses a stolen credit card, he does not have an authentic billing address for the card.
During checkout, the best high-risk eCommerce merchant providers incorporate a compulsory Address Verification Check that compares the postal code and billing address during purchase with the credit card issuing bank information on file.
The best high-risk eCommerce payment processors use this anti-fraud tactic to validate their orders.
Incorporate Address Autocomplete to Reduce Data Entry Mistakes
People have the tendency to make mistakes when they fill in the information. They may forget the name of the road they live on, get their house number wrong or simply be in a rush and not include the town they reside in.
These types of mistakes usually go unnoticed, until the shipments turn up at the wrong locations.
These types of developments can throw eCommerce businesses in jeopardy with disgruntled customers asking for their money back or threatening to leave bad reviews about your shabby services.
To avoid this, an ideal high-risk merchant credit card processor will integrate an auto-complete tool into your eCommerce website that authenticates customer addresses when they are checking out.
The best auto-complete tools provide additional insight into whether the address is an office address, residential address, or even a multi-unit location.
As a merchant, this helps you make crucial shipping decisions as if it is alright to ship on weekends or public holidays when most businesses are closed.
Best Merchant Account for High-Risk Ecommerce Provides Increased Protection
The best merchant account for high-risk eCommerce providers is well aware of the challenges that come with servicing this industry.
This is the reason why they are always in the loop about new technology and software tools to protect your eCommerce platform, storefront, or marketplace from suspicious transactions and fraudsters.
With these tools at their disposal, your eCommerce business can automatically detect and remove suspicious orders, validate customers as well as generate custom filters that block and redirect visitors from your website if they are coming from high-risk countries.
In terms of providing security measures for your business, the best high-risk eCommerce merchant account providers bring plenty to the table, but you also have your own part to play.
Keep an Eagle Eye on High-Ticket Orders
Pay close attention to high-ticket purchases, orders with a high resale value, and items purchased in bulk. Be wary of people looking to sell a huge amount of gift cards. Ensure that you manually review these orders when you come across them.
Call the Customer
A repeat customer can suddenly decide to make a high-ticket purchase, there is nothing wrong with that, but when this happens you should be on your toes. Take this as a red flag, especially if this particular customer has not done it before.
The best merchant account for high-risk eCommerce providers has systems in place to detect these types of unusual buying behavior.
When this abnormal purchasing pattern comes to your attention, do not wave it off. Get in touch with the customer by email or phone to confirm the order, before allowing the transaction to go ahead.
If you reach the customer, confirm the details of the order as well as the identity of the aforementioned customer. In most fraudulent cases, the contact information provided would be inaccurate.
Highlight the Security Measures Taken
Online shoppers want to know the measures that have been taken to protect their payment information.
Be sure to highlight the security measures your ideal high-risk eCommerce merchant account provider has taken.
Be specific about the security parameters in place–particularly on the checkout pages where customers provide sensitive information.
Trust is the building block of any successful eCommerce business and telling customers that they can shop in a safe and secure environment is a great way to boost conversions.
This is a vital requirement for wooing first-time online shoppers who find your website with a Google search or paid advertising.
Keeping Up With the Criminals
Online criminals are always coming up with new ways to scam businesses and fleece personal information. You need to keep up with their latest activities in order to adapt your security solutions accordingly.
The best high-risk eCommerce merchant account providers double as technology consultants and let you know about the latest developments in a rapidly evolving high-risk eCommerce environment.
Train Your People
Even though the best merchant account for high-risk eCommerce providers have a skill-set to protect your business long-term, your team should also be involved in ensuring the security of your customers and business is not breached.
All your employees should be fully aware of the company’s fraud prevention plan. Information should not be available only to management.
Tell your team about the benefits of sticking to an anti-fraud plan and enlighten them on how it refines your eCommerce business strategy as a whole.
Saddle your team with some responsibilities by training them on how to detect fraud and differentiate real customers from fraudsters.
Stop the Delivery of Fraudulent Purchases
Robust security measures will not stop fraudulent orders from filtering in from time to time. You need to be prepared for this scenario. To make matters worse, some of these fraudulent orders might have been shipped before they were detected.
The best high-risk eCommerce merchant account providers have tools that can block these orders before they arrive in the wrong hands.
These tools are highly recommended because they save you from forking cash for chargeback fees.
High-Risk Ecommerce Merchant Account Requirements
Depending on the high-risk eCommerce account provider you decide to use, requirements for a high-risk merchant account may vary slightly.
However, as a general rule, the best merchant account for high-risk eCommerce providers asks for the following documents:
- Certificate of company registration
- Article memorandum of association
- Registration of directors (if any) is issued within 90 days and duly signed by the director of the company
- Registration of shareholders (if any) is issued within 90 days and duly signed by the director of the company
- Incumbency certificate
- Good standing certificate
- One-page information about the business, highlighting transactions, origin, and destination of funds, and anticipated account activity
Additionally, all directors, shareholders, officers, and beneficiaries of the eCommerce company are mandated to provide the following documentation:
- Copy of valid documentation e.g. International passport or driver’s license
- Copy of a utility bill (water, electricity, fixed internet bill, or fixed phone line bill) within the last 3 months showing their full name and a valid residential address. Mobile bills are not accepted.
- A bank reference, written on a bank’s official letterhead. This should include the type of account and the duration of the banking relationship (a minimum of 2 years is recommended) This letter must be written within the last 3 months.
- Professional reference letter issued within 3 months by an accountant or lawyer
Best Merchant Account for High-Risk Ecommerce | Tips for Keeping Your Account Healthy
- Maintain all transaction records of a customer disputing a charge until the issue has been resolved
- Be consistent with your business name and your website descriptions as well as order confirmations. If customers fail to recognize a descriptor, they will most likely demand a chargeback
- Be clear and transparent about your products, features, quality, sizes, etc
- Stick to your delivery timelines and do not make promises that you cannot fulfill
- The name of your company should be evident and the contact information should be clearly shown on your site, the location of the business must be visible too
- Privacy, exchange, return and refund policies should be indicated on your site
- Every delivery should be confirmed with a notification
- After delivery, follow-up with an email, phone call, or satisfaction survey to confirm if the customer was happy with the purchase
Best Merchant Account for High-Risk Ecommerce Tips| Elements to Improve the Shopping Experience
- User-friendly navigation tools and simple checkout flows
- Testimonials from previous customers
- Validation from authoritative and trusted sources
- Secure and reliable payment processing
- The website should be functional and compatible on mobile devices
- Availability of promotional campaigns and discount codes to bring customers back
- Encouragement of customer-generated content like ratings, reviews, and photos after the product has been received
Best Merchant Account for High-Risk Ecommerce Tips| How to Profit from an Ecommerce Business
- Find out what people are looking for in the market
- Develop an action business plan
- Build a highly responsive website
- Advertise your new business
- Follow up with customers and make them buy repeatedly
- Provide informative value about your products and services
Best Merchant Account for High-Risk Ecommerce Tips| Integrations to Help You Succeed
- Payment integration that allows customers to make payments securely
- Point-of-sale system (POS) to keep up with your store’s inventory
- Shipping integrations that automate the delivery process
- Inventory integrations if you offer plenty of products
- Integrations that track purchase behavior inside your store so that you can make data-driven decisions
- Customer integrations like live chat or chatbot for efficient customer service
- Accounting integrations to manage budgets, payrolls, buying-and-selling charts, profit-and-loss charts, and cash flow statements
- Marketing and emailing integrations that allow you access more customers and generate online traffic to your store
- CRM integrations manage your relationship with customers and transform them to repeat customers
Why You Need to Partner With the Best Merchant Account for High-Risk Ecommerce Provider
It is impossible to run a successful eCommerce business without accepting and processing debit or credit card payments.
This can be a tricky prospect because of the risks involved in this industry, so it is crucial that you get it right. Instead of wasting your time figuring it out or having your application rejected multiple times, partner with a high-risk eCommerce provider like SecureGlobalPay to boost your chances of approval.
Partnering with the best merchant account for high-risk eCommerce providers guarantees you a seamless payment process that is effective and stress-free.
SecureGlobalPay has worked with a considerable number of high-risk eCommerce businesses and helped them set up payment solutions tailored to their specific goals and marketing objectives.
As one of the best merchants accounts for high-risk eCommerce payment processing companies around, we understand the industry, the problems, and the process required for your business to remain profitable and competitive in the retail market landscape.