Best Payment Gateway for High-Risk Business
Choosing a reliable and reputable payment gateway to process your payments can be challenging, especially if you own a high-risk business. SecureGlobalPay provides the absolute best payment gateway for high-risk business without a doubt. Let us show you why.
A high-risk payment processing gateway connects a merchant to a credit card processor. It transfers encrypted transaction information from when a customer checks out to a payment processor. In simpler terms, it is a seamless and secure process for online payment processing.
Banks are fully aware of the risks associated with hard-to-place merchants and want to avoid legal complications and financial losses when providing merchant account services to high-risk industries.
This means that you have to turn your attention to high-risk payment processors willing to take on the risk and set you up with a high-risk merchant account after underwriting your business.
All in all, these providers take a look at your business to determine the level of risk before issuing the best payment gateway for your high risk business.
Choosing the Best Payment Gateway for High-Risk Business
The best payment gateway for high-risk business comes with features that are particularly valuable to high-risk merchants.
High-risk business processing requires multiple merchant accounts with intelligent payment routing to reduce their risk. Acquiring banks to wield this power can block your high-risk merchant account if they believe you have violated one of their policies.
Having multiple merchant accounts with different acquiring banks ensures that your payment processing services continue unabated, but dedicating every high-risk merchant account that you have to a separate gateway can be a management nightmare.
While some payment processing providers might say that this option is great, the best international payment gateway for your high-risk business will tell you to take a different approach–use a single high-risk payment gateway for multiple merchant accounts.
This works by syncing a single payment gateway to multiple merchant accounts and controlling all of them from a central dashboard. Each merchant account can be viewed separately, combined, or compared to one another.
A payment gateway connected to more than one account allows you to accept payment in multiple currencies and track everything from one central location via a single API integration.
Advantages of Using a Single Payment Gateway for Multiple Merchant Accounts
Low pricing
The best payment gateway for high-risk providers is always open to negotiations when you connect multiple merchant accounts to a single payment gateway.
A single merchant account linked to one payment gateway attracts a high price because your level of risk is not spread out.
Minimal Losses
Businesses with multiple merchant accounts channeling through one multi-mid payment gateway avoid significant losses when the services of a payment processor or acquiring bank are interrupted.
If one of these financial institutions is having issues offering their services, you can always count on another payment processor to cover up for this setback.
Track Sales Better
The best payment gateway for high-risk businesses allows you to track sales from your multiple merchant accounts for both credit card and ACH payments via eCheck payment processing solutions.
If you have more than one website or POS system, tracking sales via a single merchant account can be mentally consuming, and why merchants need a robust virtual terminal. With a disorganized stream of data, matters can be made even worse when customers demand refunds or issue chargebacks.
Less Risk
The best payment gateway processor for any high-risk business will tell you that every business poses a different type of risk to an acquiring bank when accepting high-risk credit card transactions.
However, using a single merchant account, it is extremely difficult to focus on chargeback prevention. With one single merchant account, businesses expose themselves to a bigger risk of customer disputes and excessive chargebacks that can crumble your business if the 1% threshold is breached.
If these issues reach a level where they can no longer be managed, you could lose your merchant account.
With multiple merchant accounts representing different businesses but in sync with one payment gateway, the damage is limited to just one business.
Acquiring banks links high processing volumes to high risk. It makes plenty of sense to spread your risk across more than one merchant account. By doing this, you lower the risk factor that comes with your monthly volume in sales.
Cash Flow Management
According to a bank study, 82% of small businesses fail because they mismanage their cash flow. Even though cash is the fuel that keeps a business running, many business owners wrongly manage their financial resources because of a poor understanding of cash flow management.
When you link your high-risk multiple merchant accounts through a single gateway, it gives you an opportunity to monitor the movement of cash in real time.
If your accounts are scattered across different acquiring banks, it lures you into a false sense of security, that makes you think you can afford to spend more than you have.
A single payment gateway with multiple banks helps you anticipate cash flow, cleverly manage expenditures, pay back debt, and more importantly operate within the confines of sustainable growth.
Best Payment Gateway for High-Risk Business: Intelligent Payment Routing
The best payment gateway providers for high-risk business also offer an important payment service feature also known as intelligent payment routing.
Money moves from one bank account to the other through a process known as payment routing. This process works through a payment network that connects a cardholder’s issuing bank with an acquiring bank.
For transactions to move forward, they have to be in line with the bank’s terms and conditions. This is what determines whether the transaction has been successful or declined. This same routing rule is used to protect banks and business owners from criminal activity.
However, using ordinary payment routing can be slow, it is inefficient because there are usually too many declines.
Intelligent Payment Gateway Routing
The emergence of intelligent payment gateway routing has resolved this issue and consists of multiple payment service providers working together towards a common goal–identifying the quickest route to an acquiring bank during a transaction.
Intelligent payment routing allows a transaction to go directly to an acquiring bank that is most likely to accept and process it.
This is a smart payment solution for frustrated shoppers whose payments never seem to go through and merchants with low conversion rates because customers abandon their shopping carts.
Intelligent payment routing allows high-risk merchants to distribute their payment loads and reach their payment processing goals.
Routing Number
A routing number is used to identify a bank and has nothing to do with a merchant account. Banks have no problem making them available through customer bank portals or publishing them online.
This routing number is required for intelligent payment routing because it initially identifies the acquiring bank before a merchant’s account number.
The routing number is safe because it works like a postal zip code and by providing a designated destination, the money should be transferred.
While you might need a home address or street number to receive your post, a routing number and an account number ensure a transaction is sent through the right channel.
How Intelligent Payment Routing Works via the Best Gateway for High-Risk Business
The best payment gateway for a high-risk business is all about handling efficient transactions and sending funds to the best acquiring bank that will sort it out successfully and quickly.
Intelligent payment processing routing goes beyond a traditional routing system by selecting the route with the least resistance out of all acquiring banks.
It looks at all available banks as well as their rules or regulations and optimizes a transaction for completion without delay.
If the first acquiring bank refuses a transaction, the smart payment routing system submits the transaction to the second bank that is most likely to approve the funds’ transfer.
Intelligent payment routing is perfect for international high-risk merchants and works beyond geographical barriers. Localized smart intelligent payment gateway routing can be adopted on a global scale with different payment networks allowing merchants to accept payments from anywhere in the world.
Why Intelligent Payment Routing With Your Best Gateway for High-Risk Business is Worth a Shot
Why is smart payment routing with the best payment gateway for your high-risk business worth a shot?
Intelligent payment routing assists high-risk account merchants in a multiple-provider setup and addresses 2 major difficulties:
Boost success rates – By intelligently routing transactions through a gateway with the best authorization rates, you can significantly increase your conversions.
A routing engine from the best payment gateway for a high-risk business also allows merchants to retry softly declined transactions that would otherwise have been lost through traditional payment routing.
Cost reduction – Using different payment processing providers allows you to channel a transaction to a provider that offers you the best price.
According to a recent study, the best payment gateway for high-risk businesses can save you up to 30% in payment processing fees.
While traditional routing restricts your transactions only to one acquiring bank inside your payment network. The underlying technology of intelligent routing is different, and makes high-risk payment services very efficient and can also help you the best deal possible in processing fees.
If your core market is only in one country, traditional routing might be manageable and even then you could be losing plenty of money on the table because of the declined transactions and a slow processing outlay.
On the other hand, if you want to do business across borders and deal with an influx of orders from customers using multiple currencies that would not lead to declined transactions and disappointed customers–use intelligent payment routing.
Using intelligent payment routing via the best payment gateway tailored for a high-risk business helps you achieve the following:
- Seamless payment process encourages repeat shoppers
- Attracts an international audience
- Targets emerging markets
- Lowers marketing costs
- Stands you apart from the competition
