High ticket merchant accounts have high ticket sales. These businesses specialize in offering expensive, luxury products or services to their client base. They typically charge high prices for their products and services. High-ticket merchant accounts give high ticket businesses the ability process large ticket credit cards without the risk of funds being held. Merchant accounts that accept credit and debit cards for high dollar amounts and tend to have large transaction sizes are usually deemed as high-risk by most payment service providers.
While this may sound like a fortunate position to be in, accepting credit cards for high-dollar payments comes with its own unique set of challenges. With products and services that start in the hundreds and top out in multiple thousands of dollars, any single bad transaction can make a significant dent in a business’s operation if not processed correctly.
High-ticket merchants face unique hurdles, especially when it comes to operating an online business. The ability to provide high-ticket goods and services online requires a high ticket merchant account and the ability to process credit card & debit card payments. Unfortunately, high-ticket merchants have a reputation for excessive chargebacks when accepting payments for high dollar amounts via credit or debit cards. As such, banks and traditional institutions often classify them as high-risk and will not easily approve their applications for merchant services.
SecureGlobalPay specializes in providing customized high ticket merchant accounts and payment processing solutions to both new and established high-ticket merchants. We also offer streamlined high risk payment gateway solutions for high risk businesses supporting all card types. We can provide an eCheck merchant account for high-risk business, in addition to the traditional acceptance of credit cards & debit cards for high dollar amounts. SecureGlobalPay offers fraud filters, payment gateways and chargeback mitigation programs.
What is a High-Ticket Merchant Account?
High-ticket merchant accounts enable high-ticket businesses to process credit card payments & debit card payments for high dollar amounts for their products and services.
Examples of high-ticket business include:
- Auto Accessories and Parts
- Credit Repair
- Designer Fashion
- Online Furniture
- Luxury Goods and Services, such as Private Planes and Travel
- High Ticket Coaching Merchant
- Precious Metals
- Tech Support
- Tickets for Flights, Concerts & Excursions
These are some examples of high-ticket merchants. SecureGlobalPay is prepared to support these and other high-ticket merchants, including those with single transactions in the six-figure range. Fill out an application today and learn why high-ticket businesses are SecureGlobalPay’s specialty.
What is a High-Ticket Merchant Business?
High-ticket businesses are those that sell high value items at a premium price, such as luxury cars or high-end jewelry. The profit margin on these items can be quite high, which makes them attractive to entrepreneurs and affiliate sellers looking for a source of steady income.
To run a high-ticket business successfully, you’ll need to have access to a large amount of capital and ideally expertise in the field. You’ll also need a provider who can provide large ticket credit card processing.
High ticket merchants often rely on third parties to fulfill their orders, which can be time-consuming and expensive. To minimize these costs, you may want to consider a high-risk merchant account online rather than through a physical storefront.
High ticket merchant businesses can also be risky, so due diligence is recommended. If demand for your product drops off, you could lose money.
How can I Accept Large Credit Card Payments?
Accepting a credit card payment can seem to be a big challenge for small businesses. Many business owners are concerned that accepting credit cards means they’re taking on additional risk, and they may be nervous about how to deal with potential fraudulent charges.
To make things easier, there are a few things you can do to make the process of accepting credit card payments as easy as possible for your business.
You should consider using a credit card processing service. These companies can help you set up an account and accept payments from customers using credit cards. They’ll also help you keep track of your customers’ transactions and protect you from potential fraud.
This involves getting a merchant account with a payment processor that allows large ticket credit card processing. Once you have a merchant account, you can start accepting payments by adding a payment gateway for high-risk business to your website.
If you plan to take tens or hundreds of payments per day, then it is best to get an advanced payment processing solution that can deal with large volumes of transactions and possibly Level 3 credit processing.
With this solution, you can automate the process of receiving and processing payments so that your business can operate at optimal efficiency.
How do I Apply for High-Ticket Merchant Services?
Apply online with SecureGlobalPay for a high-ticket merchant account today. Be prepared to submit the following items for review:
- A valid, government-issued photo ID (e.g., driver’s license, state/provincial ID, etc.)
- A bank attestation or void check
- Bank statements (3 months worth)
- Processing statements (3 months worth)
- SSN (Social Security Number) or EIN (Employer Identification Number)
- The URL to your secure, fully operational website
Please note that your history of chargeback ratios must be under 2%.
E-commerce businesses must have a secure and fully-operational website.
What Qualifies as Large Ticket Credit Card Processing?
Large ticket credit card processing means that your credit card processing business is processing more than $50,000 in transactions per month.
This can be achieved by either increasing your monthly transaction volume or by increasing the dollar value of your transactions. Increasing the dollar value of your transactions can occur through changing the products you sell, adding new features to your website, etc.
While the larger turnover is good, it normally also means you’ll need a high ticket merchant accounts provider to handle the volume and protect your business from chargeback issues.
Keep in mind that it does not necessarily mean that you are a large business – it just means that you’re processing enough money monthly to warrant a larger billing cycle. It’s all about digital payment turnover, not necessarily profits.
Which is the Best Merchant Account for a High Ticket Business?
High ticket businesses are businesses in which the average revenue per order is more than $1000.00 High ticket businesses often require large amounts of cash to run, requiring a merchant account that can handle large transactions.
When choosing a merchant account, consider the level of support and service you’ll receive. You don’t want to be stuck with a provider that you can’t get in touch with when you need assistance.
There are plenty of payment processors out there, but not all of them will have the same level of support for high ticket businesses. If you need help navigating the confusing world of merchant accounts, feel free to contact us.
Does Stripe Provide High-Ticket Merchant Services?
Stripe was built with a focus on ease of use and speed, while also including a good level of security. It is quite easy to set up and manage an account.
However, as a general rule, Stripe doesn’t provide high risk account services, including many high-ticket merchant services. If you have a high-risk high-volume business selling goods and services, you’ll likely need a high-ticket merchant services provider like us.
What is Level 3 Credit Processing?
Level 3 credit processing is the highest level of credit processing. It is a process that is reserved for companies that need to pull large volumes of transactions quickly and in a secure manner, mostly B2B or business to government.
The speed and accuracy of this processing are key, as merchants can end up losing sales if they’re waiting too long to complete the transaction. Level 3 credit processing also requires higher security standards, which make it more difficult for hackers to take advantage of merchants.
With Level 3 credit processing, you can complete your transactions faster than you could with Level 2. Level 3 also gives merchants more credibility because it demonstrates that you’re serious about the security of your data.
Level 3 credit processing involves authorizing the transaction and receiving payment for it later.
The Underwriting Process for High Ticket Merchant Accounts
Underwriters are tasked with reviewing business applications. They try and identify those that operate according to a sound business model and abide by all legal and industry rules and regulations.
Underwriters consider a variety of factors when assessing risk. Businesses with a history of high chargebacks or credit card transaction disputes when accepting high dollar amounts, always pose a risk. Additionally, those with negative bank account balances, unpaid bills, a history of late payments or questionable credit scores are also very risky.
Merchants can take several steps to maximize the likelihood of an approved application:
- Pay all outstanding debts and bills
- Provide proof that you have some capital in the form of bank savings
- Ensure a principal in the business has a sound credit history and nominate them to apply for the merchant account
Businesses that take these steps are more likely to get approved for merchant accounts and avoid restrictions such as higher processing volume caps and lower rolling reserves.
High-ticket merchant accounts + high merchant processing volume accounts.
Because High Ticket Merchant Accounts are considered high-risk, many online payment service providers will impose monthly credit card processing volume caps. Once merchants reach the “cap” of a specific number of transactions for the month, no further credit card payments may be received until the following month. For businesses that rely on credit card sales, this means a cessation of all business activity in the short term.
Once a merchant has proven itself to be a reliable partner, its volume processing caps can be removed in as little as three months. Reliable partners are those that pay their bills, maintain low chargebacks ratios and save some capital.
High-Tickets = High Chargeback Ratios
High-ticket merchants are at greater risk of chargeback due to the high prices of their merchandise and/or services. It is easier for a customer to change their mind about a high dollar amount purchases than inexpensive ones. Chargebacks can accumulate to the point at which a merchant literally goes out of business. Under such circumstances, banks and payment processors can be left on the hook for hefty chargeback fees.
High-Ticket Merchant Accounts are also at greater risk for fraud. High-dollar items like jewelry or electronics can often be shipped inexpensively and so are ripe targets for scams by cybercriminals. Items purchased and shipped overseas can end up in any number of destinations. Where fraud is concerned, the merchant, payment processor and sponsoring bank pay the price in mandatory refunds to the consumer.
Friendly fraud, in which a customer receives a product and then claims it never arrived or came damaged or did not meet expectations, involves using charge disputes as a smokescreen. The risk is all on the merchant side while the customer receives a product or service for free.
Above all, high-ticket merchants must be frank and tell processors about the high-dollar nature of their business up front. This allows the processor to set up an account capable of handling the appropriate volume and range of transactions. Failure to make this preparation can cause merchant accounts to become suspended or shut down permanently due to suspiciously high volume. This is often a characteristic of a criminal enterprise or money laundering operation.
Your chargeback ratio is the percentage of transactions which end up in chargeback. A merchant with one hundred transactions per month, four of which are chargebacks, has a 4% chargeback ratio.
Chargebacks and credit card processors
Credit card processors take a risk with High-Ticket Merchant Accounts. Due to the high level of chargebacks in the industry, processors must take care to minimize their own risk. When a business exceeds a 2% chargeback ratio, card associations can often fine the processor that provided the high-ticket merchant account.
Repeated chargebacks and high ratios typically lead to termination of an online payment processing account. Businesses that wish to avoid this must keep their transaction volumes high and avoid chargebacks.
Managing chargeback ratios
Managing chargebacks is possible with concerted effort. High-ticket merchants must be prepared to take steps to minimize risk. There are several ways to do this.
One proven step to minimize fraud is to require customer identification before they submit transactions. Much as some auto dealerships will have a celebratory picture taken of a new car buyer and their purchase, online merchants can request customers send a selfie of themselves holding ID.
Merchants can also:
- Review any orders that appear questionable
- Obtain a digital signature from customers during purchases
- Avoid sales from countries known for internet fraud
Secured Payment gateways are another method to reduce fraud for High- Ticket Merchant Accounts . When accepting mail or telephone order payments, customer credit card information is entered through a gateway or personal terminal. Another way is to use Interac or Automated Clearing House payment processing, which enables deduction of funds directly from a customer’s bank account.
Chargebacks for High Ticket Merchant Accounts are often due to a customer’s failure to remember making the purchase or failing to recognize the line item on their credit card bill. Including merchant name, contact information and refund/return policies on all documents will lessen the likelihood of this happening.
Open communication will help reduce chargebacks. Once a transaction is complete, be sure to send either a paper or electronic receipt. When a dispute arises, offer an immediate refund and train staff to do likewise. The cost of refunds is negligible compared to the liability to business operations incurred by chargebacks.
What is a Large Ticket Transaction?
Large ticket transactions are those that are considered high-value and high-risk. A large ticket transaction is typically defined as an item that costs $1,000 or more.
Large ticket transactions can include the purchase of real estate, intellectual property, securities, cars, boats, and other large assets. They can also include the purchase of a business or a franchise.
This type of transaction requires significant planning and expertise to minimize risk. It is often best to use high-ticket merchant services to handle these transactions, because of fraud risks and amounts at stake.
Large ticket transactions are usually associated with high-risk industries. As such, they may be subject to complex tax rules and regulations in addition to the risk of fraud.
We work closely with you throughout the entire process to ensure that your interests are protected.
High-Ticket Merchant NAICS & SIC Categories
A classification system known as NAICS (the Northern American Classification System) is a list of six-digit codes used by federal statistical agencies to classify business establishments. The classification system aims to gather, analyze, and publish statistical information about similar types of businesses and their impacts on the U.S. economy.
Four-digit numeric codes known as Standard Industrial Classification (SIC) codes are common in the United States and many other countries for identifying businesses and their primary purposes.
The Right Solution for your High Ticket Merchant Accounts
SecureGlobalPay can provide High Ticket Merchant Accounts tailored to your business model. Recoup money lost by using processors like PayPal, Stripe, Shopify other aggregators. Our easy online application process can set you on the right road today!
- No Application Fees
- Competitive rates
- No VISA/MasterCard Required
- Multiple Secure Payment Gateway Options
- LOW Rates and Fees
- No extensive credit checks