The internet remains the single biggest marketplace in the world today. According to Statista, annual global e-retail sales of $2.3 trillion are expected to reach $4.48 trillion by 2021. The epicenter of internet sales are websites, which act as digital “storefronts.” So it’s safe to say, even though web design & web developers are often considered Hard to place Merchants, these business types will remain a booming business for years to come. Talk to a High Risk Payment Processor that specializes in your specific business type to help guide you through the process towards approval and start accepting payments today!
In order to conduct business in this environment, web design services and web developers must be able to process credit card payments online with a payment processor. Wire transfers are often too complex and asking users to switch to a platform like PayPal mid-transaction is too cumbersome.
The ultimate merchant solution is a credit card payment gateway for your web developers business to start accepting payments. This requires the participation of a payment processor and payment services provider to help you grow your business.
Despite the profits in the industry, many banks and traditional financial institutions are reluctant to partner with website design businesses. This is because website design and web developers are considered a “high-risk” industry when accepting payments. It is often characterized by a high volume of “chargebacks” or credit card disputes.
Chargebacks occur when disputes are launched by customers over credit card transactions. These can be started for any number of reasons. In the case of ‘friendly fraud,’ customers simply decide they do not want the product or service they originally purchased. They simply cancel the transaction.
Still other customers will file a dispute with full intent to defraud the merchant. Credit card issuers will often side with the cardholder. Issuing banks will be naturally sympathetic to their clients’ point-of-view as opposed to the hard to place merchants.
When chargebacks occur due to unauthorized charges, payment processors and banks require merchants to refund the cost of a disputed transaction. Web developer merchants that accrue too many chargebacks can find their merchant accounts heavily restricted and sometimes terminated.
Reasons for Chargebacks
Chargebacks can occur for any number of reasons.
In the case of a web design company, a customer may simply decide they don’t care for the finished product. In such cases, they will not pay. This causes a loss in revenue. In addition to lost time, merchants lose the sale as well as the cost of any fees charged by banks.
Chargebacks can also occur as the customer will dispute a charge due to a lack of communication, billing errors and bad customer support. Small designers don’t have the staff available for 24/7 customer care. The lack of availability to resolve the issue can cause customer complaints and non-payment, leading to a rise in chargebacks.
Web design and search engine optimization merchants need to protect their businesses against the dangers of fraud and chargebacks when accepting payments. Furthermore, they need to partner with an online payment services processor experienced in dealing with both emerging and established businesses. A processor experienced in supporting clients through the challenges of maintaining a sound online business model.
SecureGlobalPay has the expertise to help. Our experienced staff is knowledgeable and friendly and ready to answer your questions. Our full-service online payment processing plan includes chargeback mitigation and fraud detection tools.
Complete our easy online application now and begin processing payments in as little as 24 hours.
Preparing for the Application Process
Begin by filling out SecureGlobalPay’s online application.
Click here for a list of items you will need to provide underwriters for review when underwriting Hard to place Merchants.
An application does not guarantee approval. However, merchants who do obtain underwriter approval can begin processing credit card payments in as little as 24 hours.
The Underwriter’s Review
Underwriters are charged with confirming that an applicant is running a law-abiding, reputable business.
Click here for a preview of what to expect during the underwriter’s review of your merchant account.
During their review, underwriters look at many factors to ensure credit card processors are not taking on any unnecessary risk.
Factors that determine a business’ risk include:
- A history of high chargeback (credit card transaction disputes) ratios
- Bank statements
- Credit card processing history
- Credit scores
- Negative bank account balances
- Unpaid bills and late payments
When underwriting going through underwriting with a High Risk Payment Processors, Merchants can best prepare by settling any unpaid debts and putting some savings in the bank. It is also best practice to have the principal with the best credit submit the application. Taking these steps will improve your chances of approval and diminish the likelihood your account will be restricted by processing volume caps or a mandatory rolling reserve.
It is important to be prepared and have a chargeback management plan in place for credit card transactions. SecureGlobalPay is prepared to help.
If you are considered a High Risk Merchant, practicing good record-keeping on all credit card charges is critical to your chargeback management plan. Record the date, time and amount of each transaction. If possible, also record the IP address of the customer’s computer. Having this information available will help fight chargeback disputes.
Good communication with your High Risk Payment Processor is also key. Make sure your business’ name, contact information and return/refund policies are clearly displayed on all company correspondence. This includes websites, e-mails, bills, receipts, surveys and other correspondence. Keeping your name in the forefront of your customer’s mind can help avoid any surprises on their credit card statements.
Having knowledgeable, friendly customer service staff available to answer customer concerns will go a long way toward mitigating problems with chargebacks. If a customer can call and have their concerns heard, they are more likely to be flexible. They are more likely to accept a refund or an apology than initiate a dispute. Make sure communication is available, timely and helpful.
Record-keeping, communication and customer service are the pillars of your chargeback mitigation plan.
Know Your Code
All industries are categorized by SIC Codes and NAICS codes, used by government agencies to develop industry statistics. Ensure your business has the proper code.
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
Working with a dependable High Risk Payment Processor and merchant service provider is key. They specialize in Hard to place Merchants and can help you navigate obstacles like tough customers and inflexible banks. Insist on a merchant service provider that has the expertise in working with high-risk businesses and is accustomed to accepting payments for hard to place business types.
Your best bet is to work with SecureGlobalPay. As a specialist in high-risk merchant accounts, SecureGlobalPay provides payment processing solutions for merchants of all sizes and backgrounds. Additionally, SecureGlobalPay offers fraud filters and mitigation tools to help prevent chargebacks.