The Lowest High Risk Merchant Account Fees & Rates

HOW TO GET THE LOWEST HIGH RISK MERCHANT ACCOUNT RATES & FEES

The Lowest High Risk Merchant Account Fees & Rates

Setting up a merchant account is an essential part of building a successful business. However, if your business is considered high risk, you’ve probably already noticed, that high risk merchant account fees and rates are quite high. But don’t worry, there are many ways how to lower your processing fees. In this article, we will give you some tips that will help you to keep your fees and rates at the lowest.

WHAT KIND OF BUSINESSES ARE CONSIDERED HIGH RISK?

First of all, you may wonder what kind of businesses are labelled high risk. Generally, those are merchants that have excessive chargeback levels (above 2%). There are several different factors, that may cause elevated chargebacks:

  • Many fraudulent transactions
  • The nature of the products and/or services the merchant offers
  • The way transactions are processed (for example, card not present transactions get higher rates comparing to card present transactions)
  • The dollar amount of the average sale
  • The countries the merchant sells to

However, If you have been classified as high risk merchant, don’t be too alarmed, as this doesn’t mean your business is a lost case. All you need to do is to pay attention to any suspicious customer activity and take some essential steps to reduce your chargeback levels.

TIPS TO GET THE LOWEST FEES & RATES

GOOD REPUTATION – when determining your processing fees, merchant account providers usually take into account your company reputation. This is why building a good reputation by selling high quality products and services, will definitely help you to get the best processing fees and rates.

SOLID RETURN POLICY – having an easy and simple return policy will keep many of your customers from initiating a chargeback.

RELIABLE SHIPPING COMPANY – If you ship your products, let your customers know the exact date when they can expect the ordered products. Using a reliable shipping company with a package tracking system is a brilliant idea.

IF POSSIBLE, OPEN A RETAIL STORE – if your business don’t need to be exclusively on the internet, opening a retail location will help to keep your rates low. Most merchant account providers see brick and mortar locations as less risky and consequently they offer lower rates and fees.

KEEP YOU CHARGEBACK RATIO UNDER 2% - your ultimate goal is to keep your chargeback ratio under 2%. This will help you to get the lowest possible rates and fees. However, also if you cannot keep your chargeback levels that low, realize that you are still completely entitled to a merchant account, but in this case, you may have to agree to a little higher processing rates. Keep in mind that overtime, you will be able to renegotiate your processing fees and terms.

MAKE A RESEARCH

When you are looking for the most suitable merchant account provider, a little research won’t hurt. If you compare the pricing programs from different providers you should notice that all of them have different processing fees and rates. Besides that, while one provider will consider your business as high risk, the other won’t.

Nevertheless, keep also in mind, that there are some merchant account providers that are specialized for high risk merchant accounts. Working with them will be probably the most beneficial for you, as they understand the risks and possible complications that may occur with your specific business type.

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