Credit Card Processing for Big Ticket Sales
When your business has an online merchant account, it is quite easy to accept payments via your e-commerce website. Through the payment getaway, the money can be easily transferred to the account of the merchant that it is linked with, making the entire process hassle free.
Virtual terminals allow your startup to accept payments from many different credit card companies. Some examples of these include MasterCard, Visa, Amex, and Discover. They also allow you to accept debit cards, digital payments, and international payments.
One factor that causes concern for customers when using online gateways is the security of the entire process and their valuable information. Our gateways and systems are designed to ensure a client's confidentiality, making certain that all their information is protected and kept highly secure and safe.
The virtual terminals that are created when your business's account is set up with us allow your customers to perform their transactions on the go. Though the information on the payment will need to be entered by the customers, the fact that the entire process is safe and easy is a major attraction for them.
Your business can also offer your clients some value-added services online such as chats, email facility, online support systems, and help via calls.
High Average Tickets High Transaction Volume
When you go out and explore the market for your business, you will find that there is a huge difference in the prices of tickets that are being offered by retailers. Some are low, while others can be quite high. Usually, businesses selling low-end products will have tickets which are priced lower, while those dealing with high-end products such as home appliances will have high ticket prices.
A known fact is that even though these high-end product dealers are making fewer sales than the low-end ones, they will still be making more money. The reason for this is the price difference and the usage of the two products. Though this seems to be quite straightforward and logical, you will be surprised to know that when approving an application for a merchant account, a credit card company will not use the same sense of dealings since the process of assessment requires answers to entirely different questions.
A credit card company will view these high-end product dealers the exact opposite from what they seem. To anyone, these businesses will look profitable and will easily be able to make their payments, but the credit companies look at them as high-risk customers and are suspicious of their transactions.
There are different reasons for why this happens, one of them being that there are many frauds present in the industry and when dealing with expensive products, you need to be careful with your business transactions as there is a lot of money involved which may not be recovered. Another reason is that when customers purchase a product that does not cost too much and experience buyer's remorse, they will let go of the feeling quickly. However, when an expensive product is involved and the customer is not happy with the purchase, they will either want to return it or replace it with another one which might cost less or more than the first product, and dealing with such issues is not easy.
Closed, Denied, Cancelled, Shut Off by Your Credit Card Processor
It is common that a business that offers high average tickets is denied to use the services of different banks and other service providers due to the high risk associated with them.
There are many reasons that your business can face denial, one of which could be that the merchant provider you chose does not like to deal with high-risk businesses. When some other service provider finally agrees to take up your business account, you will need to ensure that it does not come with a list of limitations that will cause a hindrance in your operations.
Once your business proposal has been accepted, keep in mind that these services providers could shut off their services at any given time due to any reason, which will cause a lot of disturbance in your daily transactions.
Some of the reasons that your merchant account application gets denied or your business get shut off are that your business has a bad credit history, it is a new entrant in the market which makes your business riskier, or your company type is not acceptable by the service provider.
Newly Established Startup Companies vs Established Processing History
When you are a newly created company, you must understand the need of accepting credit cards from your customers since these days, people prefer making payments using their cards rather than using actual money. Especially when you are an online business, your business needs a merchant account to help you complete your payment transactions.
Being a startup, you will face a lot of issues in setting up a merchant account as your business is considered to be high risk, and many other factors will also be checked before your application gets accepted. Your business will also not have a credit card history, which will make it difficult for service providers to accept your request.
Domestic and offshore options
There is not much difference between an offshore account and a regular one. The primary difference is that a regular merchant account will require your business to be in the same geographical location as the service provider, but for an offshore account, your business can anywhere.
If your business is considered as a part of a high-risk industry, then availing an offshore account will be best for you. This is especially so if your business operates as an online retailer selling products considered illegal in a particular country, has a weak credit history or high sales volumes, has a registered address of an offshore site, or has larger refunds.
There are a few advantages associated with national merchant accounts as well, such as the fund time is particularly quick and can be accomplished between 24-72 hours, the fees for this type of account is lower, and it is easier to use.