Almost every business takes credit card payments for their products and services these days. Companies that don’t accept credit, debit, or online payments are at a considerable disadvantage in a nearly cashless society. Even a small business can benefit from using a high-risk merchant account payment gateway to make things easier for customers to make purchases.
Sadly, many business owners have misconceptions about using high-risk merchant account services for their companies. While these owners might believe that they are avoiding risks, they are actually missing out on the many benefits that exist for their businesses.
Here are 5 misconceptions that you should consider before dismissing the idea of working with high-risk merchant accounts.
In the past, it was difficult for fledgling or small businesses to produce the appropriate documentation necessary to qualify for a reliable merchant account. Many small businesses were hesitant to put in the time and effort due to the fear of being denied.
Today, a merchant account for high-risk business owners is easier to obtain than ever. With just a simple online application and easier to obtain information, your company can apply and get approved in no time.
Many business owners fear that even getting approved can take too long to be worth the effort. Most companies are able to respond to your application in as little as two days.
With so many more small companies relying on payment gateways and merchant providers to help their businesses, there are more options than there has ever been before. This competition has led to decreased fees, lower overall costs, and more options.
Of course, you still have to be careful about which provider you decide to use. While competition can lead to a number of enhancements, it can also attract those looking to take advantage of the market.
People have learned to always be on the lookout for hidden fees, high-interest rates, and unfair policies. Even though a company may want to start working with a merchant account provider, it may abstain out of fear of costly hidden fees.
Legally, merchant account providers are required to provide all of their customers with a complete list of every free and cost associated with their account. Unfortunately, some providers make it difficult to find information about their fees and charges.
The best high-risk merchant account will make sure you understand your agreement’s costs. You should be able to get honest answers to all of your questions before signing on the dotted line.
Of course, it’s wise to stay away from providers who go out of their way to hide their fees, especially if they have artificially low rates upfront.
Your small business may not be as big as some of the mega-companies out there, but that doesn’t mean that the money you make is insignificant. You might feel like using a high-risk merchant account is just out of your league because you’re just starting out or are still a small business.
You’ll be happy to know that the majority of new merchant accounts are being opened by small businesses. That means that high-risk merchant account service providers are more interested in small businesses and offer a wide range of options made for their unique needs.
When you’re exploring our options to find a high-risk merchant provider, make sure you ask about their experience with new and small businesses to ensure it’s a great fit.
Both merchant accounts and payment gateways play an important role in your company, but they aren’t the same thing. These two services offer completely different functions. Having only one of these may not be enough to fully maximize your success.
When it comes to having the “payment gateway vs. merchant account” discussion, it’s critical that you understand how each of these work and what they do.
A payment gateway helps facilitate transactions while allowing you to process these payments. When people talk about payment gateways, they are often referring to online transactions. Without a payment gateway, your customers don’t have an easy and reliable way to pay for your goods and services online or over the phone.
A merchant account is like a bank account where payments are held until they are deposited into your company’s bank account. Because of security policies, funds are not transferred directly from one bank account to another bank account.
When a customer makes a purchase, they enter their credit card information into your payment gateway, whether it’s online or through a credit card reader at your store. The payment processor then confirms that the funds are available in your account and approves the transaction. The merchant account then acts as an intermediary holding account where the funds pass through before making it to your company’s bank account.
It may sound complicated, but these systems work together behind the scenes. The takeaway is that you can’t successfully operate with just one.
While there may be plenty of misconceptions about how merchant accounts work and which ones are worth your business, there’s no need to believe that there aren’t any good options.
At High Risk Pay, we pride ourselves on being the one-stop-shop for your payment processing and merchant needs. Whether you’re running a small business or a large enterprise, we have the options you’re looking for to help your customers have their best possible experience with your company.
Give us a call today to get your free consultation and to understand how using a merchant account can help your business grow and be more successful. We’re even happy to discuss any myths or misconceptions you’ve heard through the grapevine.
It’s time to take your business to the next level: call us at High Risk Pay today.