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eCommerce Merchant Account

StoreE-commerce has changed how people buy goods in a big way. E-commerce, online-only, companies now sell everything from furniture to concert tickets.

People don’t have to go from store to store to find the items they want. Now, all they need to do is visit a website that has those items.

Customers enter their credit card details into secure forms, and the rest takes place online. The business gets the order, packs, and ships the goods to the customers.

However, e-commerce sometimes gets put into a high-risk area for credit card sales, but one of the issues comes down to chargebacks. Find out why low-risk merchant account servicers may not like handling accounts for e-commerce companies.

Why High Risk?

An e-commerce business doesn’t have a physical place to visit.

No physical space means that the company can’t take credit cards in person. In these cases, customers share their card info either over the phone or through a secure web form. For the companies that issue them, theft remains higher for this type of sale.

Here’s another problem. An e-commerce business doesn’t have a place people can visit in person.

While a company needs some place to do business, no walk-in location can be a problem. Banks could think that e-commerce companies don’t have community ties and nothing to lose if those places fail.

The low-risk merchant service providers want to avoid risk. These providers may choose not to give a card account to a business that doesn’t have a “stable” place. Low-risk merchant service providers may adopt this attitude even if the e-commerce operation is in someone’s home.

Why Won’t Some Providers Open An Account?

E-commerce companies of all sizes exist. A low-risk merchant service provider can choose not to give accounts to high-risk e-commerce businesses. This decision affects e-commerce company owners in many ways, such as the following:

  • Since they can’t process credit card sales on their own, companies need to use high-cost, third-party card processors.
  • Sometimes, customers won’t buy products if they can’t use their credit cards through a website.
  • Business growth stalls.
  • Profits decrease from lower sales and fewer customers buying products.

Theft also plays a role in the decision-making process to open a merchant services account with an e-commerce business.

The ongoing switch to EMV chip cards means that thieves can’t get to credit card number databases and make real clones of cards to use in stores. Chip cards have a microprocessor in them that uses a verification system readable only between a store terminal and card-issuing bank.

Since it’s impossible to use an EMV card reader for sales without a physical card being present, the risk of theft is high. In fact, card issuers and processors expect online credit card theft to become higher with the switch to the EMV cards.

Why Is Theft a Major Concern?

Processing a credit card online uses two methods: address verification and card value verification. The latter refers to the three numbers on the back of the card. Credit card processors have used these methods for e-commerce sales for some time, but these sales are not as secure as before.

E-commerce businesses have little in the way of making sure that a card isn’t stolen. The only option is to use theft detection systems at the card processing and issuing bank levels. E-commerce companies may have a harder time getting a merchant services account once the switch to EMV cards takes place.

Low-risk merchant account providers don’t want to lose money. They take measures that lower their exposure to bad credit cards. These providers sometimes make room for the occasional spike in high-volume sales. However, more chargebacks than normal or an increase in the average ticket price will not always be allowed.

If the provider feels that too many rises in certain types of activity exist, that provider can close the account without warning. As a result, a company will be unable to accept credit cards and will lose its reputation as a responsible business.

Don’t Let Risks Stop Your Decision to Open an Account

Opening a merchant services account to accept credit cards is still worth your effort. But what about the e-commerce company owners who can’t use low-risk merchant service providers for an account? High-risk merchant account servicers can step in to fill the void.

High Risk Pay offers merchant accounts to the e-commerce businesses that can’t open a credit card processing account with a low-risk provider.

A high-risk merchant account can provide the same types of services as low-risk providers. But, there’s no stress of account closure. High Risk Pay welcomes customers who may not be able to open an account with other merchant account servicers.

High-risk merchant account servicers like High Risk Pay have advantages. They are familiar with and accept risks that come with e-commerce business operations. We at High Risk Pay understand that chargebacks and theft are a part of doing business in an online environment. We also recognize that many sales get processed and cleared without any trouble. Not every customer that buys something from your business online is out to rip you off.

In short, High Risk Pay is in the business of helping our e-commerce customers to expand and grow their virtual companies. We help business owners become able to accept credit cards for online sales. How do we do this? High Risk Pay uses secure detection systems to stop theft and criminals before they can cause any harm to business.

If you own an e-commerce business and have been turned down when you applied for a merchant account, don’t give up. Contact us to find out how we can help you open a high-risk merchant account for your e-commerce business. Our rates are competitive, and approvals for new accounts can be made in a short time. We like to work directly with our customers to get them the products and support they need to run their e-commerce businesses securely and profitably.

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Read More About eCommerce Merchant Accounts