Ticket brokers can make a lot of money if they choose the right events and market tickets efficiently. However, it’s necessary to get a ticket sales license and sign up for a merchant account to process payments for this type of business. This is a tricky process because ticket sales fit into the high-risk category. Take a look at what you need to know about signing up for a high-risk merchant account to avoid high fees and get the services you need.
All businesses that want to accept payment other than cash for products and services need a merchant account to process the payment. Most ticket sales happen on the internet, which means cash isn’t an option. Therefore, it’s important to use a payment processor with a reputable background so that your customers feel safe buying tickets through you. A good merchant account provider can help you save time and increase sales.
Before signing up for a merchant account, be sure to research the services and products offered by each provider to make sure that you will have access to everything you need to run your business. Some things to look at include online shopping cart integration, marketing tools, and even credit card processing terminals for offline sales. Additionally, look for quality customer service and transparent pricing. Not all merchant account providers are the same, and credit card processing rates can vary dramatically. Don’t make the decision hastily because it will negatively affect the profits of your business.
If you sell tickets as a broker, you’ve probably had difficulty finding a payment processing company that doesn’t charge exorbitant rates because of the high-risk nature of your business. The main reason ticket sales are considered high-risk is because of the high potential for fraud and chargebacks. Many payment processing companies are unwilling to work with businesses in a high-risk industry, and if they do, they charge very high rates to do so.
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Another factor that contributes to the high-risk nature of ticket sales is the fact that ticket brokers have historically been associated with criminals. This is because scalping ticket sales are illegal in most areas. However, it’s perfectly legal to sell tickets as an enterprise as long as you are licensed. Every state has different laws that pertain to ticket brokering, and you need to check the regulations in your locale before selling tickets to events. Then, choose a high-risk merchant account to help you carry out the transactions.
Even if ticket sales didn’t come with a shady reputation, it would still fit into the high-risk category of merchant accounts. This is because ticket sales are based on a “future fulfillment” model, which means there is an extended period between the time payment is made to when the product is delivered. This comes with inherent risks for chargebacks. So, regardless of whether ticket sales is shady or not, it would fit into the high-risk category, and you would need to seek out a high-risk merchant account provider for this type of business.
Even though ticket brokers almost always need a high-risk merchant account, there are things you can do to get a better discount rate from your provider. You need to show a real processing history and bank account statements that show the stability and consistency of your business. The more you can do to show little risk, the better chance you’ll have at getting lower credit card processing rates.
One of the best high-risk merchant account providers is HighRiskPay.com. Our company has been in business since 1997 and deals with a high volume of high-risk merchants. Additionally, we offer a chargeback prevention program as a bonus service for signing up for a merchant account. Our chargeback prevention program helps your business reduce fraud and chargebacks, and it also contributes to recover lost sales. This is a useful service for ticket brokers like yourself.
There is no application nor any setup fees to sign up for a high-risk merchant account with HighRiskPay.com. Plus, there is a 95 percent approval rate and a 24- to 48-hour approval turnaround. It doesn’t matter if you have international interests, a low credit score, or bankruptcy and foreclosure on your record — we may still be able to help. We already provide services to ticket brokers, and we have extensive experience in this high-risk industry. Make sure to include HighRiskPay.com as a merchant account provider to your list when making a decision.
Ticket sales transactions typically happen through an online gateway with a credit card. Therefore, if you plan to sell tickets on the internet, it’s imperative that you choose a right merchant account provider, like HighRiskPay.com, with real-time processing. You don’t want to have any delays because that can affect your customers’ experience. For instance, your customers want to be able to select their seats, but this isn’t possible unless you offer real-time processing. Ticket brokers need a secure payment gateway that is fast and reliable so that customers do not experience any delays when they buy their tickets online.
One important thing to know about high-risk merchant accounts is that credit card processing rates will most likely be higher than the price you are originally quoted. Different categories determine the rate of each transaction. The harder your merchant account provider has to work to ensure payment, the higher your rate will be. For instance, if a customer provides a billing address that does not match the address on the credit card, it takes more effort to process the transaction. Ask about the rating scale and how complicated transactions affect your fees.
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Most banks and merchant account providers have long waiting periods and hoops you must go through before being approved. Plus, most high-risk merchant account providers charge higher rates and enforce higher deposit limits. If you want to avoid the hassle, look into the products and services offered by HighRiskPay.com. With us as your merchant account provider, it’s possible to minimize the high fees associated with your ticket sales business.