Choosing the right high risk payment processing company for organizations operating high risk businesses such as online gaming, adult entertainment, and travel is critical. These industries face unique challenges, such as:
- Higher level fraud
- Regulatory compliance requirements
- Chargebacks
Without a reliable high-risk payment processor, your business can face losses, reputation damage, and legal penalties.
Key Factors to Consider When Choosing a High Risk Payment Processing Company
Your business has different needs from others, and you need to choose a vendor that’s the best fit. The following is a breakdown of key factors when choosing a high risk payment processing company.
Industry experience and reputation
The most critical factor to consider when selecting a high risk merchant company is their expertise, industry experience, and reputation. Your high risk business faces unique challenges, such as fraud and chargeback, which require specialized knowledge and tools to manage effectively.
When evaluating a payment solution, consider the company’s experience in your industry, its track record in mitigating risk, and its understanding of regulatory compliance. A high risk payment processing company with a deep understanding of your industry’s challenges and regulations can help you mitigate risk and ensure compliance with minimum disruptions to your operations.
You can also consider a payment processor that offers customized solutions tailored to your needs.
Range of payment solutions offered
Evaluate what payment method a payment processing company supports before settling on one. For instance, if you operate an ecommerce business, you’ll likely want to accept the following:
- Credit cards
- Debit cards
- Digital wallets
Ensure the company you choose supports the payment method your customers prefer. Some merchant accounts may also offer alternative payment methods like bank transfers or ACH payments, which can be excellent for certain types of high risk businesses.
Security and fraud prevention measures
Security is critical because high risk businesses are more vulnerable to fraud and chargebacks. Choose a company that offers:
- Fraud detection and prevention
- Chargeback protection
- PCI compliance
PCI compliance is critical if your business accepts credit card payments because it ensures your business follows best practices for protecting customer data.
Pricing and fees
Pricing and fees matter when choosing a high risk merchant account. Expect higher fees and transaction costs than low-risk businesses because of the increased risk profile. However, ensure that the dees and cost are reasonable and competitive within your industry.
Evaluate the following prices and fees:
- Transaction fees
- Processing fees
- Chargeback fees
- Other associated fees with the service
Choose a payment processor with transparent pricing and clear communication about their fees and costs.
Customer support and responsiveness
Customer support is critical when choosing a payment solution. When a payment processing issue arises, you can’t afford delays in resolving such issues. You want a company with responsive customer support that can provide prompt and reliable support when needed.
Examine the customer support channels such as:
- Phone
- Live chat
- SMS
Besides channels, consider support availability. Check hours of operation and response time.
The best candidate should offer 24/7 support and have a team of experienced professionals who can solve nearly all issues that arise.
Evaluating High-Risk Payment Processing Companies
Evaluating high risk payment processing companies can be an excruciating task. However, you should find a provider that meets your needs and helps you manage the risk associated with your business.
To evaluate a high risk payment processing company, you should:
Research Online Reviews and Testimonials
One of the best ways to understand a payment processing company’s reputation is to read online reviews and testimonials from other businesses in your industry. Look for reviews on third-party sites like Trustpilot, Better Business Bureau, and the company’s website.
Pay attention to what other businesses say about the company’s reliability, customer service, and overall performance.
Seek Recommendations from Industry Peers
Another way to evaluate high risk payment processing companies is to seek recommendations from other businesses in your industry. Ask other business owners, industry associations, or trade groups for recommendations.
Interviewing Potential Payment Processing Partners
After interviewing potential payment processing partners, you can interview each to get a sense of their experience, services, and fees. During the interview, ask about the company’s underwriting process, security measures, customer support policies, and extra services they offer.
Ask for references and follow up with those references to get an idea of what it’s like to work with the provider.
Questions to Ask High Risk Payment Processing Companies
There are plenty of questions you can ask a high risk payments processing company, but let’s focus on the five most important ones you can consider.
How do you mitigate chargeback risks?
Chargebacks occur when a customer disputes a transaction and the payment is refunded. When abused, your business can face significant losses.
The payment processing company should elaborate on how effective its chargeback prevention system is and what management strategy they have in place. The management practices might include:
- Monitoring transactions for suspicious activity
- Providing chargeback alerts and notifications
- Offering chargeback dispute resolution services
What payment methods and currencies do you support?
You should know the payment methods and currencies a high-risk payment processing company supports before signing up with them. Find a provider that supports a wide range of payment methods, including:
- Credit cards
- E-wallets
- Debit cards
- ACH transfers
The provider must also allow currencies that are relevant to your business. Ensure the provider’s payment processing capabilities are compatible with your point-of-sale system or e-commerce platform.
How do you handle underwriting and risk assessment?
The perfect high risk assessment processing company should have robust underwriting and risk assessment processes to help mitigate the risk of fraudulent transactions. Ask potential providers about their underwriting process, which typically involves gathering information about your business, including:
- Financial systems
- Credit history
- Compliance with regulations
Ask about the company’s risk assessment processes, including monitoring transactions for suspicious activity and using machine learning and artificial intelligence to detect fraud.
What is your application and onboarding process?
You must understand the application and onboarding process of a high risk payment processing company to start working with it. Check for a provider with a streamlined, user-friendly application process that can onboard your business quickly and efficiently.
Ask about any required documentation or information, such as financial statements, merchant accounts, or regulatory compliance.
Can you provide references from other clients in my industry?
To understand how a high risk payment processing company performs its practices, ask them for references from other clients in your industry. That way, you can better understand the provider’s experience and expertise in your specific market.
Follow up with the references and ask about their experience working with the provider, including their customer service, reliability, and any issues they encountered.
Your Business Needs a Merchant Account to Accept Credit and Debit Cards
Your business requires a high-risk merchant account if you want to accept card payments but face a greater risk of fraud or chargebacks. The account is a necessary intermediary for drawing funds between your customer’s bank accounts and depositing those funds into your business bank account.
FLEX Payment Solutions specializes in payment processing solutions for the high risk industry. Contact us for more information or a free quote for a seamless, secure, and compliant payment experience.
