When it comes to online sales, people often don’t read between the lines. This is true of high risk merchant accounts too. As a high risk merchant, there are several important things that best high risk merchant account the merchant account providers do not share with you. They’d rather you experience the issues first and then discuss it with them. Once such issue is the freezing of your account!
Frozen High Risk Merchant Accounts
Merchant accounts can be frozen due to many reasons and oftentimes, without prior notice. So if you didn’t do proper research before or after getting your account, it could spell BIG trouble! Basically, when merchant accounts are frozen, they can bring heavy losses to your business. This is because you lose the convenience of processing credit card payments online; also, you won’t be able to apply for another account. So it’s in your best interest to ensure that you don’t allow your merchant account to get frozen. There are ways in which you can prevent this.
Ways To Prevent Frozen Merchant Accounts
Processing Limits: the high risk merchant account providers and underwriters are a realistic lot. So, if you make more profit than you may have mentioned during the time your application was being processed, you may incur chargebacks. In such a scenario, it’s your underwriter who’ll have to pay the provider bank to fulfill the losses. So how do you ensure that you don’t face such a situation? Look for a merchant account provider that allows you flexibility with total money you process on a monthly basis so that you can negotiate an adjustment on the fees and discounted rates.
Niche Service/Product: Sometimes, niche product/service that you deal in may lead to a frozen merchant account. The simplest way to prevent it is by defining your services/products in a broad manner. Ex. Pick beauty instead of make up. This allows you to expand your range of services/products in future without upsetting the provider.
Refunds: Refunds have quite often been the main stay of businesses. It ensures a healthy reputation, though at a cost (no pun intended!) So if you want dissatisfied customers to buy again from you, allow them refunds.
It’s a fact that a frozen accounts can spell doom for businesses, particularly those in the high risk sector. So remember to read the fine print and seek clarifications from your merchant account provider!