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TIPS FOR AVOIDING YOUR HIGH RISK MERCHANT ACCOUNT TO BE FROZEN

There are several conditions which are not read by you before you sign the contract with your “High Risk Merchant Account” Provider. Also, there are several things that your provider will not tell you. This happens not because they don’t want to tell but because they wouldn’t discuss such issues with you unless you have experienced them. One of the best examples of such an issue is the problem of “Frozen Accounts” with your high risk merchant account.

If you own a “High Risk Merchant Account” and have not made an effort to research about freezing of you account then you are in for a big surprise. If your “High risk merchant account” is frozen, then your present sales and future business will be under terrible risk. There are 2 important reasons for that which is:

1)    You will not be able to process credit cards on the internet

2)    You will not be able to get another “High risk merchant account” from another provider.

Therefore, you should never allow it to happen and it will not happen if you take some simple preventive measures.

Volume Limit Excess

A merchant will think that he can make up very easily for going over his processing limits or the average ticket prize. Unfortunately, there isn’t. The Underwriters and the provider are there to do business and are very realistic. If your high risk business is making more money then it is very likely that it will incur more number of charge backs. In case of such an event, the underwriter is the one who is liable. Therefore, a small mistake spelled a lot of trouble for your provider.

This can be prevented by signing up with an account provider who is more flexible with the monthly limit of processing volume. This simply means that when the size of your ticket grows, you should be able to negotiate for the discount fees and other fees’.

Service Flexibility/Niche Product

The second most common issue which gets you into trouble with your provider is the service or niche product that is offered by you.

Refunds

Is providing refunds for your customers harmful to your business? It may surely hurt your business but you also have to keep up a good quality reputation. Therefore, you should provide refund for your dissatisfied customers else, they will spread ill words regarding your business. You also don’t want them commit fraud against you.

Backup Account

A Few business owners have 2 merchant accounts because of the high rates of discount. But the advantages are more than that. If your business will collapse without a functioning merchant account then having 2 will save a lot of money as if one goes down then you can immediately put the other one up. Having the backup account might be very tricky but servers its purpose well.

Freezing of your high risk merchant account is terrible for your company. Therefore, find the issues and try to cancel them out. Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.