In 2010, e-commerce sales totaled $165 billion, which was nearly 15 percent higher than e-commerce sales in 2009, according to the U.S. Department of Commerce. Internet sales are here to stay, so high-risk businesses must be able to accept credit cards online if they want a portion of the booming e-commerce pie.
The economic turmoil that followed the 2008 Wall Street crash forced banks and other lenders to become more selective in choosing businesses they will back, so more companies have had to turn to high-risk merchant accounts for financial support. Businesses are considered to be high risk for a variety of reasons, listed here:
Companies with industry-average sales are actually considered to be the safest investments for banks. Companies with higher volume transactions are at the greatest risk for fraud, while conversely, companies with lower volume sales might not be able to afford to implement expensive, but necessary, fraud screening practices. Seasonal businesses are also considered high risk because banks consider companies with consistent sales year-round to be more stable.
Companies that provide a service to high risk clientele, including gambling, dating, detective and pharmaceutical services, are considered high risk because clients may not be willing to provide accurate identification information and cannot be tracked if they avoid payment. In short, these industries are more likely to produce fraudulent transactions.
Banks are also hesitant to provide financial backing to businesses or business owners with poor or unproven credit histories. Any questionable aspect of a business or business owner’s financial history, such as prior instances of bankruptcy or fraud, will likely require a high-risk merchant account to be sought out.
Once a company determines it requires a high-risk merchant account, it must perfect its customer service model. In an era driven by social media interactions, the consumer-business relationship is more direct than ever before.
Businesses that have opened a new merchant account for their retail website may soon benefit from a recent Federal Reserve Board ruling that will affect the transaction fees they pay to debit card issuers..
A strong payment platform is key as the holiday season approaches. In a tight economy, consumers may want to spread their holiday spending out over the course of a few months, which means merchants will need to have their websites optimized sooner rather than later.
The act of swiping a credit card in the checkout line of a store could soon be replaced by the act of waving a smartphone in front of a sensor, which may have greater implications on mobile commerce and internet retailers that provide..
Customers are often on the lookout for bargains, price breaks or anything that convinces them that they are obtaining a great value for a service or product. That’s true whether they are shopping in a brick-and-mortar outlet or at a retail website.
Owners of international, high risk or emerging businesses that require merchant accounts to accept credit cards online have many factors to consider when choosing a reliable merchant service provider.
Online merchants face more risk than ever. With the continued evolution of mobile payments and emerging technology, fraudsters are finding new vulnerabilities to exploit and new ways to steal money from your bottom line. Unfortunately, there’s also another culprit lurking around, often unknowingly denting your bottom line – the overuse of fraud tools.
With more individuals becoming comfortable with the concept of online dating, the industry has experienced a boom in terms of use and profitability. As a result, companies that provide this service need to ensure they’re making use of the most beneficial tools and strategies, including payment processors backed by high-risk merchant accounts.
Once a company determines it requires a high-risk merchant account, it must perfect its customer service model. In an era driven by social media interactions, the consumer-business relationship is more direct than ever before.
Established internet businesses may eventually find that the opportunity is ripe for them to expand to different international markets. This can be a critical step in the progression of any business, and entrepreneurs need to ensure they’re approaching this milestone with caution.
A new study on the buying activity of consumers using tablets may encourage more businesses to develop a mobile payment strategy that accommodates the devices. Arranging such a payment service in conjunction with offshore merchant accounts may allow companies to tap into a profitable market at a lower cost.
With the limited supply of US merchant banks that want this business and the increase in affiliate and friendly fraud targeted towards the dating industry, it is virtually impossible to keep a dating website live long-term..
Whether they are working with domestic-based merchant accounts or offshore merchant accounts, e-commerce businesses need to keep on top of the money they spend to maintain these financial tools…
