DirectPayNet

Category: PAYMENT PROCESSING

  • AMEX Payment Processing For High-Risk Business Is Possible. Why you need it.

    AMEX Payment Processing For High-Risk Business Is Possible. Why you need it.

    AMEX payment processing is poorly understood in Europe by e-commerce business owners. This is especially true for merchants in high-risk industry categories.

    Visa and MasterCard often get mentioned in all of the conversations. However, as a merchant in Europe, accepting AMEX is a little more complex.

    Getting this type of payment option can open up a whole new customer base and increase conversions. But it’s important to know how to implement this card type to your checkout, if you are permitted.

    As a merchant, American Express is one of the card networks to explore if you cater to US and Canadian buyers. However, most merchants are unsure of whether or not to accept AMEX cards. For some, it’s a matter of pricing. For others, it’s the hoops to jump through to get approval for high-risk credit card processing.

    However, the amazing payment processing solutions that come with accepting AMEX cards make it an endeavor worth pursuing. We will discuss merchant pricing for AMEX cards, how users in Canada and Europe can use this platform, and also prevent a chargeback on high-risk payments.

    All you need to know about AMEX merchant pricing

    American Express is something of a mystery when it comes to credit card payment processing. Unlike Mastercard and Visa, it’s not an open network. In other words, AMEX is the only entity that can issue its cards and allow for merchant payment options.

    Due to this limit on high-risk credit card processing, they have a lot more control over how much merchants pay to accept its cards. There are no definitive figures anywhere, but this is an assessment of the landscape of fees Amex charges for different categories:

    Lodging Payments (B&Bs, Hotels)

      • under $100: 2.25% + $0.10
      • $100-$1,000: 2.6% + $0.10
      • above $1,000: 3% + $0.10

    General Retail Payments

      • under $75: 1.6% + $0.10
      • $75-$1,000: 1.95% + $0.10
      • above $1,000: 2.4% + $0.10

    Other payments that merchants have to worry about include:

      • Network fee (0.15%)
      • CNP surcharge (0.30%)
      • Cross-border fee (0.40%
      • Voice authorization fee (0.65%)

     

    AMEX vs. Visa and Mastercard

    In terms of pricing, Visa and MasterCard seem like the more favorable option. However, it is also key to factor in the amount of US-based consumers that use AMEX. The American Express Card is the most popular credit card in 23 countries, including the US and UK.

    Therefore, for merchants in Canada and Europe, accepting AMEX cards for high-risk credit card processing can be a huge plus. In the same vein, the risk of chargeback and fraud is a genuine threat. In 2018, the US got the crown for being the country most prone to credit card frauds.

    Luckily, it’s possible to avoid scams and chargebacks on your merchant account. At DirectPayNet, we’re knowledgeable about an abundance of risk management tools, risk navigation techniques, and automated fraud detection resources. More importantly, this is efficient for avoiding chargebacks, refunds, and frauds.

    Contact DirectPayNet to get guidance on and set up with seamless AMEX transactions as a merchant.

     

    Common misconceptions about processing AMEX orders

    • Amex is not popular among consumers: This isn’t true. In fact, there are over 150 million AMEX users. More importantly, they spend 50% more compared to other cardholders.
    • AMEX doesn’t care for merchants: Tools like AmexOptBlue offer next-day deposits for all card transactions. This applies to merchants in Canada and Europe.
    • Cost of accepting AMEX is too high: Interchangeable rates depending on brands, as well as the absence of ancillary fees, can make it a bargain. Also, the OptBlue program now offered by most payment processors, gives merchants more reasonable fees. If you’re applying for Visa and MasterCard merchant account, the AMEX OptBlue program allows you to add it with no extra application making it simple and quick to accept AMEX.

     

    How to get approved

    As a merchant, there are two ways to get AMEX payment processing for business. The first is to go through a merchant service or payment provider with the OptBlue program while the second is to go directly through the AMEX card network.

    The first option through OptBlue is the better one in terms of merchant pricing. AMEX offers these payment providers wholesale rates so you could end up paying the same price to accept AMEX as you are for accepting Visa and MasterCard. Consequently, the aforementioned payment providers offer high-risk American Express card processing as a part of their services. Depending on the brand, it’s possible to find a great deal that works for business. Note that this works best for companies operating in the US.

    Going directly to American Express is an excellent option for larger businesses in Europe and Canada. Depending on the volume of transactions, it’s possible to get wholesale pricing that favors the cost of doing business. Additionally, even with a direct AMEX agreement, it’s possible to use the same payment gateway you use for accepting Visa and MasterCard.

     

    Why high-risk merchants in the EU and Canada avoid AMEX

    The answer to this question is a simple one — merchants want to save more money. American Express depends majorly on merchants for revenue. As a result, it’s not uncommon for foreign-based companies to pay more to allow for payments with AMEX cards. Before the OptBlue program, AMEX would sometimes cost merchants double the cost of accepting Visa or MasterCard.

    In the same vein, most high-risk merchants want to avoid having to go through the stress of fighting chargeback disputes. AMEX heavily favors the end user, so the chargeback burden always falls on the merchant who oftentimes loses the dispute even if it is not their fault. Also, for Canadian based merchants, they may have to pay more due to international cross-border fees. This is a factor that most US companies do not have to contend with.

    Finally, it may be impossible for some European-based merchants to process high-risk credit transactions without a US bank. This is a function of location and can be simply remedied by setting up a US office. Below are the requirements for getting one:

    • An incorporated business + valid business license
    • A business bank account for the incorporated company
    • A company owner/director that is also a US resident who can sign documentation and be the contact person for merchant account and bank account related inquiries
    • A physical address within the US (It can be a simple setup, nothing too complicated)
    • Pre-approval for a merchant account

    How to get approved for AMEX processing

    Many payment providers are weary to offer new businesses high-risk credit card processing services. The simplest way to get started in accepting AMEX is to ask your current payment processor to add this ability on your merchant account. If you’re applying for a new account, make sure your payment processor offers the OptBlue program. This way you can get started on accepting all cards without extra paperwork or delays.

    As to whether or not the business is a high-risk one, that is up to guidelines provided by AMEX. However, AMEX payment processing is not available for:

    • Adult entertainment businesses
    • Loan collection agencies
    • Gold, cash and silver collection agencies
    • Gambling businesses

    How to fight fraudulent AMEX transactions

    One of the primary reasons most merchants avoid getting AMEX payments is the risk of fraud. These simple signs can be an indicator of a credit card scam and help prevent them.

    • Ordering too many items, especially when it’s the same one
    • Orders made with anonymous email domains
    • Payments processed in substantially large dollar amounts
    • Delivery to countries with a history of fraudulent claims
    • First-time shoppers
    • High-volume purchases without regard for size, features, colors, and pricing
    • High-volume purchases made just before closing time
    • Attempts to rush an order

     

    How to dispute an AMEX chargeback

    With a chargeback, a merchant has about 20 days to respond to a “Request for Information” letter from AMEX. Typically, they would have to provide evidence (documentation) that the cardholder holds no legal claim to a chargeback.

    This is close to the way both VISA and Mastercard operate. However, for Mastercard, cardholders have more time to dispute a chargeback (120 days).

     

    Contact DirectPayNet for additional help

    AMEX payment processing is a great e-commerce tool for companies in Europe and North America. And it’s because of the opportunities it offers to carve a niche in a large market (The US).

    Worried about chargebacks, fraud and refunds? DirectPayNet offers a broad range of services to help merchants around the world navigate risk. For example, we can help you detect fraud and assist with offshore compliance. Additionally, we can assist in reducing the chargeback as well as refund rates.

    Email us to kickstart your payment gateway. Send us a message here.

  • Merchant Accounts Will Take Your Consulting Business To The Next Level

    Merchant Accounts Will Take Your Consulting Business To The Next Level

    Merchant accounts are highly sought after by freelancers and consultants. But, many contact us because they unsure of how to secure a flexible payment solution. Some examples of consultancy services we’ve encountered include online legal services, finance experts, IT consultants and many others. They all want to sell their expertise virtually, but aren’t satisfied by PayPal or Stripe.

    The rise of the gig economy continues unabated. In the US alone, there are 57 million freelancers. But these freelance positions are much more than driving for Uber. For example, high-level executives are taking the leap from high-paid positions. Now they often deliver their expertise on a freelance basis. They assemble packages and subscriptions and use payment processing directly on their website or portal. And, the products range from online education courses to virtual coaching billed at a high price per hour. Merchant services for consultants help by offering a greater range of payment options to clients. They allow you to take a deposit to begin providing services immediately instead of waiting for a wire or check. Also, you see more transaction-level data that will help you assess your business for scaling in the future.

    This article will outline why these components are so critical. So, if you’re a freelancer or business consultant, listen up! What we’re about to tell you could be a total game-changer.

     

    Why consultants and freelancers need merchant services

    As mentioned, freelancing and consultancy are broad in nature. Many of those contained within this industry run fully-fledged one-person businesses. This is particularly the case for companies that leverage technology. Today it’s possible to deliver services at a fraction of the cost of traditionally-formed businesses.

    For example, domestic and offshore company formation is a fundamental service that many companies need. It’s also a service that one specialized consultant can deliver. All an individual needs are a dozen clients a month, and a business formation service provider is born.

    The same is true of web development consultants. Graphic design freelancers and online bookkeepers also fit this model. What may start out as a side hustle, may escalate into a lucrative one-person business. But those who manage to scale need to diversify their payment options for many reasons.

     

    The more payment methods offered, the better

    Firstly, diversifying payment processing allows a freelancer or consultant to increase their client base. This is achieved by attracting business from those who only have a few methods of payment available to them. Next, receivables from those clients already on the books will increase. That’s because faster and easier payment methods such as ACH and e-check are available.

    Furthermore, the bottom line will increase. Freelancers can shift away from low-risk processing options such as PayPal, by securing individual merchant accounts. Enabling a more robust payment channel, along with tighter fraud and chargeback controls as well as competitive rates.

    Freelance copywriters selling content marketing packages can benefit. So can consultants with front-facing clients like IT specialists. Opt for processing from a less rigid payment supplier that is quick to add merchants to MATCH-list should a misunderstanding arise. Providers familiar with high-risk orders and business models will be more tolerant. You can sell more in a single transaction (like $1000 instead of $150). The higher the ticket the less likely issues such as freezing funds or account closures will arise in merchant accounts compared to if you are using services like PayPal or Stripe. Higher transactions with the right traffic and volume via a high-risk provider can see increases like from a $15,000 to $50,000 cap per month.

    What freelancers and consultants should transition to merchant accounts

    What freelancers and consultants should do to transition to merchant accounts

    Obtaining new payment processing options requires some work upfront. But the pros outweigh the cons. Freelancers looking to add new payment methods will need at least A to C, but having all of the following can be a big benefit:

    A. Incorporated business (preferably after being pre-approved for a merchant account)

    B. Business bank account with a positive balance

    C. A local director who is a resident and authorized signer of the company

    D. Processing statements for the business (3 to 6 months) or business bank statements showing some trade and cashflow

    E. A working website with terms and conditions, and easily identifiable contact information displayed

    F. Hard copies of service agreements with clients and other pertinent business contracts (such as licensing agreements)

    When securing merchant accounts or merchant services, a whole host of new payment processing options become available. But what are they exactly?

     

    What payment options are available to freelance and consultancy business owners?

    As a high-risk merchant, securing multiple payment options helps to build up processing history. Those with several months’ worth of trouble-free history can apply for sales limit increases and scale their business. When a merchant selling high-ticket consultancy services begins processing with PayPal, the high transaction amounts may result in unnecessary scrutiny and slow growth.

    With that in mind what payment processing options are available to freelance business owners and consultants?

     

    1. Merchant Account

    Merchant accounts gives freelancers and consultants the opportunity to accept debit and credit cards from clients online. This method allows both full and partial payments (like deposits or installments). This payment method also gives business owners access to transaction-level data. We know there are a lot of hosted all-in-one business solution platforms to help you sell courses and virtual services. You may not be collecting all your real-time data on customers and orders. With your own checkout page and a shopping cart or CRM you see more information on the back end. You can also connect to a merchant account that will provide even more transaction details. This includes more in-depth details on fraud. Business owners can tightly control fraudulent transactions. Stopping potential chargeback situations in their tracks.

     

    2. Virtual Terminals (MOTO)

    Virtual terminals allow merchants to process mail order/telephone order (MOTO) payments. Clients provide their card details and the merchant takes the pre-agreed amount by entering those details into the virtual terminal. This offers another way for clients to make a card-not-present (CNP) transaction. It also allows you to capture a deposit quickly so you can start providing services without delay or worry that you won’t get paid!

     

    3. Automated Clearing House and e-Check Processing

    Not all clients have a business debit or credit card. They also may not feel like using cards to pay for a service. As a result, many high-risk merchants are turning to adding ACH and e-check payments. All merchants need is a client’s bank account details, which they input securely into an online order form at checkout. A client can then confirm the amount and authorize payment. Alternatively, they can issue an e-check. This shows a virtual display of the check and the payable amount. It then uses the ACH network to arrive in the merchant’s account.

    By offering multiple payment options to clients, high-risk merchants can increase conversions. They can also lower risks of fraud, and stay in control of troublesome chargebacks.

     

    Did you know ACH and e-check processing doesn’t just benefit freelance and consulting businesses? Check out this list of high-risk business verticals where these payments are helping merchants to scale!

     

    Best practices for freelancers and consultants

    New payment processing options help to drive up profits. However, high-risk merchants need to take effective measures to protect themselves. Threats such as fraud and chargebacks can derail company growth. In some cases, resulting in merchant account terminations.

    Here’s a list of best practices when it comes to taking payments from clients:

    Split payments for high-ticket items:

    High prices represent a high risk to acquiring banks. Lower those risk levels by splitting up large payments into instalments. For example, with a large consulting project, charging a 50% up-front deposit and 50% upon delivery may help to reduce the chance of a chargeback.

     

    Keep detailed records:

    Detailed record-keeping makes all the difference when it comes to merchant account applications. Signed service agreements, records of all invoices, and clear terms and conditions of sale will help in your bid to secure additional processing.

     

    Make use of anti-fraud tools:

    It’s in the interest of all payment providers to keep fraud levels to a minimum. Thus, those institutions involved often provide high-risk merchants with high-level anti-fraud technology. Making use of those tools will lower fraud. It will also ensure you retain the ability process card-not-present (CNP) payments. Maintain a negative database of clients who have previously filed a chargeback or a refund for no reason. Add simple velocity checks to minimize the number of bad transactions that a customer can potentially attempt within your merchant account.

     

    Take manual measures for MOTO payments:

    MOTO payments can bypass sophisticated anti-fraud technology. Thus, you need to take your own precautions. When taking payments over the phone, manually enter client information into the Address Verification Service (AVS) fields. This way you can confirm they are who they say they are. Another action is to take the CVV/CV2 number from the card. In fact, make these fields of information mandatory for most MOTO and non-MOTO transactions. Those with stolen details are unlikely to have this information. If they have it on hand, they are much more likely to be in physical possession of the card. Reducing fraud risks.

     

    Review transactions in your merchant account portal:

    A very effective method to combat fraud is to periodically review transaction logs. Sometimes human intervention can spot a bad trend in your transactions. By logging into your payment portal you can flag suspicious activity. Not only can you report suspected fraud, but you can spot payments that may need refunding before they turn into chargebacks.

     

    Provide clear and easy-to-follow cancellation policies:

    This is especially true for PR, social media, marketing and similar consultants working on a subscription/retainer basis. Impatient clients who no longer need your services will contact their card issuer to initiate a chargeback. Especially if they can’t easily find out how to cancel. Avoid this fate by informing and educating your customer with clear refund/cancellation policies. Provide a phone number, email and website with cancellation info to ensure your customers can easily reach out to you.

     

    This list of best practices is by no means exhaustive. However, if you follow these tips you will drastically increase your chances of retaining your merchant services. Contact us and we can help you put measures in place to fraud proof your business.

     

    Take your freelance or consulting business to the next level by diversifying payments

    Some freelancers and consultants scale quickly in the initial phase of their business. But they soon plateau when they hit limits on their basic payment capabilities. By opting for merchant services business owners can continue to scale. Better still, they can increase conversions and reduce fraud risks. Consultants that fail to take advantage of these payment processing capabilities will be left behind by their counterparts.

    When you run a “one-man-band” it can be difficult to understand your options. Which is why you need expert advice to reach the next level. Here at DirectPayNet, we specialize in securing merchant services for high-risk merchants, including freelancers and consultants of all industry types.

     

    Contact our team to help you secure payment processing options like merchant accounts, ACH, e-check, MOTO and more today.

  • Free Merchant Accounts 101. You Guessed It. It’s Not Free!

    Free Merchant Accounts 101. You Guessed It. It’s Not Free!

    Free merchant accounts sound like a good deal, don’t they? Imagine the thought of receiving merchant account settlements but paying out nothing in return to your provider.

    As an online business owner just starting out and looking for your first merchant account, free is very appealing. You’re looking to reduce costs while you increase access to your customers and vice versa. And perhaps you just want to test the waters and free makes it easier to do that. Or, you realize that your business is classified as high risk. That means you can expect to pay higher fees and rates compared to low-risk merchants. Even fees related to chargeback and fraud ratios are higher. Therefore, you need to identify ways to limit costs as much as possible.
    In circumstances like these, a free merchant account will seem like the best way to go right now.

    But you know that nothing in life is really free. And if you aren’t paying for it now, it’s likely you will pay for it later in some way or form. That free account could cause your business more harm than good. So, do you know the hidden pitfalls of signing up for a free merchant account?

    The 101 on free merchant accounts

    Before you go to Google searching for free merchant accounts, here are a few things you need to know and consider.

    First of all, what is free payment processing? This is one of the first questions you need to ask yourself. You need to check how they define “free merchant account” before you sign on the dotted line.

    Is it a case of no monthly fees? Or maybe they are offering no transaction fees? Is it free (no fees) for a specific period of time or number of transactions per month?

    Some of the things they may offer as free to you include:

    • No application fees
    • No account set-up fee
    • No monthly account maintenance fees
    • No transaction-specific fees

     

    There are so many ways to package a free merchant account. But, not all that glitters will build your business income. And within no-fee policies often are greater issues which we will get into in a bit. But before we do, we want to make it clear that no matter what, you need to read the fine print. Read the entirety of the merchant processing contract before signing. You want to make a decision in the best interest of your business.

    Contact DirectPayNet today. As your payment advocate, we will guide you through the process of reviewing and applying for a merchant account that suits your business and goals. Clear and transparent pricing that we can walk you through so you understand your monthly fees.

     

    Some of the issues with free merchant accounts

    Understanding the issues with a free merchant account starts with knowing the right questions to ask.

    1. What is the length of the contract you’re tied to?

    This is an area you need to assess when you’re looking at getting a free merchant account. Some merchants have a small 3-year contract with automatic renewal. Also, an early termination fee could be included. Do you have issues with your current payment processor? Your contract may force you to remain with them unless you’re willing to pay their cancellation fee.

     

    2. Do you know the rate(s) when you start to pay fees?

    Is the “free” that you’re offered time-sensitive? Will you start paying fees after a few months and will those fees be worth having the free offer in the early months? If you aren’t sure, then you need to compare those rates and what other merchant processors are willing to offer you without free attached to it. A few months with no fees, may amount to hefty monthly transaction fees later on. Many free merchant account providers add surcharges to recover the promotional period they offered you free services.

     

    3. Are you doing business in keeping with your state or country requirements?

    Did you know that there are regulations that limit the types of business or transactions that can incorporate free payment processing? Or where you can pass on the fees to customers? The credit card associations (i.e. Visa and Mastercard) also have acceptable practices that you must adopt as a merchant account holder. If you fail to meet these standards, you could lose your merchant account or even worse get placed on the MATCH-list or added to the Terminated Merchant File (TMF).

     

    4. How will you appear to customers?

    When someone sees your products and services and decides to buy, are you showing them the final price? Take for example you’re offering a service. You price it at USD $135. But your merchant fees can get up to 5%. So, you pass on the cost to the customer for a total of $141.75.

    If your “free payment processor” is passing on the costs to your customers, are your customers aware of this before they get to checkout? If there is no option to pay by cash, in many states, you cannot surcharge a customer for paying by credit card.

    Otherwise, you will either see:

    1. High abandoned cart processing as customers who see one price on your site and another on the payment page will abandon the purchase.
    2. High chargebacks because the final price on their credit or debit card bill is not what they expected.

     

    Are you aware of unavoidable fees?

    There will always be credit card processing transaction dues. Card associations collect fees on each transaction charged. So does your payment service provider. In fact, the latter must collect to keep up technology and provide merchant services. As such, either the merchant must cover the costs or, if the law allows, the merchant can pass the fees on to the consumer. Some of the unavoidable fees of having a merchant account include:

    • Assessment fees: These are card brand fees payable directly to the card associations themselves. You may see them referred to as NABU fees (Network Access and Brand Usage fees). They are standard across processors, non-negotiable, and your payment provider has no control over them.
    • Interchange fees: These are rates (interchange) set and charged by the credit card associations and payable to the issuing bank. (Check out Visa and Mastercard descriptions of and their interchange rates.) This is the percentage charged for each transaction by the card associations (Visa, MasterCard, Discover, etc.)
    • Processing/Transaction fees: These are the most variable costs. They are set by your payment processor. You can be charged a percentage of the transaction, a flat fee (which includes interchange), or both.

    As a newbie to payment processing, you would have realized that setting up a merchant account comes at a cost and time. For example, the acquiring bank invests time performing due diligence on applicants when opening a new account. That means running risk analyses on the financial and legal implications of working with your high-risk business model. This may include running a credit history and score of you and any other director(s) of the company.

     

    So, if you aren’t paying these fees, who is paying them?

    These services that offer zero-fee merchant processing must make money. After all, they are a business too. So, where do they get their income from? If you think about it, the only way they can offer you free is to either: pass on the costs to your customers; or bill you in some other form. Now, consider how many customers you’re losing because you are passing on your card processing fees to them? Or how much money you’re paying in hidden fees?

     

    What’s the catch? And are you willing to pay it?

    Yes, there is always a catch to something free. As the saying goes, if it seems too good to be true then it probably is. So, here are some other issues you could face with a free merchant account.

    • Higher fees per transactions: The free merchant accounts may charge you a fee per transaction with your customers. This fee could very well cost you more in the long run than simply choosing a better account that isn’t “free”.
    • Penalties by credit card companies: Where you’re contracted to a free payment processor, the credit card processors may charge you a higher percentage point on your transactions.
    • Loss of business: Customers may cease doing business with you because they don’t want to pay your fees for you.
    • Limited Cash Flow: Perhaps your free account will cause you cash flow issues. That’s because you may be required to maintain a higher rolling reserve or security balance than other high-risk merchant accounts. The cheaper the fees, the more restrictions and conditions you’ll need to meet.

    So, are you willing to take these risks all because you want a free-on-the-front-end merchant account?

     

    Final Thoughts

    There is a cost to do business. If you aren’t willing to factor in the costs, then you’ll have a hard time staying in business. Running after these so-called free merchant accounts aren’t going to help your business grow. Instead, you need to focus on quality. You should identify merchant service providers that can deliver the type of services that complement your business. If you are a high-risk merchant, a free merchant account will be more problematic. Your payment provider needs to make revenue to cover any liability and risk arising from your merchant account.

    Payment processing is about the experience as well as the final cost. The less friction between your customers and the final buy button, the better. Make your online checkout experience a seamless one – without hidden costs to prospective buyers.

    Let’s talk if you want to ensure that you start off your merchant processing on the right foot. DirectPayNet has helped numerous new merchants just like you secure the right merchant accounts to support their business.

    We can assist in preventing unnecessary fees and terms that strangle your cashflow. Plus, we help you streamline and improve payment processes for both you and your customers.

    Contact DirectPayNet to get a merchant account that builds out that customer-conversion experience.

  • Crush It As A Business Coach With The Right Payment Strategy

    Crush It As A Business Coach With The Right Payment Strategy

    Being a business coach is all the rage these days! From workshops to online courses, business coaches across the world have developed a full suite of in-person and online services.

    But with rapid expansion comes a desire to land clients from overseas. For instance, business coaches based in Europe are looking to enter lucrative markets around the world. But they lack the payment processing capabilities to do so. So, if you’re riding the crest of a business coaching wave at the moment, listen up. We’re going to show you how to go global!

     

    How a top business coach can take advantage of diversification

    There’s no doubt about it. The top business coaches offer a variety of products and services. From startups to struggling entrepreneurs, there’s something for every type of client. Those products are often delivered online or through mobile apps. Some of those apps even handle the payments side of things too. But this is a dangerous practice for coaches looking to scale.

    First of all, you lose control of important metrics such as consumer behavior, fraud and chargebacks. You could end up MATCH-listed or TMF’d without knowledge of just how excessive your risk is. Next, mobile apps are nowhere near sophisticated enough for a professional business coach’s operations.

    For example, you may have had a great start and want to apply for a merchant account. But an acquiring bank isn’t going to accept sales through a mobile app as proof of growth. It’s best to have professional payment processing statements to avoid a declined application. Statements from Stripe or PayPal can be very beneficial but once you begin scaling, these payment solutions make it harder to grow as they have restrictions for industries considered “high-risk” such as business coaching and business opportunities.

    Thus, as you have done with your products and services, you need to diversify your payments. By building up several different processing channels, you can achieve higher sales limits. You will also gain quantifiable processing history. This will come in handy when you’re asked to show this to acquiring banks and other payment providers.

    Business coaches invest serious time into broadening their client acquisition strategies. Journalism, speaking engagements, seminars, vlogging, podcasts, and so on. But these avenues need to be effectively monetized. With respectable merchant account providers, it’s more than possible to achieve that aim.

     

    No business coach should overlook compliance

    Think potential customers are the only ones reading your content? Wrong. Acquiring banks and payment processors take their work seriously. Performing a thorough website and social media assessment is part of assessing the risk of any business. Poor websites and content marketing lead to declined merchant account applications. Here’s what you need to be doing to impress underwriters.

    There’s a reason that some business coaching or business opportunity companies are considered a high-risk industry. Over-promising and under-delivering is a one-way ticket to high volumes of chargebacks. Clients often contact their card-issuing bank when they feel they didn’t get what was promised. To avoid this fate, take a hard look at your sales and marketing content. Is what you are delivering quantifiable? Are you able to under-promise and over-deliver?

    Once you’ve made sure you’re not making false promises, it’s time to ensure you are compliant. Do all your checkout and order pages comply with PCI DSS guidelines? If not, use an approved scanning vendor (ASV) scans and SAQ questionnaires to find out your vulnerabilities. The fines and headaches attached to a data breach aren’t worth risking. Furthermore, merchant account providers will decline your application for compliance failures.

    Undertake a thorough review of your site. Do the consultation packages match the right order pages? Do you have thorough and unambiguous cancellation policies? What about clearly-stated terms and conditions, as well as up-to-date privacy policies? If you operate in foreign markets, do the currencies match up to the locations? These are all website issues you need to rectify if you want to secure better payment processing solutions.

     

    Thinking of setting up a recurring membership model for certain aspects of your business coaching services? Did you know there are 5 must-haves before you can gain merchant account processing for subscription payments? Find out what they are here!

     

    How to take your business coach enterprise global?

    Once a Europe-based business coach has found success in their respective domestic market, the itch to go global can become irresistible. If that’s the case, think carefully about how exactly this aim will be achieved.

    For example, think about how can you expand services from the UK to the rest of Europe. Take the Polish market for example, do you have local knowledge of the country? Can you speak the language and later offer in-person services here?

    Either way, you will need to set up a registered business within the country to secure payment processing services (Europe works as one region so if you have a business registered in the EEA, you have several options for payment providers across the EEA; although to obtain a high-risk merchant account in the US, you will need a company and bank account in the US). Ensuring you accept all the local currencies in all the countries you are accepting orders from will increase your conversions so ensure to work with a payment provider that can help maximize your revenue and sales.

     

    Merchant accounts offer many advantages over other online payment processing methods

    Business coaches often turn to payment aggregators such as Paypal to handle online sales when they launch. Why not? It can be set up within minutes. But the advantage of a quick and easy set up soon wears thin.

    Sometimes fees for these services are extortionate when compared to traditional merchant accounts. Not only that but PayPal can put in an account freeze or even a termination without warning.

    Alternatively, if you’re a sub-merchant of a shared merchant account, this can result in sudden loss of processing capability. Often, it’s not your fault. In general, being a sub-merchant is volatile as is working with some payment aggregators. Other merchants are sharing the same master merchant account. Those other businesses can be high risk (such as adult entertainment or nutraceutical). They are notorious for huge chargeback and fraud-to-sale ratios. This scenario can leave you high and dry through no fault of your own.

    With an individual merchant account, you can control of your own fraud and chargeback ratios. You can also look at transaction-level data in your own merchant portal. Flag any sales that look suspicious before any damage is done. Better still, acquiring bank and payment processors give you access to the latest anti-fraud tools. Protocols like 3DS2 and software like Ethoca and Verifi help keep your ratios in check. You can also create your own checkout page, which will offer a smoother checkout process and help collect all customer data (instead of passing on this valuable information to PayPal or Stripe).

    Lastly, and perhaps most crucially, you can secure processing for high-ticket items. A huge part of being a business coach is delivering one-on-one consultations, private mastermind seminars, and online info products. But these are high-cost and high-risk to payment processors. With your own merchant account locally, and in another country should you ever want to expand globally, you can secure the ability to process these lucrative high-value services. With continued low fraud and chargeback ratios, you can also increase your monthly volume limits as you scale.

     

    Business coaches ready to go global need premium payment processing solutions

    Business coaching is a booming market. Both startups and struggling entrepreneurs are asking for help from experts to achieve their goals. But business coaching outfits need to make smart decisions when it comes to payment processing. While using a payment aggregator or a mobile app may work when first starting out, they are poor long-term choices.

    Individual merchant accounts offer superior control. It’s particularly useful to manage important metrics like transaction approval, fraud and chargeback ratios. They have the ability to be scaled as you scale. Better still, you can finally get the processing you need to launch your high-ticket services. But the benefits don’t end there.

    You can use merchant accounts to launch yourself as a global brand. For those of you in Europe, another merchant account in another country can take you from domestic success to global superstardom. Multiple currencies and languages open up new doors to those willing to take the next step. The question is, are you ready to take it?

    Looking to secure your business coaching legacy? Payment diversification through merchant accounts is critical. DirectPayNet is experienced at securing merchant account services for businesses in high-risk verticals. Email us today so we can help you scale locally and internationally!