Tag: merchant account

Thank Us Later – Your Own Merchant Account Vs. Being An Amazon Seller
In the past 12 months, DirectPayNet has noticed more and more Amazon sellers are opting for a merchant account. The benefits are significant as vendors want independent websites, control over product pricing, bigger profits and an easier time trading in high-risk industries restricted by Amazon. Unfortunately, those that are engaged in high-risk categories (e.g. electronics, dietary supplements, products with sexual themes) can face account bans, restrictions and blocks detrimental to their business.

Today we will provide guidance on how to go from restricted Amazon seller to independent e-commerce merchant. We will offer ways to properly prepare your company for merchant account approval. Additionally, our tips will help you scale your business to the next level with fewer limitations, regardless of how “risky” it might be.

Why is Amazon So Popular?

What’s behind Amazon’s popularity? There’s an easy answer. In 2017, over 1.66 billion people made purchases on Amazon, accounting for $2.3 trillion in spending. The platform is responsible for 80% of the e-retail market growth we are witnessing in the world right now, solidifying it as the number one place for online purchases and sales.

For sellers, Amazon definitely comes with its benefits, including:
- The biggest potential for buyer exposure worldwide
- Fulfillment services (Amazon FBA) that can reduce overhead and can cover all elements of product placing, shipment, etc.
- Product ideas that sellers can adopt without having to invent their own product
However, it’s not always a rosy picture for the Amazon sellers trying to make it in the ever-growing and fiercely competitive field.

Releasing Account Control

To reap the benefits we described above, Amazon essentially requires sellers to give up control over their online shop. It’s a different scenario compared to a personally owned website and secure shopping cart through which you can powerfully influence your eager buyers. As many sources have found, Amazon works as a “Big Brother” that can force sellers to:
- Sell products at a lower price point;
- Compete with other sellers, as well as Amazon itself, making the competition impossible all through the same platform; and
- Shut down their accounts due to an issue that might not have ever been their fault or a misunderstanding.
The above factors are why it’s so important to transition to your own merchant account once you have gained some traction on Amazon. With more control over products and the checkout page, you can tailor your offerings. For example, you can customize things like bonuses to accompany a purchase or a coupon code. Additionally, with a merchant account, you can regain autonomy over transactions and refunds as well as your customer data.

Here are a few reasons why a merchant account is more advantageous for Amazon sellers, especially those who are selling products from a restricted category.
1. 1. More Money in Your Pocket: Amazon takes a cut from every sale that happens on its platform. Although you will pay for merchant processing fees when you have a merchant account, you can control the price of products through your own website. You can retain more revenue if you control the products, pricing and the checkout process. Also, the merchant account fees are only a small piece of what Amazon is keeping of your hard earned profits.
  2. Business Autonomy: If Amazon freezes your accounts, you run the risk of being locked out of earnings. With a high-risk merchant account as a secondary payment channel, you aren’t as likely to be suspended. An acquiring bank, already familiar with your business model and its risk levels, issues your account.
  3. Tailored Business Offerings: Buyers love discounts and coupons that might make them come back for more. Although Amazon does not permit this kind of marketing, you can do it with an independent website and process those orders through your company’s merchant account.
So how do you get started?

A Merchant Account Checklist for Amazon sellers
1. First, you will need a live working website that is fully compliant with terms and conditions, billing descriptor, and a privacy and refund policy.
2. Make sure you are selling quality products and that they have quality images, clear descriptions and pricing. Include a list of ingredients, especially if you are selling something like supplements that are consumed orally.
3. Offer a customer service number (preferably with the same country code as your prospective buyers). The most successful high-risk merchants provide customers with multiple ways to interact rather than just a blank email contact form online.
4. Ensure you have a bank account for your registered business.
5. Have processing and bank statements on hand to prove your business is trading and has some capital.
It’s hard to ignore the hold Amazon has on the world of e-commerce today. However, like many merchants we’ve serviced this past year, you likely want to grow beyond the platform and generate more revenue online. You can have your cake, and eat it too, with a high-risk merchant account that puts e-commerce autonomy back into your hands.

Are you a restricted Amazon seller or are just ready to have to your own merchant account?

Contact DirectPayNet to get a merchant account today!
July 5, 2019
Improving Your Odds – Sports Betting Payment Processing For Winners

Is your sports betting payment processing working to grow your business? It might be time to re-evaluate the play to improve your odds of success! Sports betting was made legal at the federal level in the USA just over a year ago. We’re sure you were one of the companies that enjoyed hearing that the SCOTUS declared the Professional and Amateur Sports Protection Act (PASPA) unconstitutional on May 14, 2018. Since then, at least eight states have passed full-scale legalized betting. Seven states have recently passed bills, and at least 28 states have introduced bills to legalize this billion-dollar industry. Therefore, your sports betting business should be positioned to start earning even more revenue by now. If you aren’t, it’s time to look at how payment processing could help.

Winning at the games – positioning yourself to be a contender

Not surprisingly, fantasy sports kingpins DraftKings and FanDuel currently have a majority share of the sports betting market, albeit mostly in New Jersey. But, there are still opportunities for other companies to lead this industry in different states. What you need to help position your company as a market leader are a few things. This includes an improved checkout process, industry and web compliance, and multiple payment methods.

There are players ready to seize what should be a very lucrative market. However, sports betting companies like yours must deal with the issues that come with being designated a high-risk merchant. You must navigate the tricky interstate gambling waters. You need to know how to meet various regulatory and compliance requirements in the US sports betting industry. Additionally, like other high-risk merchants, your sports betting company may be facing an uphill battle to acquire or maintain a quality merchant account.
So, what do you need to do to get a merchant account? What’s required to transition to a better sports betting payment-processing system that meets all your needs and improves your odds at increasing your player base?

Expanding the bet and getting more players involved

Growing your business means enhancing your knowledge. It means knowing how your players want to and do use your systems. It’s about assessing how you can improve your offerings and using your merchant account to expand your business bets.

Just off the bat, there are three ways to start improving your customer experience while enhancing your payment processing system.

1. Provide multiple payment channels

Your player-base will not be uniformed, so you need to meet them where they are. And this starts at providing them with their most comfortable options for making bets. So, a sports betting company with multiple payment options is already on its way to expanding how many bets will be placed. This can include a merchant account, ACH processing or crypto currencies such as Bitcoin, Litecoin or Ether.

2. Design mobile-friendly platforms

The number of smartphone users in the US in 2018 was estimated at 257.3 million (according to Statista.com) and is expected to grow to 277.8 million by 2021. That means you can’t afford not to target such a captive market. Mobile devices can and will make sports betting much more accessible. Therefore, it’s important that you provide your customer base with a mobile-friendly platform that’s engaging and easy to use. A mobile checkout is your obvious way to target users that put their money where their thumb is.

3. Simplify the checkout process

In keeping with a mobile platform is the need for a simplified checkout process. Nothing turns off a potential customer more than a difficult checkout process. That’s why services like Amazon are consistently working to improve their mobile checkout processes. You want a friction-free space to ensure your players place their bets. Consider tokenizing your customer data as it will allow for faster checkouts and make repeat orders smoother as well as ensure your data is protected. Your checkout should be secure, easy and smartphone-friendly. To learn more about how to ensure your mobile checkout doesn’t suck, click here.

Taking charge of the house – web and industry compliance

When high-risk merchant accounts are terminated, typically, it is because of uncontrolled fraud and chargebacks. Sports betting credit card fraud is a major concern. Friendly fraud in the betting and gaming industry is high, especially due to buyers’ remorse. These are the players who will chargeback legitimate bets, because they lost. When your chargebacks rates are averaging more than 1%, you know there will be hefty penalties to pay or simply account termination.

Finally, like other gambling divisions US sports betting is likely to become a highly regulated market. You must be aware of current and forthcoming industry regulatory and compliance requirements. However, sometimes compliance in the US can be a potential nightmare. There are the problems with underage gambling, gambling addiction, and the many pitfalls of interstate gambling or running afoul of the Federal Wire Act. For example, if a player is found to be placing bets for unidentified foreign parties you could be held responsible. This means you must always be on top of all these issues.

One way to cope is upgrading to more robust internet tools like shopping carts and/or CRMs. These platforms and software should offer flexible checkout processes and be PCI compliant. Additionally, using a tool like 3D-secure to authenticate your orders will significantly reduce incidents of chargeback fraud and add another layer of security to transactions.

Improving your odds – a sports betting payment processing solution

Sports betting payment processing is a lot more comprehensive than it appears. And if you want to seriously expand your business significantly beyond that $20,000-in-monthly-revenue mark, you’ll need to start doing things differently. That means putting a solid payment solution in place like the big guys do. Take charge of high chargeback rates. Reduce the incidents of fraudulent transactions and operating within the frameworks of each respective state law. Also, streamline your business to keep compliant with regulatory standards. You’re going to need software and systems to prevent underage gambling, fraud, and interstate betting. Therefore, improving your odds starts with the systems you have in place.

Are you irritated about losing revenue to fraud, high chargebacks, and breaking compliance rules? Well, work with a solutions-oriented partner who understands the high stakes of high-risk merchant accounts.

We know how important it is to find the right payment processor for your company. That’s why we work with our clients to determine which prospective providers would be the best for their business. Contact DirectPayNet and learn about how we can help you.

June 12, 2019
Reputation Management & Other Quick Tips For High-Risk Merchants

Some small and mid-sized high-risk merchants often grow so successful that the owners become removed from important day-to-day business functions. Website compliance and security could become vulnerable. A few rogue affiliate marketers may steal big sales and commission. And, chargebacks might increase due to poor compliance and customer support. As an online merchant scales, the director may scramble to make decisions without considering how it might affect the bottom line. Consequently, by the time the need for more payment processing nears, they may discover their request for a higher volume limit or another merchant account has been denied due to major risk factors!

Turn your online business around so it won’t affect your payment processing. Follow these best practices to ensure your small or mid-sized e-commerce company runs smoothly. More importantly, don’t ever allow merchant account termination when you could have prevented it. A merchant account that is closed could lead to MATCH listing or difficulty getting new processing.

High- risk merchants overlook reputation management

Many high-risk merchants are unaware that acquiring banks do thorough underwriting during the merchant account application process. Payment providers do care about things like processing history and proof of identity of the business owner. However, online reputation also influences approvals. If the majority of consumers don’t have positive things to say about your product or service, then don’t apply for more payment processing. There is a high probability you will be declined.

Dedicated staff members should help to manage your online reputation whether it be on complaint boards, the Better Business Bureau (BBB) website or social media reviews. If internal resources are not available, then outsource this job. There are plenty of independent social media/community managers or SEO experts and agencies that do this for a living. They can help counter negative media about your company and brand. Stop applying for merchant accounts until these matters are resolved, otherwise you could be facing rejection.

Example #1

Former customers accuse UK-based BOOKIT Corporate Events LLC of running a pyramid scheme. BOOKIT specializes in real estate investment and wealth management program events. Though the customers’ characterization of the business is untrue, irate people take to Facebook, BBB and other public forums to launch complaints. The merchant generates $1 million in monthly revenue, averages a 3.25% chargeback rate, and fails to address grievances, but desperately needs a merchant account in the US for cross-border transactions. Consequently, when they apply for an offshore payment solution from an acquiring bank, underwriters perform due diligence. BOOKIT is eventually declined from further credit card processing, because chargebacks are high and none of the negative media is addressed.

Payment solutions are not easy to obtain. This is why high-risk merchants should make every effort to control their fraud-to-sale ratios. Therefore, low chargeback rates and answering public reviews or complaints about their brand, whether wrong or right, can have a serious impact.

Take control of fraud management

Small and mid-sized high-risk merchants are always at the forefront of new and creative marketing hacks and sales funnel techniques. They have to be in order to stimulate more orders and higher conversions to increase revenue. However, there are cases where ambitious marketing techniques can result in elevated rates of fraud. This is especially dangerous during the holiday shopping season.

Sometimes business owners are so busy it does not afford them time to prevent, detect and manage fraudulent transactions and activity. Therefore, they launch a product, but are not present after for any potential fallout. Things like unmonitored affiliate programs, poor order fulfillment and unclear recurring billing terms ultimately result in chargebacks. Therefore, it’s key for high-risk merchants to take their time, be transparent and perform tests on their offers. There are a few ways to do this. You can implement fraud analytics tools to identify potential fake customers. Obviously, be aware of too many false positives so you are not turning away legitimate buyers, but tailor your software over time to fit your business.

Some high-risk merchants incur a lot of chargebacks, but are successful in reversing them, particularly those wrongly triggered by a buyer. Unfortunately, Visa and MasterCard networks still count original chargebacks as fraudulent activity. Be on guard!

Example #2

Dating and seduction merchant, OutWit LLC is launching a new course to help men land the girl of their dreams! They want to offer a package for newcomers including a six-month one-on-one coaching service, 24/7-access to a member’s area and a new e-book. They open a contest in their affiliate program, develop a unique landing page and use sponsored social media ads for exposure. Thirty days later, over 25 chargebacks emerge from their campaign. Two affiliates used deceptive marketing practices to promote the offer and stolen credit cards for fake sales so they can collect their commission.

High-risk merchants in this scenario should consistently do A/B testing of new offers and sales funnels before making them widespread. If you replace your current page with something unfamiliar, make sure it’s proven to increase conversions. To curb bad traffic, restrict marketing of promotional offers to select prominent affiliates. Additionally, only allow affiliates to promote for a short time (e.g. five to 10 days) to manage the volume. A conservative test will establish if your product should be a short or long-term offer. Also, monitoring sales by affiliate and knowing each of their chargeback and refund rates can help weed out problematic partners.

Moreover, high-risk merchants’ activity is already being watched for fraud. One way to prevent fake transactions is to limit the number of times a card can be applied at checkout during a given period of time. Your shopping cart and/or CRM should have features to stop this activity. If stolen credit card numbers are entered from the same IP, your system should decline these orders. Additionally, consider implementing authentication tool 3D-secure in your checkout. The updated version is more user-friendly and has less of an impact on conversions. Read more about it here.

Customer support is essential for high-risk merchants

Anyone who has ever spent time working in the food service industry knows that some companies believe in the statement “the customer is always right.” High-risk merchants should apply the same philosophy when it comes to customer support. Never say or do anything that will make your customers irate and always be courteous to them no matter the situation.

Make it super easy for customers to reach you, even it it’s to cancel their order. It should be easy for a buyer to find your contact information. Check your website to ensure your details are visible on all pages: terms and conditions; product return instructions; and cancellation policies.

Example #3

E-Cigarette merchant Vapelicious Outlet Inc. has been bombarded with refunds and chargebacks for 90 days. They are breaching the fraud threshold set for their merchant account by their acquiring bank. This could spell trouble for their business if they lose the privilege of accepting credit card orders through their online store. Unfortunately, Vapelicious recently updated their website and forgot to add key information as part of compliance with Visa and MasterCard. Now their credit card acquirer could terminate them.

High-risk merchants like Vapelicious should do a full review of their website. They should check that they have a clear descriptor relevant to their product or business name on their order page. This will remind consumers that they bought from the company once they read their credit card bill. For Vapelicious an obvious descriptor to use would be vapelicious.

A visible toll-free number on the website order page and footer is also another practice high-risk merchants should follow. This ensures customers can call during designated opening hours. More importantly, customers should hear the company name in the greeting message. Support staff should know the products inside-out and speak the same language as the target audience.

Furthermore, if returns are an issue Vapelicious needs a clear refund policy plus ensure signatures on all products delivered. A signature works in the favour of a merchant. It also makes it hard for chargebacks to be issued, and adding 3D-secure to authenticate the online order will make it chargeback-proof.

What are your next steps?

Do you have questions about how to save your existing merchant account from termination? Need to find a payment solution that will help your high-risk business grow? DirectPayNet deals exclusively with medium and high-risk businesses; therefore, we know the step-by-step processes involved in securing merchant accounts, ACH and other processing solutions. We can help, whether you sell a digital product, health supplement subscriptions or high-ticket products and services, so contact our team today!

May 24, 2019
Winning Tactics For Your Next Payday Loan Merchant Account
Securing a payday loan merchant account has become challenging over the last few years. Since 2017 nationwide standards in the US became applicable to the market, the short-term lending industry has hit payment roadblocks due to regulation.

Ordinarily, payment solutions providers take notice when federal or state policies are issued for a particular industry riddled with consumer complaints. Acquiring banks and other payment providers may unexpectedly decline or terminate relationships with merchants in the affected industry in severe cases. This is what has happened to payday lending. However, upcoming changes to the Consumer Financial Protection Bureau’s (CFPB) rules on lending may spell good news for merchants.

Adhering to strict compliance is necessary for high-risk merchants in this industry. But if potential CFPB provisions are approved at the federal level, it may give lenders some breathing room.

Why payday loans have a nasty reputation

Short-term lending has always had a bad reputation, because of the interest many customers (already debt-ridden) find themselves unable to pay. High interest rates, ongoing debt, rollovers into new payday loans and other lending profit strategies sparked complaints from consumers. But, the obligation to repay debt became more difficult once recessions occurred.

Many networks were unwilling to board certain offers in the affiliate marketing industry. Due to financial and reputational risk, payday loans were just one of those that were rejected. However, the 2007-2008 financial crisis (labelled the worst economic disaster since the Great Depression) made things worse.

In 2013, more borrowers‘ complaints about payday loan problems were accepted by the CFPB. In turn, the US government focused its interest on the industry. Consequently, an Obama-era compliance measure forced lenders to establish whether consumers had the ability to repay the loans. This reputational issue and ongoing lawsuits filed against lenders naturally affected merchants in the industry. The reaction from acquiring banks and other payment solutions providers was swift. Consequently, short-term lending business models landed on the prohibited list of payment providers over time.

Applications for payday loan merchant accounts tend to be declined without much consideration. Also, short-term lending in the US has undergone much rejection, as many acquiring banks or other payment processing providers do not want the liability. However, despite the risk there are indeed still some payment solutions providers willing to work with merchants in the short-term lending space. But, there are conditions: merchants must offer ACH or pinless debit options to customers. We explain more about this below.

Changes are coming to payday loans

The CFPB is recommending changes to payday loan providers and this time it will not necessarily benefit the consumer. On February 6, 2019, the department proposed rules to overhaul Obama-era regulations specifically:
- An overhaul of the proposed underwriting rules for short-term lending.
- To delay the August 19, 2019 date by which payday, vehicle, small business loans and other short-term lending groups would need to be compliant.
Concerted efforts to rescind the Obama-era rules were expected to pass by November 19, 2020. However, note that this period is also when the next US election is to take place. The uncertainty at the federal level puts many high-risk merchants in the financial products and service industry in a challenging position. For this reason, it is best short-term lenders follow a very conservative approach when operating and applying for merchant accounts and other payment solutions.

How to get and keep processing for your payday loan merchant account

You already know that short-term lending does not have the greatest reputation. However, it is legal and a select number of acquiring banks and other payment providers will approve this business model.

Earlier we mentioned that lenders who are considered for a merchant account have limited payment channels they offer borrowers. The first is ACH, which is essentially accepting payments directly from the client’s bank account. We have covered this option in depth on our blog. Click here to read Boost Your Online Revenue With ACH Processing & E-Checks.

The second payment channel payday loan merchants can offer is pinless debit. In this case, your customer would use their debit card without entering a pin to make a payment. This is a function similar to tapping your card at a POS terminal to pay for a coffee at your local Starbucks. Payday loan payments don’t need a POS terminal, but they are getting an edge on competing lenders by offering a chip and pinless debit transaction.

Beware of using deceptive practices

All merchants operating in this industry must be cautious about their business practices and banking relationships.

For example, let’s say you launch a marketing campaign for a new lending product. Consider your campaign tells customers that the interest on loans is less than your competitors. However, in the process your company fails to disclose other financial penalties to your client.

Deceptive practices and false claims are illegal and if your payment provider sees enough consumer complaints, the consequences will be enormous. Penalties can include terminated merchant accounts to add to your civil lawsuits and criminal complaints. Punishment for breaking the law is even more severe: if found guilty of criminal charges being placed on MATCH list could be one (among other) critical consequence. Your rights to accept any credit card payments could be stripped for a minimum of five years. While it’s typically not possible to accept credit card payments for a payday loan merchant account, you may have other businesses or products that do.

Strategies for merchant account approval

Respect and follow the law

Be well versed in regional laws where your business is headquartered and potential customers are served. Naturally having solid legal representation is a must. Staying abreast of news about federally-enacted rules is a given! Applicable state laws can change and much more quickly. Additionally, merchants should be abiding by those states’ regulations regarding rollovers (including lending prohibitions, number of rollovers allowed, etc.). Moreover, ensure you are compliant so you can maintain good payment relationships or prevent declines for future merchant account or ACH applications.

Always maintain a compliant website

Your website is your portal for online lending; therefore, it should be compliant. List all lending packages clearly with the amount of interest on each offer. Make sure to include a customer support number where potential borrowers can reach you at any time and note to include that contact information in your footer, contact page and terms and conditions details.

While pin-less and ACH processing are the go-to payment options for merchants in this industry, it’s equally important to make certain your website is secure. Are you using a PCI compliant shopping cart? Have you checked your website for any vulnerabilities of a potential breach? These are all important elements of your website to ensure customers enter their information in a secure environment.

Additionally, does your website block potential borrowers from specific states? Order page checkouts should be tailored to be intuitive and block borrowers from prohibited regions/territories. Beware of promoting rollovers, especially to potential clients in states where they are restricted or banned. If you have any complaints, it’s important to respond to them in a timely manner. Check your reviews on Better Business Bureau (BBB) as well as other popular online complaints boards.

Transparency is key

Transparency is a key step to getting approved for a payday loan merchant account. Therefore, present consumers and payment providers with a proof of license. Be clear and honest about fees and other penalties linked with the loan or prepaid cards you are offering. Remember, it’s not just potential clients interested in this information. The acquiring bank where you are applying for a merchant account for pinless debit or ACH needs to know this too.

Your terms and conditions page is the perfect place to display information about various loan terms and financial offers in general. Additionally, update your refund, cancellation and privacy policies too. Potential clients do not need to play any guessing games about your loan offers.

On the subject of transparency, all transaction invoices must have detailed information. This doesn’t just mean your company and license number (if any), but details about the borrower as well. Therefore, ensure your customer support agents ask for and enter accurate data about all clients. Besides name, email and phone number, include penalties, interest rates, and refund or cancellation rights.

Be conservative

When applying for a merchant or ACH account for the first time, newer merchants should be aware that acquiring banks disapprove of high tickets of $1000 or higher. Banks are conservative, whether we like it or not. They do not like that type of high financial liability, especially in the event of a return or chargeback for that same amount. It’s best to start modestly and keep loan amounts low.

Still have questions?

The above is merely a brief overview of the unique challenges typically involved for payday loan merchant accounts. While we only listed a few strategies, we have other suggestions available to ensure your channel to accept online payments doesn’t go bust.

Payday loan companies that apply for merchant accounts on their own tend to face swift rejection. The approval process is very involved. Moreover, some are uninformed about business, industry and web compliance and other policies required by payment providers. If your merchant service provider isn’t divulging enough information about your rejected account application, it might be time to find another supplier.

If you would like to consult with our team or outsource your next merchant account application entirely, click here and we will reply within 1 business day.
March 21, 2019
From Instagram Model To Entrepreneur. Scale Into The Big Leagues (Pt. 2)
Welcome to part two of our blog post on how to transition from being an Instagram model to an entrepreneur. While it is very possible to make good income from Instagram, it is not a sustainable long-term solution. To really make money, you need to sell your own product or service independent of social media.

If you already promote weight loss teas, supplements, breast or butt enhancement creams, travel services or even racy adult content, you are likely classified as a high-risk brand. Consequently, we will explain how to manage this business label. This blog post will also discuss how to navigate payment processing so you can finally accept credit card payments online.

From Instagram model to high-risk merchant

Depending on your follower count and monthly income, you could be on your way to having a brand on Instagram and a large enough audience for a lucrative business venture. That’s because where many businesses fail is in the lack of coverage and non-existent community/audience on social media platforms. You are already in a prime position to capitalize on the audience you’ve developed as an influencer.

Business ideas for Instagram models and influencers

Some of the product or service ideas you could consider as lucrative ventures that would perfectly align with an Instagram presence include, but are not limited to:
- Oral health or topical cosmeceuticals (e.g. teeth whitening, butt enhancement creams, athletic gels)
- Monthly subscription offers (e.g. beauty boxes, clothing, snacks)
- Lingerie, underwear, sex toys or some other form of 18+ retail
- Health and wellness supplements
- Fitness, weight loss or bodybuilding training programs (digital products with or without a subscription)
- Fetish content, or more risqué webcam or streaming services (again, with or without a subscription)
- Info product or business opportunity (e.g., an e-book or 1-hour course on how to make $10k a month as an IG model)
Ultimately, the possibilities are endless! The main idea, however, is that a lot of these very lucrative online business ideas would make you a high risk merchant. Therefore, finding the right payment solution will become an issue. Accepting credit card payments through PayPal or Stripe are not the best solutions for your website. Neither of these payment processors accept high-risk business models, because they do not like reputational risk. But, we can help you find a payment solution that will.

Accepting credit cards can be challenging

Naturally once you’ve launched your business you will want to accept payments by credit card on your website. Unfortunately, it’s not always easy to move from accepting a check from outside sources versus getting money directly from customers. If you’re an Instagram model or influencer and become classified as a high-risk business, getting payment processing services can be challenging.

More than likely you will flock to payment methods like Stripe and PayPal for what you currently earn from your affiliate promotions and sponsored posts. However, these methods won’t be acceptable if you sell a riskier product, or once you’ve started generating a high amount of income per month. A business that is generating $10,000 or more monthly can lead to your activities being scrutinized by these processors.

PayPal and Stripe might terminate your payment processing

Traditional payment providers are often leery of working with high-risk business models. Once you’re a coach (whether it’s fitness, life or business), an influencer or web cam girl, your Stripe or PayPal account will get suspended. This is especially the case when you start earning more money and may be subject to a few customer complaints. It’s the fear of fraud, chargebacks and other high-risk issues that can curtail your activities on these platforms. That’s why dedicated merchant accounts for high-risk business models exist.

Upgrading to a merchant account can be easy. To start, develop a good financial history. Maintaining a good credit rating and bank statements will help your case. Also, having positive media and Google search results can help you get approved for a merchant account despite the high-risk nature of your business.

So, what can you do?

It’s time to graduate from just being an Instagram model. Use your Instafamous status to think like a true business owner. Instagram isn’t the only way to make a living. It’s time to use the platform to complement your new business and get approved for a merchant account. If you’re not yet at $10,000 in revenue per month, it’s time to step up your game. Start being the entrepreneur you know you have the skills to be. Let’s talk!

All high-risk payment providers are not created equal. You need a high-risk merchant account that can work with and for your business. Our team of experts will guide you through some options to set up your business backend properly to accept credit cards. Consequently, this will help scale your online business. Email us today!
February 7, 2019