Financial risk and reputation are always the main concern of any financial institutions. Any wrong practice can result in damaging the image of the business. Sites which offer memberships are regarded as high risk merchants, irrespective whether they practice illegal or shady things or not, due to which it becomes difficult for the business owner to find an institution willing to accept its application for merchant account and even more difficult to find an institute which will offer a reasonable terms on his account.
Considered - High-risk
The proprietors of many membership websites found their merchant account closed abruptly. The reason for this action was new guidelines released by MasterCard that put certain practices common to the membership site business model under much greater inquiry or analysis. Before MasterCard implemented new rules, many membership sites used techniques that were widely regarded as deceptive or even fraudulent. Not only MasterCard changed its policies, but Visa had also issued similar guidelines. This resulted in conceding all the membership sites as high-risk merchants.
Let us discuss the points that make Membership sites as High-risk merchant:
Negative-option enrollment: The customer makes a single payment for a product or service, but in doing so they are automatically signed up for a paid monthly subscription which they must actively cancel or opt-out of to avoid being charged.
Free trials: The customer or member is promised something for “free” (including “deferred billing” or “just pay for shipping!”), but the process of obtaining the “free” item or service results in them unknowingly being signed up for a paid membership or subscription.
Burying terms in the fine print: The membership site makes the terms of its charges and refund policy difficult to find by hiding them in the middle of a lengthy user agreement, or in tiny text in some obscure corner of the website.
Start a merchant account
Your best option is to work with a credit card processing company that specializes in high-risk merchant accounts. Some of the payment processors willing to offer you an account may charge high fees or hold back an unnecessarily large percentage of your income as a “rolling reserve” to cover the risk of chargebacks and other losses from unhappy members. While processing companies are taking a gamble by offering accounts for membership sites and need to protect them, these high rates can be painful for small businesses.
In high-risk business, you must work with a charge card dealing with an association that has skills in high peril shipper accounts. A part of the portion processors willing to offer you a record may charge high costs or keep down a senselessly broad level of your compensation as a “moving store” to cover the risk of chargebacks and diverse hardships from harried people. While dealing with associations are taking a wager by offering speaks to enlistment districts and need to secure them, these high rates can be troublesome for privately owned businesses. Merchant Services is cheerful to work with High-Risk Merchant and tune in to their requirements to give sensible participation site accounts.
Multiple Payment Platforms:
Recurring Billing Module Available
CRM Telemarketing Solutions
eCommerce Shopping Cart Gateways
Our Benefits:
Multiple Payment Options, including eCommerce and Recurring Payments.
Fast Online Application Process, offers fast approvals for merchants.
Your Own Dedicated Account Manager.
Diversified Bank Acquirers with an appetite for the subscription industries.
Rapid decisions processes for approvals.
At Merchant Stronghold, your business success is our ultimate goal. Click & Sign Up, our dedicated team has negotiated on behalf of more than 15,000 Clients. We understand the back and forth and give and take of negotiating processing accounts for high-risk merchants, including hundreds of subscription service merchant accounts.
No comments:
Post a Comment