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7 Things You Should Know About Having a High Risk Merchant Account

7 Things You Should Know About Having a High Risk Merchant Account

Conceptual business illustration with the words merchant account
Having a high risk merchant account is a necessity for some businesses. Learn more about this type of account with these seven facts.

If you have an online business, accepting credit cards as a form of payment is absolutely critical to your success and your bottom line.

But if your business is considered high risk, finding the right match can be a daunting task.

So, what do you need to know about having a high risk merchant account before you begin looking for the right company to serve your needs? Here are nine things you should be aware of before you make a commitment.

1. Determine if Your Business is Considered High Risk

Before you select a merchant processor, you need to know if your business is even considered to be high risk. The criteria can vary widely between providers, but one of the first things they look at is if your industry typically has a high rate of fraud or chargebacks.

If you’re not operating from the United States, this is another potential indicator of high risk. Certain categories like firearms, drug paraphernalia, or even auction sites may also be considered high risk. Find out if you fall into this category first so you can be prepared for the next steps.

2. Prepare for Higher Fees and Longer Contract Terms

If you have a high risk merchant account, you can expect to pay more in processing charges and billed account fees. The reason is that your processor is taking you on as a risk, so they’re passing the cost of that risk on to you.

You’ll also likely have to keep your contract with the processor longer than you would if you were not a high-risk client. On average, high-risk accounts must stay with the same processor for three years or even longer.

An auto renewal clause is usually included which can force you to remain an ongoing customer for periods of a one-year minimum after each renewal. If you want to cancel, you’ll likely get hit with an early termination fee.

3. Check Available Plans for Your High Risk Merchant Account

Merchant processing plans can vary, so shop around until you find one that offers terms you can live with. Traditionally, these fees are charged on something called an interchange-plus pricing plan, although your rates will be higher than a low or no-risk account.

Find out if you can get a flat-rate pricing plan which will make billing a lot easier. If you discover that a merchant processor is charging extremely high per-transaction charges, you may want to steer clear. Compare rates and plans until you find one that’s within a reasonable amount.

4. Be Aware of Rolling Reserves

The term rolling reserves refers to money that is set aside from the proceeds of your sales in order to cover certain expenses. These reserves will help pay for things like chargebacks, and they’re put in place to protect the merchant processor.

Since many high-risk accounts tend to go out business, these reserves are there to cover any unexpected costs to the merchant processing company. If you’re new in business, you can almost guarantee that this is a requirement. However, as time goes on, the rolling reserves should decrease as long as your account remains in good standing.

5. Read the Fine Print

Any reputable merchant processor will give you a contract that spells out all of your fees and terms. Make sure you read this thoroughly before you make a commitment.

Look closely for different clauses that could cause you to pay even more than you expected. Some companies claim to specialize in high-risk accounts so they feel that they can charge their merchant accounts exorbitant fees. Do your homework and never sign anything until you’re completely comfortable with the terms and the cost.

If you’re ever in doubt about a potential merchant processor, ask your fellow business owners who they recommend. You can also read reviews online to find out which ones most high-risk customers are happy with, and which ones to avoid.

6. Security Measures will be Added

A quality payment processor will add some layers of additional security to your account. This can actually benefit you since it will help prevent fraudulent transactions and dishonest chargeback claims.

Requiring things like CVV2 verification is a good thing since it protects you and your processor from fraud. Ask your provider about what kinds of security measures they take to protect themselves and your business from unscrupulous transactions.

7. Develop a Good Track Record

If you really want to lower the costs associated with a high risk merchant account, work diligently to prove your salt. This could mean anything from reducing or completely eliminating chargebacks to consistently showing a profit for a long period of time.

The longer your business does well and maintains its reputation, the better off you’ll be in the eyes of the merchant processor. Some providers may even reward their high-risk accounts with lower rolling reserves over time or even reducing fees as time goes on.

Ask several potential merchant processors what kind of benefits they offer high-risk accounts if they do well. You might be surprised at the progress and positive benefits you can reap once the business is more established.

Success is Possible

Even if you operate a high-risk business, there’s no need to despair. With a few helpful bits of information and a little research, you can find a quality high risk merchant account that will serve your needs well.

Visit our website for more information about: High Risk Merchant Services.

How to Find High Risk Merchant Services for Ecommerce Stores

20 years ago, it was amazing to have a book come right to your door from a little online store called Amazon.

Today, what’s even more amazing is that you can run your own little online store and send your own crafts and other products to your customers’ doors. Online services like Shopify and Miva have made it easy to open stores, bringing in side-hustle level money or even creating full-time gigs.

Collecting money is a critical aspect in online business success. Luckily, the ecommerce platforms make it easy to connect with merchant processors to make accepting credit, debit, PayPal and more payments simple. You will need both a merchant service provider and a payment gateway. It may be a few steps, but accepting a wide variety of payments only takes filling in fields online. You the ecommerce platform about the merchant service and payment gateway you want and follow the instructions to connect both to your bank account and website.

The good news is that technology has progressed to the point where vendors can have a store without a website. Google Shopping, Facebook Stores and Instagram shops sidestep the need for a website. Merchants simply list their inventory on their ecommerce platform and feed it out through a line of code.

Even better, most ecommerce platforms accommodate any merchant service provider you choose. To pick the right one, consider your business’s potential expansion and make sure your plan will accommodate that growth. Also, ask the merchant account service what specific features they offer for ecommerce shops.

Test All Software and Hardware

Quality software and hardware require a trial run before unleashing your business upon a market. It also gives you a chance to check out the customer service that comes with your ecommerce platform and your merchant account. Run through some experimental purchases. Get this done because when a glitch occurs in real-time with a real customer, you want to be able to get it taken care of quickly and with little thought or research. You risk not only alienating customers but ending up with chargebacks and returns.

Understand Fees Involved

Merchant account service charge a percentage for all transactions plus a flat rate for each transaction and a fee for each month. If the merchant service is asking for application, setup, programming, annual or termination fees, be wary. These fees are often considered unethical, and the competent providers do not require them.

Depending on the type of ecommerce business you run, you may be better off paying more up front but allows you to have a greater number of transactions each month. You have to look at your business and crunch the numbers to see what works best for you.

Finally, look in the fine print for “transaction volume caps,” or other charges. These can eat into your profits. Set daily or monthly transaction caps could prompt your provider to shut your account down. That’s the last thing you want if a surge in sales arises during a promotional or holiday offer.

Merchant Services Help You Increase Your Sales – Call 1 (800) 950-0212

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4 Ways to Reduce Your Merchant Credit Card Processing Fees

Credit card processing fees just come with the territory. That customers spend 20 t0 50 percent more when using credit cards should reassure you that accepting them feeds your profits. Use these tips to keep even more of your profits when you reduce your merchant credit card processing fees.

Find the Processor that Wants You

Just as lenders can specialize in certain types of borrowers, processors like to stock their portfolios with merchants that meet carefully selected criteria. They marshal the software and hardware that caters to different transaction amounts and volumes. They may also design their offers by a merchant’s average ticket price (ATP) or lifetime value (LTV). That’s why you should evaluate several merchant processors to see which wants to work hardest for your business.

This said, make sure that processors offering low rates also provide sufficient services and aren’t hiding fees. When you find a possible processor, check its Better Business Bureau rating. Create a spreadsheet and get answers to the following questions:

· What is the total interest rate when including all fees?

· What are the application, cancellation, statement and service fees? Can these be waived?

· Do you require contracts? What are the terms?

· How can I get a lower fee per transaction?

Those not willing to work with you do not deserve your business. Review the answers other merchant account services. Always read the fine print.

Hardware Considerations

Leasing credit card terminal means you’ll end up paying up to 20 times the machine’s cost. Typically, leases run for three to five years. While the terminals cost $200 to $400 up front, leasing can run from $40 to $70 each month. Keep in mind that you can also consider mobile credit card readers that plug into smartphones. These include Paypal Here, SparkPay, Intuit GoPayment and more.

There are also a handful of new mobile credit card readers merchants can consider. These inexpensive devices plug into a smartphone or tablet and allow credit cards to be accepted from anywhere. Examples include Square, Etsy, Intuit GoPayment, Paypal Here, Spark Pay and Amazon Local Register. Evaluate them to determine which fit your sales type and volume.

Remember to Swipe Rather than Entering Manually

When the merchant enters the cardholder’s information manually, they’ll pay more in fees per transaction than if swiping the card. Accounting software Intuit tells us that this is because processors know that manually entered transactions can be more easily hacked by thieves. A credit card’s magnetic strip or EMV chip has the most state-of-the-art security features. When a merchant enters numbers manually, those security features are not engaged. With risk of fraud high with manual entry, processors balance their risk by charging more. If you have to retrain cashiers, do it.

Use Minimum Sales Amounts to Maximize Profits

Convenience stores and restaurants have credit card use minimums for good reason. Small transactions with thin margins can make the sale a money loser. Some merchants worry that a minimum could cut sales. If customers push back on this policy, explaining the costs involved usually helps them understand.

All it takes is putting up a note that says you accept credit cards, but require a minimum sale of $10 or $20. If a customer doesn’t understand, simply explain that the cost of processing plastic can be burdensome.

Today, all businesses must accept credit and debit cards. With all of the additional payment methods requiring a processor, no business can go without a merchant account. The fees involved should not scare you away from providing your customers a wide variety of ways to pay.

Merchant Services Help You Increase Your Sales – Call 1 (800) 950-0212

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14 Forgotten Items and 14 Places to Sell Them to Pay Off Your Cash Advance

 As much as we want to believe the future is bright, many Americans still struggle to get ahead.  Saving enough for a home down-payment or credit card consolidation can seem daunting.

Renowned online financial planning publisher Bankrate explains that that more than three in four Americans are living paycheck to paycheck and 76 million Americans struggle to keep food on the table. Believe it or not, 80% of American adults are in some form of debt. Even though the majority of us depend on debt to maintain our current lifestyle. Many depend on the cash advance to repair cars and computers or pay the medical bills that keep us earning.

The largest online marketplaces include:

CraigsList: while you set the price, people will still offer less. Still, you stand to get more on craigslist than selling to a pawn shop because you’re selling direct to the end consumer. There’s no middle man needing his or her cut.

Close5:  the reselling newcomer in App form, Close5 only lists people with items within 5 miles of you. Like CraigsList, you can set the price, but buyers will try to haggle.

eBay:  unlike CraigsList, eBay operates on an auction system where you set a starting price and hope it moves up from there. You can also choose to not sell if you don’t get the amount you want. An eBay account is very simple to set up. Keep in mind that you will pay shipping.

Pawn Shops:  the best place if you need cash fast. Managers have certain prices and set margins they must stick to, however, leaving less for you.

Those who looking to escape debt or pay off credit cards or a cash advance should look to the items in their homes they no longer need. This step not only brings down your interest payments, it declutters your home. Review this list for good items to sell and the best outlets to sell them:

  • tools: CraigsList, pawn shops
  • phones: gazelle.com and a GameStop near you
  • video games: GameStop, especially if you’re buying new games or Amazon’s Trade In program, now an eBay company, also takes used video games
  • music, videos and DVDs: Second Spin is the largest re-seller of used DVDs, Blu-Ray and videos. DeClutter and com are other possibilities
  • sporting equipment: A Play It Again Sports store near you. Otherwise, CraigsList, Close5 and pawn shops.
  • appliances: CraigsList, Close5 and pawn shops
  • books: bookscouter.com (especially for text books) and Amazon’s book buyback program
  • clothing: high quality, gently used clothing is best turned over to a consignment store. Popular lines get the best return on eBay or CraigsList. There’s also the new ThredUp which sends you a bag in which to send your old clothes. This outlet tends to prefer designers like Ann Taylor, Calvin Klein, etc.
  • kid’s toys: especially when put together in age-appropriate bundles and sold on eBay, Close5 or CraigsList
  • jewelry: estate jewelry shops and consignment stores. Get appraisals first!
  • music instruments: Local music stores, but they will want a slice of the profit. With Close5 and CraigsList, you sell directly to the parent.
  • furniture: consider Close5 and offer to deliver. Shipping costs for big items will cut into your selling price. If that doesn’t work, look around eBay to see what your piece may be worth and try to get that at a yard sale.
  • cameras: Keh Cameras still takes film cameras, but better prices are for the DSLRs. It also takes vintage cameras for higher prices. Otherwise eBay. Again, look around to see where the better prices are.

 

Steps to Start Generating Cash from Your Forgotten Items

  1. Check unused rooms, basement, attics, trunks of cars and garage. List all of it and beside the list, write the marketplaces you’ll try first and second.

Don’t let your emotional response guide you. If you know you don’t need that item anymore, let it go. It will be of much use for others. Family members, living and dead, will be proud of you for getting your finances in order.

  1. Set up your accounts on sites like eBay and Craigslist.
  1. Take pictures of the items you are about to re-sell. Remember, make it appealing. Try many angles of the picture so the customers can check every side of the item. Borrow a friend’s DSLR to get the best shots and Google how to light items correctly.
  1. Check the shipping costs at usps.com so that so you won’t lose money when shipping an item.
  2. Finalize the list and check the complete list of items you have. Explore how much similar items are going for on eBay, CraigsList, Close5 and others. If you’re selling jewelry, silver or gold, make sure to get an appraisal first.
  3. Create listings for every item. There are many ways to simplify this process, but some find listing on Saturdays or Sundays keep them on track better.
  4. Check messages once in a while. Buyers will have clarifications or questions regarding your product and their messages will come frequently. If you have more bidders, higher prices in the end.
  5. If you already sold and shipped a product, immediately leave feedback for the buyer. Ship the items immediately as possible to avoid negative feedback and win good reviews.

First Financial helps Americans get the cash they need at the most competitive rates. In the digital era, we set up and help you manage your cash advance, business loan or merchant services 100% online. We specialize in products for all kinds of borrowers, including those with fair and poor credit. We’ve done the work to find appropriate lenders that keep you solvent!

Multi-Level Marketing Enjoying Upswing

graphic of multilevel marketing account

 Next time anyone hints that multi-level marketing is a “fringe” business, let them know that in 2015 it brought in $40 billion, a level on par with the pet and cosmetics industries.

Recently, a Forbes article even positioned multi-level marketing as a solution to America’s current retirement savings crisis. After conducting his own research on the multi-level marketing industry, the once-skeptical Forbes author and self-proclaimed retirement activist Robert Laura states, “I no longer perceive these types of opportunities as money-making pyramid schemes. Instead, I now see it as a way to enhance many of the personal aspects of retirement.”

Laura isn’t alone. Some of the nation’s strictest number crunchers concur.

IBIS World, the renowned resource for industry trends, reported that direct selling companies (aka the multi-level marketing industry) has shown annual growth each year over the past five. IBIS World predicts that, “the industry is expected to continue to grow, driven by improved consumer confidence.”

The Direct Selling Association Growth & Outlook Survey also forecasts a robust future for multi-level marketing. Not only has the industry grown every year since 2009, the 5.5% increase in revenues from 2013 to 2014 entices anyone looking to make a living selling unique products through community connections.

Springboard Your MLM Business on 2016 Trends

As much as industry pundits’ perspectives support multilevel marketing’s potential, staying current on the prevailing trends in the industry maximizes sales. Consider:

• Tie-ins Boost Sales: Tailor your product to your clientele, regionally. Tie in your product with a popular local festival, or any other popular seasonal event. Whether it’s a tie-in to a new Star Wars movie, or maybe a “back-to-school” sale bonanza, incorporating a fun theme keeps customers upbeat, and certain you’re looking out for them.

• Technology/Mobile Boosts Sales. Hit up your home base for any and every mobile solution they have. Leverage their sales and marketing apps, presentations and the screens that help you sign-up new recruits and customers via smartphones. Make sure ease of online payment is evident on these apps.

• Social Media and Email Keep You Connected. The Facebook group you create gets your messages to your team on a platform they most likely check daily anyway. Email (no more than weekly!) to both team members and customers keeps your business top of mind.

• Videos Familiarize. Don’t forget to post videos of yourself using new products, and then feel free to email/post on Facebook and YouTube. When your potential customers can see the product in action, they get more excited about experiencing it firsthand.

multilevel pyramid of people
A+ Rated First Financial Offers High Risk Merchant Accounts for Multi-Level Marketing Companies

Multi-level marketing revenue has gained ground since the economic downturn. Many Americans who lost their jobs in the wake of the recession established direct selling businesses as a means of income due to the relatively low start-up costs. As we approach 2020, the industry is expected to continue to grow, driven by improved consumer confidence, improving employment figures and disposable income. To get the multi-level marketing merchant account customers trust and appreciate, apply today!


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Merchant Services / High Risk Merchant Accounts: Main 1-800-950-0212  Fax: 1-800-215-0217

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