Well depending on how you look at it, there is a restart button. If you have the finances if you have the gumption, and if you didn’t have an unresolving passion for the industry you were trying to break into, then you could just restart in a new industry. Forget this business entirely, because chances are you just began…
Hit the old eject button and get outta there. I mean it’s that easy right?
The truth is, you selected this industry with a purpose in mind, you probably really did a lot of work getting started, you are passionate about it, you’ve invested time, money, and effort into it so far. All that’s changed is that you’ve reached your first major speed bump as a business owner.
Congratulations! If anything, this is a milestone you’ve reached and now it’s time to get to work.
Serial entrepreneurs will tell you that problems are a part of the gig. That’s just what you’re going to have to live with on a daily basis. Elon Musk, you’ve probably heard of him, the man behind Tesla and SpaceX, said, “Being an entrepreneur is like eating glass and staring into the abyss…”
The thing about being an entrepreneur is that you are going to constantly face problems and issues but being defined as high risk by a bank or ISO is not an issue. It’s just one of the smaller details you’ll have to deal with on and make a daily part of your routine.
Here’s a little guidance for you:
Now that you’re a high risk merchant account, you need to pay closer attention to your chargeback ratio. See banks and ISOs hate to refund money to customers and if they have to do it on your behalf, they will revoke your account status.
Your chargeback ratio should be less than 1% per month. That’s the general rule. And you can keep it down just follow these steps:
– Have an easy-to-find and use return policy on your site.
– Give returns if they are warranted.
– Keep all documentation in case you want to dispute.
See more chargeback prevention tips here. As a high risk merchant, the interesting thing is you are actually allowed to have MORE chargebacks than most regular merchants. But just don’t push it too far.
You’re going to need a backup account just in case things go a little haywire or in case your primary high risk merchant account is frozen for any reason. This happens from time to time, you would be surprised how often.
So sign up with one or two different high risk merchant processing companies and have a backup account ready to go and switch to in case your service is interrupted for any reason.
But trust us when we say: have a backup account setup and ready BEFORE you need it. That will make the switch so much easier and it will avoid a longer period of downtime if your primary merchant account is frozen. You can keep business going while you deal with the issues at hand. So start looking for that backup now.
Oh what a coincidence, First Card Payments offers 25% off for customers who sign up for their high risk merchant accounts here.
Hey, the British get a few things right: whiskey, tea, and phrases about perseverance it seems.
In the end, being classified as a high risk merchant account is not the end of the world, it’s the beginning of your new business. This is your new venture, your new time to shine, so don’t let some bank definition get you down.
You will have to do with a few extra steps and a few twists and turns from time to time but hey, that’s business. When it comes to running a business that’s considered high risk, remember that there are also plenty of other companies that are doing it and doing it well. Being classified high risk does not mean you are not going to succeed. It just means you have one or two more steps to follow. So, keep calm and carry on.