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High-Risk Credit Card Processing Tips

Online payment processing can be risky for merchant accounts as it is, but it can be especially difficult for high-risk merchant accounts. Terms and conditions may not be that favorable for the business.

If your business belongs to industries such as online gaming, adult products and services, e-cigarette, nutraceuticals, coins, CBD, travel, consumer electronics, or collectibles, these high-risk credit card processing tips can help you.

Tips for High-Risk Credit Card Processing

While regular merchants have somewhat relaxed policies, high-risk merchants face higher credit card fees, chargeback fees, and secure payment gateway fees. Although these are expected, there are things that you can do to improve your situation. 

Following these high-risk credit card processing tips will shield your account from the risk of suspension or cancellation.

Be Clear About Your Refund Policy

Clearly state your refund policy on your website or physical receipt to minimize disputes. Additionally, provide different options where customers can get in touch with you immediately if they are not happy with the products or services. Include your business email, contact numbers, and physical address if applicable.

Follow-up Emails or Phone Calls

After-sales support plays a crucial role in establishing a relationship with your customers. A courtesy call after purchase or a follow-up email with a survey will help identify if a customer is happy. 

Validate Order Information

Always do CVV and address verification or a payer authentication—such as the Verified by Visa program—for every order or transaction to make sure that the details provided match the card holder’s information. While this may cause a little inconvenience to customers, it will also foster trust knowing your business takes security seriously. This strategy is most applicable if you notice suspicious orders.

Customer Order Pattern

Monitor customers with bulk or unusual order patterns, especially when making purchases for high-priced merchandise.

IP Address

As much as possible, check whether the IP address matches the country in the billing or shipping information.

Chargeback Alerts

A chargeback alert system in place will let you address the issue even before the chargeback is initiated.

Since a high chargeback rate can get a merchant account canceled or suspended, adhering to these useful tips will keep your chargeback rate low. 

It is clear now more than ever this trend isn’t going anywhere as the younger and even older generations are shopping online, especially because it’s more convenient. But as more people shop online, there’s a greater chance of friendly fraud as well as more serious payment fraud activity. Thus, it’s critical to monitor all activity to protect your business and your customers as well.

Credit Card Processing for High-Risk Businesses

Finding a reliable payment processing company is key for high-risk businesses. Merchant service providers are not created equal, so it is always a good idea to choose the right processor.

No matter what type of business you operate under the high-risk category, always opt for a credit card merchant processing account that will help your business grow. 

The experts at First Card Payments offer chargeback prevention and high-risk credit card processing tips to give your business the best shot at success. Contact us to learn more about the merchant services we offer.

( Merchant Account Specialist )

Mitchell Fardell is a highly experienced payment processor who has worked for First Card Payments since 2019. In that time, he has worked on large accounts, small accounts, and everything in between.

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