Getting higher credit processing volumes for high-ticket merchant accounts
Because of the financial risk related with high-ticket businesses, many are given merchant accounts with the month to month credit card processing volume caps. This implies merchants are just allowed to deal with a specific number of credit card transactions every month. When the cap is achieved, a merchant can no longer take credit cards as payments during that month. Online organizations that rely upon customers paying with credit cards, fundamentally should quit taking sales until they reach the next month.
Caps, in the end, get lifted for most businesses. High-ticket merchants that require higher processing volumes can ask for new caps in as few as three months. Around then, they should prove that they pay their bills, have low chargeback ratios, and have some money saved.
High-tickets equal high chargeback ratios
The reason high-ticket merchants see exorbitant chargebacks is really basic. The risk of loss is higher if a customer charges back a $3,000 deal than a $30 deal and purchasers are more likely to alter their dispute a transaction when item or service is more costly. When chargebacks include, it isn’t uncommon for a merchant to go belly up. If a merchant shuts down out of the blue or just vanishes, processors and their support banks are the ones left responsible for the hefty chargeback fees.
Merchants that sell costly products also are more defenseless against fraud. Cybercriminals target high-ticket merchants. It isn’t exceptional for them to utilize stolen credit cards to purchase gems or electronics and afterward have them dispatched to the United States and after that rapidly have them re-delivered to another location overseas. The merchant, processor, and its support bank are in charge of refunding the product or the cost to the purchaser.
There also is friendly fraud, which is when clients purchase things, get it, claim it was defective, did not arrive, or was not what was promised, and then, calls their credit card companies to dispute the charges. Fundamentally, clients end up getting the product or service for nothing.
Above all, it is essential that merchants disclose to processors in advance that they sell products and services that have higher-than-normal price tags. Subsequently, merchants will get approved for an account that can suit those reaches. High-ticket merchants that neglect to do this can end up having their merchant’s accounts suspended or close down for all time on the grounds that their business activities look sketchy.
Ways to keep chargeback ratios low
High-ticket merchants should be vigilante with regards to avoiding excessive chargebacks. Merchants that consistently bargain in items with high-ticket values can’t eliminate the risk of fraud totally because of the business sectors in which they exist, but little changes can help. A strong business model and clear return and refund policies aside, organizations that offer increasingly costly things need to raise the stakes as far as fraud prevention.
One great approach to eliminate fraud, which at that point prompts disputes and chargebacks, is to include an identity check purchasers before they submit transactions. Executing an electronic ID confirmation at checkout is a straightforward and financially savvy solution. Asking customers to email a selfie of themselves holding a driver’s permit or another type of ID is another approach to demonstrate a buy was valid.
- Other good practices include:
- Altogether checking on any orders that appear questionable
- Getting a digital signature from customers who are making the purchases
- Avoiding sales from nations that are known for internet fraud
Also, when high-ticket merchants acknowledge MO/TO (mail arrange/telephone order) or online business payments, the client’s credit card data is entered through a payment gateway or virtual terminal. Utilizing a gateway, a UI that transmits card information to the processor safely, is an incredible method to eliminate credit card transaction disputes. Merchants also can eliminate a substantial volume of chargebacks if they use ACH, or Automated Clearing House, payment processing, and also other check solutions. ACH is an electronic payment solution that empowers businesses to deduct reserves straightforwardly from a client’s bank account.
Other critical moves to make are including clear charging descriptors, which incorporate a merchant’s name, contact number, and return and refund policies. This is profitable in light of the fact that so many chargebacks are because of clients not recalling or perceiving transactions on their credit card statements.
Communicating transparently and regularly also can go far in any high-ticket business in any industry. When a transaction is finished, send an automatic electronic confirmation or receipt. If a dispute arises, stretch out beyond the circumstance by training staff to offer full refunds. A discount is less expensive than a chargeback. Such a large number of chargebacks not just cut into net revenues, they can prompt processors closing down merchant accounts.
Merchant Cash Advance for Automotive & High Ticket
A typical issue for a high ticket or high average transaction industries is finding a merchant services provider that will process your electronic payment processes. The risk from high ticket value transactions will frighten away plenty of traditional banks and service providers.
Dealing in high-end, high-priced items?No need to worry, we’ve got you covered. We offer a variety of merchant processing accounts set up specifically for the high-ticket industries.
We have no transaction limits or restrictions for our programs.
- No Application Fees
- Competitive rates
- No VISA/MasterCard Required
- Multiple Secure Payment Gateway Options
Good Practices for High Ticket Merchant Accounts
- High ticket merchants must have a solid business model accompanied by clearly stated policies for return and refund to help lessen excessive chargeback.
- Must be actively trying to eliminate fraudulent transactions by verifying the customer’s identity before submitting the transaction by implementing online identity verification during check-out.
- Conducting an order review to check if there are orders that appear questionable.
- Requesting for the digital signature of customers that makes purchases.
- Restrict sales from countries that are known for high internet fraud.
- Billing descriptors for the transaction must be reflected in the billing statement of the customer including the merchant’s name and contact number to avoid chargeback that is caused by the customers not recognizing the transaction.
- Provide excellent customer service by responding to customer’s phone calls and emails easily giving the customer a positive customer service experience. Because customers who invest in high ticket purchases have greater expectations and are more likely to dispute even for the smallest reason.
- Clear and detailed product or service descriptions must be provided and disclosed to the customer to avoid customers’ dispute.
Additional benefits of the high ticket business merchant account:
If you get a high ticket merchant account with IPAYTOTAL, then you will also be eligible for other benefits that we offer, the best solutions for e-commerce businesses. We guaranty quick real-time credit card processing, top-notch services and at reasonable rates. Give us a call at +44 800 776 5988 or get in touch with us through our website. Businesses can receive the following additional benefits:
- Competitive rates
- Acceptance of multiple currencies and deposits
- Compatibility with major gateways and shopping carts
- Accept Visa / MasterCard / American Express at your store
- Integration assistance with more than 100 shopping carts
- Chargeback prevention tools and advice
- eCheck processing
- Our gateway comes with the industry-leading fraud detection and prevention tools