With regards to the ticket value of products and services, a few industries just normally have higher costs than others. As a rule, a business that offers shirts will have very low individual order charges than an organization that offers high-end products that can luxury watches, smartphones or any premium products. Apparently, this appears quite evident, but what isn’t always as immediately evident to the business owner is the way this shapes how a credit card processing company will view them when they apply for a merchant account.
Payment processors are careful about organizations that have high average transaction charges. To you, these high value transactions speak to profit – yet to the credit card processor, they speak to risk. High-value charges are critical risks for your financial organization in two different ways: first, if your client is unsatisfied for any reason, the probability that they’ll make a move is straightforwardly corresponding to how much cash they spent. A client who burns through $10 on a grocery store may very well shrug it and proceed onward on the off chance that you make a mistake with their request. That is a much less likely response on the off chance that they’ve spent thousands of dollars on a precious ornament.
The second reason high-value transactions are risky for processing organizations is the likelihood of fraud. Envision an identity thief steals a customer’s credit card number and personal information. It’s significantly more likely he will utilize that card to purchase high-end products and other premium merchandise, as opposed to a Venti Latte. Large buys of costly items give fraudsters the greatest value for their money, and in this manner, those transactions tend to raise the most eyebrows with payment processors.
Obviously, entrepreneurs aren’t unconcerned with worries about chargebacks and fraud, either. So what would you be able to do to lighten these issues? That depends to some extent on your industry. If your normal sales transaction is less than $1,000 and you all of a sudden get an order that is very greater than your average sale, it may be astute to ask for an alternate type of payment or – painful as it might be! – to deny the charge outright. Organizations that consistently deal in high–ticket-value items simply exist in an environment of greater risk, and while there are steps you can take to reduce the risk of fraud, you can’t eliminate that risk entirely, or even bring it down to the level of business with smaller-scale charges.
At last, this means you will have a harder time finding a payment processing company willing to offer you a merchant account, and a large portion of the ones who will work with you will do as such with risk management on top of mind. One thing you should take care to stay away from is low-balling your evaluated ticket size and month to month volume. Credit card processing organizations ask on their merchant account applications about your expected average transaction size and month to month charge total , if you consistently surpass the values you evaluated by a substantial edge, you could discover your merchant account suspended or even for all time shut down, which will make things considerably harder for you going ahead.
Regardless of this, high– ticket merchant account holders aren’t destined for excessive fees in order to do business. Some payment card processors will negotiate with organizations in high-risk fields and achieve terms that recognize the risk included yet at the same time work for the merchant.