Low cost credit card processing is for low-risk merchant accounts
Low cost credit card processing is the number one benefit for businesses who are approved for low-risk merchant accounts. Can your company benefit from processing through a low-risk merchant account? Learn more about low-risk merchant accounts so you can concentrate on the finest processing choices for the characteristics of your company.
What constitutes as a low-risk merchant account?
A low-risk merchant account has a lower risk of fraud or chargebacks. It’s for businesses in low-fraud industries. It’s granted to businesses with good credit, stable processing, and low chargebacks. Low-risk accounts have lower fees and faster funding. Categorization is based on factors determined by payment processors. Different processors may have different criteria for low-risk accounts.
How to qualify for a low cost credit card processing?
You might discover that following a few steps enables you to qualify for low-risk merchant account processing, depending on your sector and business structure.
The following processes cannot be used by every business to qualify. For instance, businesses who exclusively sell their goods online will require high-risk merchant accounts. The fact that internet businesses pose a greater risk to payment processors means that there is, regrettably, no way to completely avoid it.
Use the steps below to assist your business become eligible for a low-risk merchant account if you run a brick-and-mortar operation.
1. Use the Correct Merchant Category Code
The merchant category code (MCC) you use to identify your business type. You should get in touch with each credit card company you accept to double-check your MCCs because they can change depending on the provider.
Visa, for instance, employs the subsequent MCCs:
- 7230: Beauty salons such as hair salon and nail salons
- 5499: Convenience stores and food stores
- 5511: Car and truck dealers (New and Used) sales, service, repairs, parts and leasing
- 1520: General contractors – residential and commercial
Why is your MCC important? The code helps credit card issuers evaluate whether you fall within the category of a low-risk or high-risk business because it informs them of the type of business you own. You are not qualified for a low-risk merchant account if you mistakenly utilize the MCC of a high-risk sector of the economy.
Furthermore, many credit card issuers provide discounted rates and fees for a number of MCCs.
Use the proper code to obtain the proper account and pay the proper fee. When you open a merchant service with HTSwipe, we make sure to use the right MCC code for your business type so you don’t have to worry about it.
2. Lower Your Number of Chargebacks
While it is natural for businesses to encounter some chargebacks when accepting credit and debit card payments, unfair chargeback policies can place you at a disadvantage. Nonetheless, there are steps you can take to proactively minimize the occurrence of chargebacks for your business. Below are some of the steps you can implement for your business:
- Clear Communication and Transparency: Clearly communicate your policies, terms, and conditions to customers before and after the transaction. Provide accurate product descriptions, pricing, refund policies, and shipping information to avoid misunderstandings or disputes.
- Reliable Customer Support: Offer prompt and reliable customer support to address any customer inquiries, concerns, or issues. Responding quickly and effectively to customer inquiries can help resolve problems before they escalate into chargebacks.
- Enhanced Fraud Prevention Measures: Implement robust fraud prevention tools and systems to detect and prevent fraudulent transactions. Use address verification service (AVS), card verification value (CVV) checks, and risk scoring algorithms to identify and block suspicious transactions.
- Clear Billing Descriptors: Ensure that the billing descriptor on the customer’s credit card statement clearly identifies your business. A recognizable and accurate billing descriptor reduces the likelihood of customers initiating chargebacks due to unrecognized charges.
- Stay Compliant: Ensure that your business complies with card network regulations and industry standards. Adhere to best practices and maintain proper documentation to support your transactions in case of disputes.
3. Keep Your Average Credit Card Charge Low
It is advisable to maintain an average credit card charge below $500 whenever possible. However, it is understandable that in certain situations, you may not want to turn away high-value customers who wish to pay with a credit card. Nonetheless, it’s worth noting that having a high average credit card charge may be viewed as a higher risk factor by payment processors compared to businesses with lower averages.
Get your low cost credit card processing from HTSwipe
HTSwipe provides payment and marketing solutions for businesses of all types and sizes. If you operate a low-risk business such as nail salons, barbershops, convenient stores or restaurants, you might qualify for our low cost credit card processing. We have helped hundred of small business owners to maximize their ROI in a short period of time. Contact us today to see how we can help to lower your monthly credit card processing fees. You could save thousands for your business!
[contact-form-7 404 "Not Found"]