There are several “legal” businesses in the market but due to the nature of the business that the product or services they provide are such that the business is categorized as a high-risk business. Similarly “Escort” is booming in the environment. In this industry and agency, people, especially women, are hired to accompany them for entertainment purposes.
Bankers frown at the mere mention of the word “escort.” It’s no surprise that banks refuse to process it because the business is too risky, with a high rate of chargebacks and a bad reputation. Because this type of service is strictly confidential, chargebacks do occur. The customer is most likely concealing his or her behavior from family and friends. Customers have been known to make these transactions using stolen credit cards. Money laundering is the result of this. Even merchants have been known to use their websites as a front for money laundering or even illegal prostitution.
3-6 months of payment processing statements showing total sales, refunds/returns, and chargeback requests with the company name;
3 months of bank statements from your business;
Incorporation certificate This document establishes your company’s legal status. This certificate is issued by a state governmental entity or corporation.
Certificate of Incumbency
All company officers and owners must have copies of valid passports with visible bearer signatures.
Application.
Payment methods escort merchants prefer are just like any other businesses. Geo-preferences should guide escort businesspeople. Aside from local payment methods that vary by country, consider the following options:
It can be difficult to find the right escort merchant account. It’s critical to do your homework and read the contract’s terms and conditions carefully. Providing documentation that clearly demonstrates that you are running a legal business is also essential. A knowledgeable merchant provider who specializes in escort merchant services can point you in the right direction.
Finding an escort merchant account can be time-consuming and difficult. However, if you arrive at the right door with the proper documents and application, you will be successful. Your only solution for a merchant account for your escort business is a high-risk merchant service provider.
Radiant Pay aims to provide lower rates and more secure processing options. It is a leading company, that specializes in tailor-made payment processing solutions in London, UK, for a variety of industries and risk levels, including escort services.
Chargeback is a dispute raised by a cardholder directly from their bank for the return of payment or reversal of a credit card transaction. It is very different from that of return of sale as this comes directly from the cardholder’s bank and is processed via the Payment Gateway to the merchant.
Chargebacks were brought into the picture to protect the buyer from businesses selling subpar products or services or performing unethical activities.
Difference between a Chargeback and Refund.
Although from the customer’s point of view it seems to be the same. But from a merchant’s point of view, the chargeback comes with the additional fee along with the product or service cost amount. In refund, a merchant directly refunds the amount to the customer using his merchant account, whereas in chargeback the issuing bank presses the administrative charges.
3 Types of Chargebacks / Fraud
True fraud
Under this category, unauthorized transactions take place. The cardholder is completely unaware that the card is used to benefit products or services, this means theft has occurred. Here when the cardholder files a chargeback it results in discontinuation of the credit card number first and a new card with a new number is issued.
In this case, the cardholder is encouraged to approach their bank first rather than getting in touch with the merchant to resolve the issue.
Chargeback fraud
Here the cardholder is a deceitful customer having ill intent. He is trying to get away with that, which is by not paying for a product or a service that they have truly ordered or purchased. The cardholder’s ill intent is the reason behind the chargeback.
Even though the business has rightfully delivered the products or catered the services as described, the consumer will file a chargeback dispute so that he/she can avail of it for free and not pay for it. Business owners have to then play defense by proving their case in the process. This in reality is daunting because the cardholder is unethically trying to take advantage of the protection policy and going against the very nature or reason behind bringing this policy into existence. The policy is supposed to provide protection but they’re abusing it.
Friendly fraud
The cardholder issues a chargeback due to an honest mistake. The cardholder issues chargeback with no malicious intent. It could be due to common, honest mistakes or errors like forgetfulness, being unclear of what they purchased, not recognizing a charge, delays in shipping, or the consumer not receiving a product along with many other scenarios, here’s a quick shortlist of why chargebacks could occur.
Not receiving the item
Received incomplete/partial item.
Damaged item or not in compliance with description
They thought they were billed the incorrect amount
Child making purchase on parents credit card without their knowledge
Forgot about the purchase or someone else was authorized to use their credit but didn’t tell them.
Friendly fraud is mainly related to miscommunication or misinformation on either or both parties.
The chargeback process is made to favor the customer so you should necessarily know the process and best equip yourself before keeping your side safe and winning a dispute when you are caught in a chargeback situation. Presenting basic documents is enough and can help you win, additionally, you must gather as much information about the customer as possible at the point of purchase to prevent and protect yourself in future chargeback situations. By doing this step you are ensuring that you gather proofs if required to present.
Chargeback Process
The cardholder calls their bank
The customer calls their bank to initiate and file the chargeback and states their reason for doing so. And while filing they attach their evidence to support their claim.
Bank Review
In this step, the bank reviews the application submitted and verifies its legitimacy and depending upon the results approves or rejects the issues disputed as an invalid disputes.
Credit of amount
The cardholder bank on approval gives credit to the consumer on their credit card immediately.
Issuing chargeback to the card network
The fourth step includes formally issuing chargeback to the credit-card networks and a fee is also charged.
Receiving chargeback
The merchant account processor (acquirer) receives the chargeback and notifies the business via Payment Gateway and other dedicated communication channels. It requests the merchant to display the proof of purchase. This is the right place where a business owner can submit his records as evidence of purchase. Here’s a list of proof you can provide,
Printed receipt
Signed contract
Transaction details from merchant’s portal
Stamp verifying date and time of purchase.
Signature of cardholder
Choice of business owner
Here the business sometimes just lets go of the chargeback, the process ends but also at the same time the business owner is found at fault.
If the owner chooses to reply then will be required to provide proof of purchase to fight against the chargeback
Submission of documents
The business owner or the merchant then provides the documents displaying proof of purchase to the card-issuing bank.
Upon the result of a dispute in whose favor it is either cardholder or merchant, either party can file a chargeback if not satisfied with the results, only if you have strong supporting documents otherwise it will result in a huge penalty.
Conclusion
The robust, effective payment gateway can help any business to prevent chargeback to a considerable amount along with the smooth functioning of payment transfers. Radiant Pay is a leading Payment Solution Service Provider that understands your needs according to the type of business you deal in and offers you suitable services.
Radiant Pay is the global leading payment processing service provider, for business of all industries. It helps merchants to serve their customers as soon as possible by completing the financial transaction instantly. Radiant Pay offers the merchant and its customers flexibility of payment processing through secure and innovative services who have e-commerce presence or want to take it online. The service permits an online buyer to make a financial transaction at its comfort and within a few clicks.
Expert team at Radiant Pay, will help you with tailored Merchant Account Solutions of all types to all high-risk or low risk businesses, which will facilitate you to accept and process the electronic payment card transactions
Benefits of having a Merchant Account:
The travel industry is deemed to be a booming industry accounting for worldwide GDP and employing millions of people. As travelers around the globe, these days opt for online payment methods mainly using cards and other alternative payment processing methods.
We at Radiant Pay provide you with a beneficial, advanced, and transparent account. Here we have just the right payment processing solution to accelerate the success of your business.
High-level security
With the reputation of credit and debit card scams in the travel industry, the need for security is satisfied with effective, safe, and reliable payment processing solutions for the travel business. With it, you can make sure that you and your customers both are protected from scams.
Increased Trust
By having a trustworthy travel – merchant account you provide a safe and secure payment portal on your website. Money is an integral part of everyone’s lives, when customers experience the safety of the mechanism the trust is automatically elevated.
Increased customer satisfaction
It gives ease and freedom to the customers in selecting the payment method among multiple options. Today’s customer demands freedom of making choices of when and how they want to spend their money. By catering to the demands you can increase customer satisfaction or delight them.
Increased Sale and Reach
Today a customer can have full control over the travel plans. With the privilege of convenience provided by Google, he/she can simply search, compare and book flights, hotels. Here, the merchant account plays an important role by giving you (the business) to achieve this.
Accept Cards
Using plastic money has become the new normal. The merchant account benefits by accepting credit cards and debit cards. It reduces the resistance of the payment transaction.
If you are new in the industry or looking forward to excellence and have reached here, you are at the right place. Radiant Pay is here to help you skyrocket your business success by helping you build an online merchant account setup.
The high-risk business category is hard to approved businesses for a standard merchant account. The first thing to consider about high-risk business is that the processor you are choosing will determine whether you fall under their high-risk categories when you apply for merchant account services. Every processor will set a unique set of guidelines to determining whether your business dimmed in the high-risk category. Merchants who own pornography websites, online gaming business, and casinos always fall under high-risk business, while others may or may not be depending on your processor.
Many merchant account service providers have a strict guideline for determining the status of your business, but there are many others who have relaxed criteria. Merchant provider treats high-risk businesses in a different way according to their guidelines. High-risk merchant account provider charges high fees due to the high-risk factor they are accepting by giving you a merchant account.
Business Category Fall Under High-Risk
High-chargebacks and Fraud Rates – if your business shows high chargebacks and fraud rates you probably fall under the high-risk business category.
Offshore businesses flagged as high-risk if you sell your product and services to US Customer while operating business from another country.
The important factor associated with the high-risk business is the product and services you are selling. The online businesses come under high-risk are adult entertainment sites, drugs, and pharma websites, online dating sites, lotteries sites etc.
If your business accepting high volume sales through credit cards, you should be considered as high-risk.
Considering that qualifying payment by credit card is vital to the success of your business, you have no choice but to give in to the demands of merchant service providers. However, as always, choose a reputable merchant service provider wisely and make sure you are not being thrown in fraud.
High-Risk Merchant Accounts www.radiantpay.com get detailed information about high-risk merchant accounts, high-risk offshore merchant accounts and more.
Every business owner wants to have a merchant account for the globalization of business. To do this, various merchant account providers are there in the market that put their all effort to meet the ends. The account provider companies provide all the information at one place regarding, high-risk business, merchant account, payment processing, managing those account, and debit and credit card processing. Now the question arises how to apply or get a merchant account. The basic question that every trader asks—at least in theory, people want to read about it. Here is a solution—apply with the merchant account provider. They will complete all the procedure for application; deliver it to the underwriting department for application review, once the application is approved, you will give authority to receive online payment.
The above process sounds very easy but finding a high-risk merchant account provider for the business is quite a difficult task. Most banks and processors deny offering merchant accounts—so you need to find high-risk merchant account provider.
How to Find Merchant Account Provider
If you are an owner of the retail shop, almost every bank and merchant account processor will give you access of merchant account but if your business falls under high-risk category—no one will show up. Therefore, banks will provide merchant account to the retail business as per the regulatory. You need to ask a simple question to the bank—do you provide merchant accounts for high-risk businesses. Moreover, note down their answer because often salesperson do false promise but when you fulfill all the application, their underwriting department will reject it.
Hence, there is various high-risk merchant account providers are there in the market—you need to search for them or ask from banks.
A high-risk merchant account is kind of bank account for online or offline business to accept payment through credit card. In order to accept the card payment, a businessperson needs to have internet merchant account in any financial institution. However, there are various types of businesses applying for merchant account—this affects the risks associated with it. The risk is high because some companies are at high-risk in their business. That is the reason payment processing is defined as risky for some online businesses.
Hence, few factors are there that define high-risk merchant processing—however, the main reason is merchant’s real and anticipated chargebacks, payment processing unit, and merchandise return. To be very frank, not all merchant service providers accept high-risk clients.
What Is High-Risk Merchant Processing? One must need to have merchant account before accepting online payment through cards. Online merchant accounts can be divided into two categories—low risk and high risk.
If the business is at low risk, them account provider will easily accept you and offer various services. On the other hand, if the business is at high-risk in terms of unconventional processing and history of other payment services who do not want to give payment access.
High-Risk Business Model Risks The business is risked with high chargeback fees, high processing fee, and other risks like sales of products and services, the safe transaction of every kind of money etc. these are the common parameters for applying merchant account. Whenever a merchant account provider knows about any fishy activity from merchant’s side, they will put additional protective layer against unexpected activities from merchant’s side.
If there is a high-risk business, the best solution is to maintain a relationship with online payment gateway specialized for risky businesses. Such provider will guide in monitoring suspicious transactions, potential threats, and fight chargebacks on daily basis.
The online shopping sites are growing popular in the market. The international customers are purchasing the products online. So the multi-currency payment is the perfect solution that allows the foreign buyers to purchase the goods easily. It is the simple way to improve the sales from the international customer. We offer different payment process solution to risk merchants. It helps to improve the sales without more effort. You can accept all country currency and improve the orders from the foreign shoppers by adding the multi-currency payment to the checkout page.
Get quick approval for risky business account
Are you looking for the best place for applying the risky business account? Then it is the right place. We have a lot of the experience in the field so we provide the first-class services to our customers. You can get the Multi-currency payment for your business that keeps your business safe. It helps to improve the payment process for your business. We provide 24/7 hours customer service for long-term satisfaction. With the help of the multi-currency account, the business owner can display the product price in currency there the customer is located. We provide the affordable multi-currency processing and settlements to our clients.
Benefits of Multi-currency payment
The Multi-currency payment is the great feature of the online store gateway. It accepts the payment process and receives the settlement in the currencies choice. You can gain more benefit by using the Multi-currency payment such as improve sales, reduce expenses of processing, great cloud reporting, automatically load balance and others. The multi-currency account helps to load the balance automatically. The Multi-currency Processing with the international retailer account reduces the processing expended and foreign currency exchange risk. It provides the best online shopping experience to the international customers.
Getting High-risk merchant account seems a process to undergo with hassle documentation. A merchant who needs a High-risk merchant account for the smooth working of business may fall in many empty promises by companies and merchant account provider like, low transaction fees, instant approval, free integration and use of payment gateway services. 5 Points need to watch when signing up High-risk Merchant Account
Minimum Price – price is being the first concern when selecting the merchant account. Almost every merchant wants the best deals and reasonable price. Web sites with popping up advertising low rates, free transaction merchant account diverting minds of many merchants looking for merchant account services. But remember all this are warning sign, you may be misguided by paying low at first, but corrupt providers charge high-volume backend fees. Find a reliable merchant whose track record is good and giant’s approval on many factors such as the product/service, payment acceptance method, chargeback rate, and volume.2. Hidden Fees – Before signing up you deserves to know about all the processing fees to be charged and why you are been charging. Some common fees for a merchant account are transaction fees, chargeback and refund fee, discount rate and monthly statement fee from acquiring a bank. Be cautious of any other extra related fee which seems unwanted and gives you greedy earnings.
3. Extra Rewards – Many merchants provides cash back offers and unwanted deals or signing bonus, but these are only fake promises and later hit you with other fees and charges. Proceeding with reliable merchant account provider having a sound image will drop you in safe hand.
4. Free Services – it is good to offer free aftercare services and some extra perks, but merchants should be cautious that it is a catch.
5. Instant Approvals – it is not possible, instant approval for a high-risk merchant account. Such types of business need complex documentation to get approval for a merchant account from merchant acquiring a bank. Banks want to see a list of KYC documents before they grant an approval.
Any Business Venture has a little amount of risk associated with it, but there are certain business that considered as high risk such as online gambling, travel agency, Pharmaceuticals, Telemarketing Services, Real Estate, Software Downloads, International Shipping, Fantasy Sports Websites, Online pharmacies, Dating websites, ISP and Hosting Services and High-volume E-commerce Businesses these type of businesses need special account called high risk merchant account.
Now what is high risk credit card processing and how can I lower my cost on such processing?
For accepting card payments your business require high risk payment solutions it require when your business deemed as risky. Some merchants operates this account overseas while some have their own payment processor. Many banks and underwriters avoid these because of perceived risks. This type of account charge higher fees and interest rate is also high compared to standard accounts. To lower the risk of processing cost merchants should carefully notice these points-
Avoid transaction limits – Companies offer your account with transaction limits that are presets, once your business get start and you are doing transaction in high volume they will charge a penalty fees to exceed the limits of transaction. These may take your profit margin down, its suggested always look for an account that gives unlimited transaction volumes. Select the most appropriate that gives you freedom to explore globally.
Read company overview – Select most reliable and trusted processor to partner with your business. Though you are high risk merchant, they are charging high rates. Select the processor that corporate with your terms and conditions. Research every minute detail about that payment processing company you are signing up.
Get the services that you need – Choose the processor that fulfills your business needs and give best services to run your business with fair practices. You should also receive the right terminals and solutions for your business at affordable pricing.
Security is prior – Secure payment gateway and virtual terminal are integral part of any business entity. When processing online your processor comes with high tech security with data encryption system to protect the interest of the customers. Select payment processor that offer various card processing with real time reporting because customers pay with many different cards as they like. Customer’s interest protection should be the prior task of your company.