Contrary to all the latest Reality TV hype with shows like Pawn Stars and Pawn Kings, pawn shops are nothing new. Pawnbrokers have been in the business of supplying secured loans for personal property since the Ancient Greek and Roman Empires. What is relatively new, however, is credit card processing for pawn shops.
In most cases, customers that bring goods to a pawn shop end up choosing to sell the items outright, rather than accepting a secured loan against their items. With an abundance of goods now in possession of the pawnbroker, it becomes an important aspect of the business model to quickly sell the items to other customers. The ability to accept credit card payments through a pawn store merchant account is not only an added convenience for customers but also a sure way to move goods faster.
Some pawnbrokers have recently opened online stores in order to reach a broader customer base and ultimately expand the business. For these pawn shops venturing into virtual world, a pawn store merchant account is essential.
Due to the nature of the business and the relative risk of acquiring stolen goods, banks consider pawn shops to be high risk merchants. Both online and brick and mortar stores will need a high risk merchant account for credit card processing for pawn shops. Although it works well with small, low risk online businesses, Pay Pal does not accept high risk businesses.
Obtaining a high risk merchant account isn’t difficult, but make take a little time. It is advised that a merchant do some homework and become somewhat familiar with the rates and fees associated with a high risk merchant account, as some processors fail to mention details in order to quickly lock a business into a contract.
At The Transaction Group, we work with many high risk businesses, including pawn shops. We will take the time to let you know what to expect with a high risk merchant account, answer all your questions, and work to get you the best rates through one of our many partnering banks.
If you are interested in a high risk merchant account for your pawn store, call us at 888-383-8056.