Fast, reliable and secure credit card processing for ticket brokers is essential, as these businesses operate in real-time, providing specifically selected tickets of their customers’ choosing.
Ticket brokers like Stubhub, Gotickets, and TicketLiquidator are just a few of the ticket resellers out there. Although they may greatly differ in quality of service and availability of choice seats, they all have one thing in common: a high risk merchant account.
A good option for concert and sport ticket merchant accounts is an online payment gateway. An online payment gateway allows a business to take orders on their website with real-time processing. This provides an instant and secure approval of the customer’s credit card. The customer will not experience any processing delays, ensuring the customer receives the exact seats that they have selected.
At The Transaction Group (TTG), we set up credit card processing for ticket brokers on a regular basis. Although concert and event ticket merchant accounts are considered ‘high risk’, we have solutions in place for these types of businesses. Our solid banking relationships allow us to secure the most competitive rates and provide an easy application and approval process.
Risk and the ticket broker business model:
One of the many concerns which often determine the risk relating to processing charge cards for any business venture will be your business model. So what makes up your business model?
• the type of service your business furnishes or items that you provide
• specifically how you advertise and showcase your enterprise
• your goods and services shipping method
• your consumer support offered
• the retail price associated with your products and services
Should the business model fall within the categories that processing firms determine as risky, you’ll need to set up the processing account through a provider that accepts higher risk business models.
Potential risk areas when considering credit card processing for ticket brokers:
The potential for charge backs may be the most crucial concern in deciding the potential risk of an organization. If a processing company were to allow a business to process credit cards with a significantly greater chargeback ratio than is approved by the card associations, it could receive major penalties. Moreover, if a commercial enterprise produces an excessive amount of chargebacks and it is unable to handle the ensuing debt, the processing financial institution is liable.
Other variables that impact the determination of high risk are:
• credit history
• sales procedures
• product or service offerings
• high average tickets
Your processing history:
If you have a positive processing record, you will have much more influence in bargaining your merchant account processing rates. Regardless that your business may be determined to be high risk, you can still receive fair terms when your company carries a decent track record. Many processors will need to have, at least, 3 to 6 months of recent bank processing statements before they’ll issue a rate for your business. Providers wish to see if your business has experienced a difficulty with charge backs or other challenges – for example, a high refund history.
If your organization has a below average processing record, all is not lost, but it is often more of a struggle to get approved. If you’re fortunate enough to be approved, you’ll probably have to deal with a more costly discount rate.
Your next step:
Here at TTG we understand the actual challenges companies deal with when it comes to acquiring event and sport ticket merchant accounts. We specialize in solutions for high risk businesses and have the ability to provide the most competitive rates for your ticket broker business.
To start processing right away, or to get more information about credit card processing for ticket brokers, feel free to click on one of the links just below.