Merchant account solutions and rates vary based on the type of business. There are merchant accounts specifically designed for low risk businesses and those that are designed for high risk businesses. Credit card processing for TV infomercial products and opportunities is one of the many merchant account solutions that fall into the high risk category.
TV infomercial businesses that simply sell products to end users, as well as those that sell a product or service relating to business opportunities, bear a high level of risk. Much of this risk stems from the high volume sales and variables relating to the customer base.
Processing banks consider these businesses high risk and insist that they utilize a high risk merchant account to process their credit card transactions.
If you need credit card processing for TV infomercial products and opportunities, The Transaction Group (TTG) can help. At TTG, we specialize in providing high risk merchant accounts to all types of businesses.
How the business model affects risk:
There are numerous factors that influence the classification of risk by processing banks. The largest is typically its business model. Elements of the business model include:
• products or services offered and sales procedures
• promotional & marketing methods (this is important for telemarketing)
• manner of delivery for products or services
• customer support available
• pricing of goods and services
How chargebacks affect the level of risk with TV infomercial products:
Even with money back and satisfaction guarantees in place, TV infomercial businesses face a high risk of chargebacks by customers. A high chargeback ratio is not only suboptimal for the business itself, but also for the merchant account processor. Processors are penalized with significant fines if the number of chargebacks exceed what is allowed by the card companies (e.g. Visa, MasterCard, etc.). Processors cover this risk by building it into their merchant account rates.
Additional determinants of risk:
After the initial classification, merchant account processors review many variables to get a better idea of the risk associated with the venture. Some of these other factors for TV infomercial products businesses include:
• high ticket products
• offering monthly payment options
• return policies
Your processing history matters:
Without a doubt if you enjoy a decent processing profile, you should be in a better bargaining position with your merchant account service provider. Regardless of a high risk classification, with a good processing record you can find excellent discount rates, and sometimes negotiate lower rates.
For verification, all processors will demand a minimum of three months of recent credit card processing records before providing a rate to high risk businesses. Three months is usually suitable to evaluate chargebacks and refunds associated with a particular business.
No processing history or less than perfect processing history:
Similar to businesses that have a poor transaction history, businesses that hold little or no credit card processing history can still be approved, but at higher rates. It’s important for businesses in these situations to work to improve their records. Establishing a good history over time will allow these businesses to obtain better rates in the future.
How to get approved:
At TTG, we understand the actual challenges that high risk business owners encounter. We know there are no cookie-cutter solutions for high risk merchant accounts. Our company has several partnerships with processing banks in the US and around the globe, enabling us to locate the perfect solution for your TV infomercial products venture.
S0 if you need to set up credit card processing for TV infomercial products and opportunities or are looking for better rates, TTG can help. Click on one of the links below and we will get in touch with you immediately.