If you’re a business, you know how challenging it is to be labeled as a high-risk merchant. With payment processing being a vital part of running your enterprise, not having the right payment processor will put a setback to your operations and even make you less credible in the eyes of consumers.
So, the question is: how can you avoid getting the high-risk merchant label?
- Practice measures that help you reduce the risks for chargebacks.
A high chargeback ratio is one of the biggest reasons for your business being tagged as a high-risk merchant, and one of the best ways to prevent that from happening is through a few safety measures that you could embrace in your system.
For one, you need to be clear about your return, exchange and refund policies and post them prominently on your website and social media platforms. So customers know exactly what to do in case they encounter a problem with your product.
This will prevent customers from thinking that their only option is to call their credit card company and ask for a refund.
- Communicate with your payment processor regularly.
The truth is; you can’t control everything in your business, especially when it comes to processing payments online. But what you can do is keep your payment processor informed on any significant activities in your business, so they will not think of these movements as suspicious.
For instance, if your sales is higher than usual or you’re expecting more customers due to a holiday, it’s best to communicate that with your payment processor to keep them in the loop rather than having them feel that you’re doing anything suspicious.
- Make your website secure.
With so many cases of identity theft and fraud happening online, you can’t compromise your business’ and customers’ security by not protecting your website.
Make sure that you invest in measures that make your website a safe and secure platform where customers can shop and process payments without having to worry about their information being taken and used for fraudulent activities.
- Invest in excellent customer service.
Seasoned entrepreneurs say this time and again because it’s true: you need to invest in your customers. Excellent customer service is still the best way to not only protect your business from being labeled a high-risk merchant but also build your credibility in the industry.
Be sure that your customers can reach you whenever they have questions, queries and concerns about your business. This means putting your contact information in all your product labels and promotional materials.
You may also offer a chat or email feature on your website and most of all, make sure that someone in your team caters to customer service inquiries to avoid disappointments that could easily lead to complaints.
While you can’t control everything that’s going in your business, you still have the power to protect your company from being tagged as high-risk merchant. Follow these tips to help you get started in achieving that goal.