Big Name Third-Party Processing
A lot of businesses face the issue of big processors like Square and Stripe terminating their account with little to no notice and very little explanation, leaving them to find a new processor for their company suddenly.
These events can often times happen due to the fact that these companies can determine a business processing with them as selling prohibited items and terminate their account, after they have been signed on and started processing. This is solely up to their discretion and often times they don’t properly vet their clients before approving them for an account.
They also reserve the right to change a payout schedule and suspend payouts to a merchant’s bank account at their discretion. These big names often time do a poor job of explaining their terms and conditions upfront, as well as don’t have easily accessible customer service to process requests to dispute their termination or hold.
What to do when your account has been terminated
If your account is terminated, you’ll need to find a new payment processor fast. Unfortunately, this will likely be a challenge, as your company might be listed in the terminated merchant file (TMF), also known as the MATCH (Member Alert to Control High-Risk) list, maintained by MasterCard to easily identify high-risk merchants to other payment processors.
T1 Payments specializes in high-risk businesses and is your best defense against having your merchant account terminated or frozen unexpectedly. T1 Payments may be able to help you get back to business fast and stay in business after your account has been terminated, with services like chargeback prevention and fraud protection. T1 provides flat fee merchant accounts and offers comprehensive account monitoring, reporting and support to help high-risk merchants mitigate chargebacks, fraud and other business risks. Our customer support team members are the best in the business and available 24/7.
It’s important to work with a processor who puts your needs firsts and has your company staying online and processing for customers, as a priority. Don’t make the mistake of signing up for a merchant account with a third-party processor that doesn’t do business with your industry – you may get away with it for awhile, but sooner or later your account will almost certainly be frozen or closed.
Comprehensive High-Risk Payment Processing Solutions
T1 Payments offers a customizable, end-to-end solution for high-risk ecommerce businesses. Whether you’re an experienced online merchant, or are struggling to find a payment processor who will work with your high-risk business – T1 Payments can help you. We’ll get you up and running fast, and then we’ll help keep your company profitable with services to protect you from fraud and chargebacks, personalized support to answer your questions, and a commitment to ensuring your complete satisfaction as your business grows and prospers.
Why We Work With High-Risk Businesses
We feel that everyone deserves a chance to succeed. And our decades of experience in global payment processing also enables us to reduce many of the risks typically associated with industries such as:
- Adult Entertainment
- Online Dating
- Multi-Level Marketing
- Fantasy Sports
- Collection Agencies
What’s So Risky About My Business?
High-risk businesses typically are rejected by banks and other payment processors primarily because companies working in the industries listed above have a higher-than-average chance of experiencing:
- Payment card fraud
- Product returns/refunds
- Out-of-country sales
There are other problems that can result in a business being classified as high risk, including the owner’s own financial history and how long the company has been in business.
All of these issues are problematic, as they complicate predictive analysis regarding projected cash flow, cause unexpected loses, and take time to reconcile. But as noted above many of these concerns can be mitigated with expertise in the high-risk business space teamed with the right technology solutions.
T1 Payments offers a comprehensive service offering – including risk management, chargeback protection, and advanced fraud monitoring – which we can tailor for any high-risk business’ needs. This enables us to easily work with vendors that would otherwise have a very difficult time finding a payment processor. And we are typically able to work with businesses that other service providers have refused. But why waste time being rejected? Come to T1 Payments first.
Affordable High-Risk Payment Processing
When a business is classified as high-risk, just getting paid for goods and/or services can become a very expensive proposition. Why? Because you pay for exposing other companies to risks associated with your business. To protect themselves against their potential losses, financial service providers may charge fees for onboarding an account, excessive costs for chargeback and fraud monitoring services, higher rates for processing chargebacks, big reserves held on payments, and higher costs all around for every necessary service make it much harder to maintain cash flow and profitability.
It is true that a high-risk business needs more sophisticated solutions to protect that business – and its payment partner – against loss. This naturally results in higher costs. But excessive costs are unacceptable and unfair. At T1 Payments, we want our customers to succeed and grow. And our customers often choose to continue to work with T1 Payments even after they have established a business that can easily qualify for a lower-risk classification.
What You Should Expect From A High-Risk Payment Processor
Don’t lower your expectations simply because your business is classified as high-risk. Not only do you need all the capabilities and data security protections any online vendor requires, you also need payment procession solutions that will minimize your exposure to fraud and help mitigate potential problems typically associated with your industry. These services include:
Flexible Underwriting: Underwriting, in the context of ecommerce, refers to the policies a Payment Processor and other financial firms use to vet a merchant to determine whether they want to do business with that merchant. Ideally you want a Payment Processor who has a thoughtful approach to vetting, and looks at the big picture rather than automatically rejecting an account due to issues that are typical in particular industries. T1 Payments is known for being flexible regarding our underwriting process. We’re also fast – you’ll get an answer regarding your account application quickly.
Full-Service Solution: Look for a Payment Processor who provides a comprehensive service offering so that you don’t have to apply for multiple accounts, pass multiple vetting processes, and figure out what works with what and what doesn’t work at all on your own. Piecing together your own solution can ramp up both your costs and inefficiencies – plus, what business owner has the time to properly research all of the possible providers and solutions? With T1 Payments, our e-commerce, mobile, and MOTO (Mail Order/Telephone Order) customers all gain easy access to all the most popular shopping cart solutions, a secure payment gateway, active account monitoring with fraud scrubs and real-time online reporting.
No Lock-In: You also want an easily deployed solution that doesn’t limit you to specific platforms or requires you to purchase and maintain specific software. With T1 Payments, no special software is required.
Solid Customer Support: Obviously, you want to work with a Payment Processor who provides caring, informed and motivated support. There’s nothing more frustrating than listening to a “customer care” rep slowly reading through a prepared support script when your site isn’t functioning and you’re losing sales. Look for a Payment Processor with a dedicated in-house support team that is empowered to fix problems, rather than simply escalate you up the support tiers until you happen to connect with someone who has a clue.
Data Protection: Any service provider who handles payment card data must be fully in compliance with “The Payment Card Industry Data Security Standard” (PCI DSS, commonly called PCI). The current version of PCI is v3.2. These standards were designed to help ensure that the data is protected when it is collected, in transit and in storage. PCI is a shared responsibly – another reason why it is good to work with a Payment Processor who offers and end-to-end solution. Your Payment Processor should ensure that the entire payment chain service offered is certified as a PCI Level 1 Service Provider. Level 1 is the most rigorous tier of data security as defined by PCI. If you work with a company that does not comply with PCI, you may face big fines and other financial penalties as well as lose your company’s ability to accept credit/debit cards.
Flat Fee Merchant Account: You’ll also want a Payment Processor that can provide you with a flat fee merchant account. A flat fee account charges you a pre-determined flat monthly fee and a flat per-transaction fee instead of a percentage of your monthly sales volume. With a flat fee merchant account, you can predict your expenses and grow your sales without paying a financial penalty for your success.
T1 Payments specializes in meeting the needs of high-risk merchants, providing a full suite of Payment Processing and Payment Gateway services that integrate with over 175 different shopping carts. T1 also provides flat fee merchant accounts, complies fully with PCI, and offers comprehensive account monitoring, reporting and support to help high-risk merchants avoid chargebacks, fraud and other business risks. And our customer support team members are the best in the business.
To find out more about our customizable global payment solutions for high-risk merchants please visit t1payments.com or call 866-518-2216.
Payment Processor vs. Payment Gateway
Being a business owner, you’ve most likely heard the terms payment processor and payment gateway and wondered what the difference is. Each one differs in its role but is still vital in accepting payments online.
A payment gateway authorizes payments for e-commerce websites in a secure way. It acts as an online sales terminal for your business. When you sign up for a merchant account, a payment gateway may or may not be offered to you.
What is a payment processor? Basically, the payment processor, such as T1 Payments executes the transaction by transmitting data between the merchant: the issuing bank (i.e., the bank that issued your customer’s credit care); and the acquiring bank (i.e., your bank).
T1 Payments is an all-in-one provider, meaning we have our own payment gateway that is available to our merchant account holders. Using a payment gateway to securely process payments can reduce errors, soften reconciliation and speed up transaction processing. It’s the best choice for your ecommerce websites.
So, now you know that your e-commerce site needs to process payments and that’ll mean you’ll need a payment gateway as well. Some providers go through a third-party payment gateway leaving you to deal a shady third-party company when a problem arises. T1 Payments makes it simple by providing everything you need from a single provider with some of the lowest payment processing rates, 24/7 customer service, and PCI-compliant processing.
What is an Offshore Payment Processor?
An offshore payment processor, or offshore merchant, is an online account that is able to process debit and credit card transactions overseas. This type of processor is used mostly for business in the U.S. that are considered high-risk vendors. These vendors have a harder time being approved for more traditional payment processors, due to chargebacks, fraud or the industry they are associated with.
By using an offshore payment merchant account, these companies are able to process their company’s transactions, are afforded certain tax incentives, and still have security measures in place that help prevent chargebacks, as well as fraudulent transactions.
Benefits of an Offshore Payment Processor
There are multiple benefits to processing payments overseas. As previously mentioned, there are certain tax benefits to processing your payments offshore. Moreover, merchants are able to process payments in multiple currencies, as well as different credit card providers. This allows businesses to expand their customer base to other countries, and in doing so increase their overall productivity. Another benefit is having an encrypted and secure credit card processor. Just because the transaction is being processed overseas, doesn’t mean vendors will be losing out on certain security measures. These offshore merchant accounts still have security measures in place to help prevent fraud and chargebacks.
For many high-risk merchants, an offshore payment processor may seem like the perfect solution to their payment processing problem. However, using an overseas merchant account to process payments does come with it’s own drawbacks. The most common concern for many U.S. vendors who use an offshore processor is the lack of oversight there is with overseas processors. United States law does not govern banks based outside the country. That’s why if vendors are going to use an offshore payment processor, it is best to go with a company who is reputable and who has higher standards of customer service and security.