Any business that is planning to sell a service or a product must have a way to collect funds from customers. Those who only collect cash or checks can get by with only opening a business checking account. Those businesses who wish to take credit or debit card payments must open a merchant account to process those payments for them. When a business is new, it may not realize that they are losing out on a significant amount of income by limiting themselves to only collecting cash or checks.
The business owner may look at the costs of adding a merchant account and may believe that they cannot afford to pay a monthly fee for the service. Merchant account services can be expensive if the volume of sales is low. A new business may not believe that they will be able to justify the cost of the service. Some statistics show that by offering shoppers the chance to use a credit or debit card, the ticket sale total can increase up to 30 percent. If an average ticket price with cash is 25 dollars, then the average credit slip can raise to over 32 dollars. While there are fees attached to the processing of the credit slips, the increase in profit will more than make up the difference.
Some businesses want to offer credit and debit cards, but have a hard time finding a processor that can accommodate their product line. Merchant accounts can be strict in what they allow a business to sell, so businesses that sell non-standard items like e-cigarettes may find themselves restricted from doing business through credit and debit. In addition, businesses that sell firearms or are so successful that they have high volume may find themselves hindered by restrictions. Some merchant accounts are so strict that they limit the amount of sales a business can have in one day. That is detrimental to the survival of the business and counterproductive to the whole idea of free market.
The way to eliminate those restrictions is to pair up with a merchant account that understands the nature of those types of businesses. A merchant account that specializes in high-risk credit and debit processing will be able to help those types of businesses process payments.
If you are a business that has run into restrictions, then get started with a High Risk Merchant Account today and keep your rates low with The High Risk Guys!