In today’s online credit card processing environment, the way to onboard high risk merchants is through having diverse banking solutions: international, offshore and domestic, and even groundbreaking alternative payment solutions such as crypto currency, gift card payments, and aggregate merchant accounts.
The next best move is to partner with the best online credit card processor that does — a payment processing partner which has a successful history and presence with high risk businesses.
Finding solutions for merchants categorized as high risk is not as easy as it was five years ago. based on what we’ve seen. Partnering with a high risk payment service provider might be the best move, at least for now.
Instabill has a wealth of solutions and resources.
Your own unique co-branded landing page
You don’t need to be in high risk online payment processing to partner with Instabill. You don’t even need to be in the payments industry.
For anyone who wishes to offer payment processing solutions for high risk e-commerce businesses, we make it super easy with our co-branded landing page — as easy as posting a link (prominently) to the page on your website. For merchants who partner with us, we’ll create our co-branded landing page, the link to which merchants post on their site, which we can provide within a business day.
It works like this:
Connected to Instabill’s CRM, our partners share the link to the co-branded landing page with any merchant or party seeking a high risk payment processing solution. The merchant completes and submits the quick form which comes into our CRM as a lead from the partner. Thus, we split the revenue shares with our partner:
- 60 percent revenue shares for leads that process UP TO $1 million in sales per month.
- 70 percent revenue shares for leads that process MORE than $1 million in sales per month.
Has high risk online credit card processing become more difficult?
There is merit to the theory that high risk solutions are harder to come by. With certain changes in the industry, we think acquiring banks have become more hesitant to take on risk as opposed to five years ago. Here’s the evidence:
- Government targeting industries: Though it appears to have run out of steam, Operation Choke Point, the federal government’s effort to extinguish businesses it deemed unsavory, put quite the scare into PSPs and merchants of industries such as payday loans, debt collection and online pharmaceuticals. Operation Choke Point made acquirers uneasy too. Banking services for all three industries can be difficult to obtain.
- Visa chargeback crackdown: Visa’s reduction of its chargeback rates — from 2 percent of sales or 200 chargebacks per month to 1 percent/100 per month — beginning in 2016 created a climate in which only the strong will survive. It is simply short-term pain for long-term gain. Merchants in high chargeback industries have been forced to comply, or simply risk losing their merchant account. While we feel it’s forced merchants to become better business people, acquirers are lukewarm to high-chargeback industries.
- Ever-growing fraud rates: While high risk e-commerce merchants have had no choice but to shore up their customer service skills to lower chargebacks, it’s a similar situation with escalating fraud rates. Acquiring banks are hesitant to take on the risk with businesses such as online pharmaceuticals and nutraceuticals since they tend to be more vulnerable to seedy practices such as transaction laundering. Thus, KYC documents and policies have become more strict.
Instabill has solutions through long partnerships with acquirers
Regardless of the climate of online credit card processing, Instabill has sustained and valued each of its partnerships with domestic, international and offshore banks which continue to offer solutions to high risk merchants. While more KYC documents, rolling reserves and strict policies may be the order of the day, Instabill merchant account managers guide our partners through the onboarding process and serve as your business’s best advocate.
We prefer to begin our partnerships with a telephone conversation at 1-800-530-2444.
