When Instabill signs on a new business, it goes without saying that we want it to succeed and thrive. Unfortunately, not all of them do.
There are a number of reasons why e-commerce startups fail. For 90 percent of them, however, we see two reasons: A high rate of chargebacks and interruptions in cash flow.
1. High Chargebacks
It is more imperative than ever that high risk e-commerce merchants keep their chargeback rates below 1 percent or less than 100 per month. Merchants must understand the entire chargeback process from start to finish. Instabill offers a free online guide for its network of merchants and partners not only to avoid chargebacks, but also to dispute and reverse chargebacks.
There are also webinars available for viewing as well as, if your finances permit it, chargeback management companies that give merchants the tools to mitigate.
2. Volume is Too Low
When e-commerce startup merchants apply for credit card processing with Instabill, we often ask for a projected volume per month so that we can give that projection to the acquiring banks that best fit your needs.
The best advice we can give is to be realistic and conservative. Instabill merchant account managers will work with you and identify your needs to find you the best banking solution possible. E-Commerce startups that succeed start small and grow incrementally.
One More Piece of Advice: Offer ACH Payment Processing
You may not think your business benefits from ACH payment processing, but it can. When a consumer is unable, for whatever reason, to pay for a transaction with a credit card, having the option to process an electronic check is a viable alternative to offer.
Why You Should Talk to Instabill
The ability of processing credit card transactions is simply the beginning of your relationship with Instabill. Our team of merchant account experts is your resource to consult at any time for the life of your partnership.
Need credit card processing? Get the conversation started today at 1-800-318-2713.