Payment processors can be wary of businesses that have very high average transaction charges as they represent risk to the credit card processor. If a consumer is unsatisfied for any reason, including buyers remorse, they are much more likely to do something about it when the item is costly compared to if the consumer spent only a small amount. Returns and charge backs will happen on big ticket items. Large transactions are also risky for processing companies because of the possibility of fraud. Restricted products such as pharmaceuticals or adult themed business's pose additional liabilities as well.
Business owners are 100% liable for their merchant account so it is imperative your customers have a convenient way to contact you regarding their charges. Dissatisfied customers may lead to charge backs so we always recommend using a 3rd party charge back mitigation solution to reduce your risk. Mitigation can catch 97% of disputes before they happen and give you a 24 hour window to resolve the dispute with your customer. You can refund your customer or come to an agreement to have the customer cancel the dispute with their bank and avoid the charge back completely. No solution is 100% effective but we can guide your company in the right direction and reduce your exposure for disputes.
Avoid estimating your ticket size and monthly volume lower than you expect it to be. Credit card processing companies ask on their merchant account applications what you expect your average transaction size will be as well as your monthly charge total. Should you regularly exceed the amounts you gave on your application by a large margin your merchant account risks being suspended or shut down permanently.
Granite Merchant Services specializes in credit card processing for high risk businesses and has the experience and expertise to help your business find and keep the right high risk merchant account . We have successfully placed MOTO (Mail order Telephone Order), eCommerce, restricted products merchants and Level 3 processing clients with long term solutions that will grow with their needs.