When you’re in the business of high risk, the last thing you want to do is spend unnecessary time researching your merchant account provider. This is especially true if you’re a new company and don’t yet have a solid customer base.
A B2B high-risk account is one that has a greater chance of chargebacks or fraud. This type of business accepts payments from other companies as opposed to individuals.
Here’s everything you should know:
B2B versus B2C Merchant Accounts
The main differences between B2B and B2C merchant accounts are:
B2B merchants have higher chargeback rates than B2C merchants because they’re dealing with larger transactions and more frequent disputes over products and services they’ve sold to other businesses.
High-risk merchants may also have more fraudster customers who try to steal their payment processing accounts by filing false chargebacks against them.
The fees associated with accepting payments are usually lower for B2C merchants because they typically don’t process as many transactions per month as a B2B merchant would.
However, some B2C merchants do have high transaction volumes and therefore pay higher processing fees than others who don’t accept as many payments each month.
Crucial Considerations When Choosing a B2B Merchant Account
Here are some things to consider when looking for a B2B high-risk merchant account:
- Look for an EMV-compatible processor that offers chip card acceptance.
- Find out if there are any set-up fees or other hidden costs that could change the price quoted on their website.
- Find out about their refund policy, especially if there are refunds left over after a chargeback dispute with your bank or credit card issuer.
Also, check their customer service record and call center accessibility. Is it toll-free? Are they available 24/7? What is the average wait time? Do they offer live chat? Do they have a phone number listed on their website’s homepage?
Last Words on Understanding B2B Merchant Accounts
High-risk accounts are important for online businesses because they help merchants take payments with minimal risks.
If you don’t understand what makes a high-risk account, then you’ll never be able to prevent chargebacks from occurring or protect yourself against fraudsters who want nothing more than your money and personal information.
Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest-rated high-risk merchant account processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.