Understanding High-Risk Business – Merchant Stronghold

You are most likely wondering what a high risk business is. if you arrived on this page. This is a term that you can find very often in the financial world and it does bring in front quite a lot of challenge even for the industry professionals. We are here to eliminate the shroud and offer you a great solution!

One thing you need to know is that high risk businesses are operating within a high risk industry most of the time. The industry doesn’t have lots of customers or it has plenty of competition and its sales and dwindling to say the least. You will also see that most of the high risk businesses have financial troubles, with various problems like company viability and the inability to get financing, merchant accounts and so on.

Yes, a high risk business will have a hard time getting a merchant account, although there are high risk merchant accounts that can be acquired at times. It’s important to note that such a business can have a hard time getting online payments just because acquiring a merchant account is quite demanding. The high risk factors included here are a large number of chargebacks, refunds and so on, credit card fraud as well as companies that have a very high number of non-fatal or even fatal accidents to begin with.

Moreover, there are businesses that don’t comply with the regulations and requirements requested by the local law. This is very important and it does bring in quite a lot of trouble to begin with.

Since a business is seen as a high risk one, it does have to deal with plenty of consequences. The first one would obviously be dealing with a very high loan rate. This is very challenging and many times it can be quite problematic to begin with.

Of course, working with a high risk business doesn’t bode well even for some major companies as well, which is very challenging for sure. It might be very problematic at first, so you should just try and avoid that to begin with. Yes, it will be problematic to deal with this type of business because not that many want to focus on working with companies that are in debt. This doesn’t really seem to bring in front a lot of trust and that’s why most high risk businesses tend to be avoided. They also tend to have a bad reputation in the industry and that can hamper their potential partners to begin with.

Plus, you won’t be able to get a merchant account which is even worse to say the least. All of these combined do show that high risk businesses will have quite a challenge when it comes to finding good partners and working with them in the long run. It will not be easy for sure, but that’s the reason why you have to eliminate debt and focus on optimizing everything. Yes it will be challenging but it can be very rewarding too!.

Contact Merchant Stronghold at the toll-free number +1(888) 622-6875. And get hold of an expert for the resolution of the issues that you are facing. Also, we provide specialized support to the high-risk merchants, credit card processing, and merchant account issues. Place a call at the toll-free number +1(888) 622-6875 or try our 24/7- email support.

Why Your Small Business Needs A Merchant Account?

Merchant Account For Small Business

If you have a small business and you need a merchant account. Providing multiple payment options to your customers has proven to enhance sale and offer a lot more opportunities for a Small Business. Small business credit card processing is all about the secure platform for the customers. One of the crucial steps for any business is choosing a merchant account provider. If you are running a mall then cash only approach may work, but according to research, companies may miss the sale because many customers want to do online shopping. According to the latest research by Javelin Strategy and Research, online payments methods have outplaced cash only approach.

Credit Card Acceptance: Accept Visa, MasterCard, American Express and Discover

Nowadays only a few people carry cash, rests rely on credit cards. There are only four major card brands through, Visa, MasterCard, American Express and Discover. For a small business, credit card processing is incredibly important. By providing multiple payment methods, a company is likely to attract a large number of customers from around the globe. Credit card payment makes purchase process secure and easy for customers, and it also helps business to keep the record of sales.

Why your small business needs a merchant account?

The most effortless path for small business to accept credit card is via merchant accounts. A merchant who needs to extend business to reach wide audience requires a payment gateway. Merchant accounts have tools that can accept any type of card via a virtual terminal. Any business can integrate more than one payment methods on their online e-commerce site. When a merchant provider is done setting up the account, accepting credit cards becomes easier for business owners.

Merchant Stronghold Is The Right Choice

Many merchants think that it is expensive to accept cards, but this is not always the case. Some merchant account providers such as Merchant Stronghold, A leading Payment Gateway Provider which provides competitive rates so that small businesses can succeed by offering multiple payment options to their customers.

Merchant Stronghold speaks with every small business owner to explain them everything, we also guide them to handle their merchant account. There is a variety of choices offered to merchants to make it simple and secure for their customers. Merchants can access their account via mobile and other platforms. Merchants also get 24/7 customer support to keep the business running smoothly. We use the latest technology to ensure merchants are happy and their business is safe from frauds. You can contact us and we will help drive your business to new heights.

How To Deal With Common Merchant Account Complaints?

While running a business and at the same time managing it, there could be a chance of getting customer issues. The same thing happens while processing the payments. There are many issues reported every year that has particularly mentioned payment related errors. These issues occur due to the merchant’s ignorance and other times due to payment-related errors.

Every year, a plethora of complaints are registers that badly affect the business of the merchant. In this article, we have listed the Common Merchant Account Complaints and the tricks to avoid such issues in your organization. This article can help you look at both potential risks and rewards of working with a given company.

Poor Customer Service

Now your business and payment processing system cannot be perfect every time. And customer faces an issue with the management. At those times, it is the responsibility of the customer service team to provide the demanded attention to a specific topic.
But if the customer support is unable to offer the desired support then the customer has no other option but to avoid the company.

• In such a case, you need to stabilize your customer support service.
• Tracking your product and customer reviews should be evaluated.
• You should take some time to minimize the customer waiting time.
• And nobody wants to listen to the automated answering service.

For more information and guidance you can contact Merchant Stronghold at the toll-free number +1(888) 622-6875.

Cancellation Issues

This is one of the frustrating Common Merchant Account Complaints faced by the customers. Many times we order a product or service by mistake. In that case, you immediately try to cancel the order on the company’s website.

• It is difficult to distinguish between the mistakes and the frauds for a merchant.
• But if your enterprise makes your customer go through a lot of trouble while cancelling the order then your business is under risk.
• Moreover, it could lead to unnecessary Chargebacks.
• Solidify the rules around the replacement and return of an order.
• And make sure you provide smooth payment processing to your customers.

Poor Agreement Management

Another complaint that is filed against the merchants is related to the agreement management. That could be related to the poor description, expensive services and many more.

• Leasing services are generally non-refundable that further leads to conflicts.
• Merchants always pay more when they are renting a terminal than just to outright buying one.
• By the time, this all leads to costing thousands of dollars to the merchant.

If you are facing such issues with your agreement and need guidance then contact Merchant Stronghold at the toll-free number +1(888) 622-6875 for support. Moreover, for a further list of the Common Merchant Account Complaints, visit our website merchantstronghold.com.

Misleading Sales Practice

• This is one of the worst sales practices. If you wish to lead a long profitable business then never apply such things to your business.
• For a merchant, sales are very important and to increase sales they try every method.
• Some merchants try these petty methods to increase sales.
• But the customer with one bad issue can report the business of this unethical practice.
• Advertise your product as it is.
• And if you offer some discount then make sure you clear out the terms and condition to the customers properly.
• Train your sales agent properly and tell them the customer satisfaction is always the priority.

For more tips and tricks, contact Merchant Stronghold, we always have a team of experts ready to help you with your queries related to the Common Merchant Account Complaints.

Set your Price According to your Market

Every merchant wants to earn the profit and for that, they introduce attractive offers with their products while other products are not easily available. In the latter case, sometimes the merchant asks for a really high price that is not according to the product market value. These issues lead to greater trouble for the merchant in future that makes it to one of the Common Merchant Account Complaints.

• Disclose your entire price before the customer purchases the product.
• Do not add additional charge at the time of payment.
• This generally leads to customer backing out for the purchase.
• Many merchants are reported of such practices and immediately eliminated from doing any further business.

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These are some of the common issues faced by our users contacted for “Common Merchant Account Complaints”. If you are also having this question then contact Merchant Stronghold. We provide customized support to the high-risk merchant accounts and credit card processing. Call now or visit the website at app.merchantstronghold.com

What Is The Merchant Category Code And Why Is It Important?

Merchant Category Code – As we know that the credit card processors are responsible for the various payments. The merchant has some responsibilities too when it comes to the transactions. If you use the card for your transactions then you need to register your business and get a Merchant Category Code.
In this article, you will get details related to the MCC. But if you face any issues then feel free to contact Merchant Stronghold and get required details.

What is the Merchant Category Code?

The Merchant Category Code or MCC is four-digit code provided to different merchants by the Card Network. This Merchant Category Code helps them distinguish between the merchant areas of the business. This means merchants and their businesses are classified using the four-digit code.
The MCC is provided when the company or business starts taking card payments. These protocols are designed to make the business easy for the card network and the merchants.

Why Merchant Category Code Matters?

For both security and profit reasons, the merchant needs to get a Merchant Category Code for their company. It offers rewards to both the merchant and the customer. Moreover, it makes the process of tracking the business easy and convenient.

• The Card Company offers rewards and points to the specific category of the merchants.
• The companies that offer their employees corporate cards provide valid discounts for some categories like hotel or hospital.
• It helps to apply certain rules to a specific business without having to face any chaos.
• The MCC makes it easy to apply prohibition and access to specific firms.
• If the merchant is involved in more than one business then the MCC will be given according to the primary business.

For more details, reach out to our specialist through the toll-free number of Merchant Stronghold.

Merchant Category Code List

MCC Merchant Category

• 0742 Veterinary Services
• 1520 General Contractors
• 2741 Miscellaneous Publishing and Printing
• 3000-3299 Airlines
• 3501-3790 Hotels/Motels/Inns/Resorts
• 4121 Taxicabs/Limousines
• 4215 Courier Services Yes 4225 Public Warehousing and Storage – Farm Products, Refrigerated Goods, Household Goods, and Storage
• 4457 Boat Rentals and Leases
• 4468 Marinas, Service and Supplies
• 4511 Airlines, Air Carriers
• 4582 Airports, Flying Fields
• 4722 Travel Agencies, Tour Operators
• 4814 Telecommunication Services
• 4816 Computer Network Services
• 4899 Cable, Satellite, and Other Pay Television and Radio
• 5044 Photographic, Photocopy, Microfilm Equipment, and Supplies
• 5045 Computers, Peripherals, and Software
• 5047 Medical, Dental, Ophthalmic, and Hospital Equipment and Supplies
• 5111 Stationary, Office Supplies, Printing and Writing Paper
• 5122 Drugs, Drug Proprietary’s, and Druggist Sundries
• 5137 Uniforms, Commercial Clothing
• 5198 Paints, Varnishes, and Supplies
• 5251 Hardware Stores

These are some of the examples of the MCC and their merchant categories. If you want more details and Merchant code for your business then contact the Merchant Stronghold.

MCC Frequently Asked Questions

Q. Who assigns the MCC to the Merchant and their business?
The Card Network such as Visa or MasterCard assigns the MCC as the merchant starts using the Credit card for in their transaction method.

Q. Some suppliers sell both merchandise and services. What MCC do they get?
There are many suppliers that sell merchandise and perform services. For example, a supplier may sell pianos but may also give piano lessons. If a supplier deals in both services and merchandise, the assigned MCC generally reflects the greater percentage of the supplier’s business.

Q. Am I required to use the MCC List?
No, you are free to review the documentation for each transaction and make your own decision whether you should report it or not.

Q. Do I have to tell Visa or my Issuing bank that I am using the MCC List?
No.

Q. Will the IRS change the MCC List each year?
No, the IRS does not expect to change the MCC List, except to add any new MCCs that are created by the bankcard industry.

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These are some of the most common queries of our customers. If you one of such merchantisfacing issues then the Merchant Stronghold can help you. You can call us at the toll-free number+1(888) 622-6875. Also, try the 24/7 available email support at info@merchantstronghold.com
We provide global solutions to credit card processing. Also, Merchant Stronghold specializes in high-risk and offshore merchant accounts. We can help you with the merchant account and online payment gateway.

Methods To Avoid Merchant Account Hold Or Freeze

Avoid Merchant Account Hold or Freeze – The Account that a Merchant holds to make transactions is called Merchant Account. When the bank suspects anything suspicious they have the authority to freeze the merchant account without prior notice. And the Merchant never understands the reason behind the sudden freeze. For a merchant, this can be both stressful and a bump in the business. In such case, there is a way the Merchant can try to avoid Merchant account hold or freeze.
In this article, we will discuss the tips to avoid Merchant account hold or freeze. Also, for more information, you can contact Merchant Stronghold at the toll-free number +1 (888) 622-6875 and talk to a skilled representative. You can also visit merchantstronghold.com and get all the articles related to your issues.

What is the Difference between Account Hold and Account Freeze?

Account Hold

• When the banks withhold some of the money from the merchant account is called Merchant holds.
• The merchant account remains active and the account holds money that acts as a deposit for doing business.
• Furthermore, in case of any fraudulent activity or chargeback issues, this money can be used.
• However, the Merchant Account is not standard practice for both banks and the merchant especially in the case of low-risk merchants.

Account Freeze

• If the Merchant is suspected to be involved in a suspicious activity then the Merchant Account is subjected to freeze.
• During the freeze, the merchant is not allowed to make any transaction using that Merchant Account.
• Then the Bank investigates the issues and unfreezes the account if no solid evidence is found against the Merchant.
• The merchant should understand the reason behind the Account Freeze. This can help to avoid Merchant account hold or freeze in future.

What Causes Merchant Account Hold or Freeze?

As we discussed, the Bank has the right to Hold and Freeze the Merchant Account without prior notice. This is a step of precaution in case of any frauds. Here are some situations that can lead to potential Merchant Account Hold or Freeze.

• Before opening the Merchant Account, the bank asks the Merchant to sign the terms and agreements. And if the Merchant does not follow the bank norms, the bank has every right to freeze the merchant account.
• High Number of Chargeback – If your business is causing a large number of chargeback every month then the bank will investigate your business methods and discontinue your banking facilities.
• Dealing in Undisclosed Goods and Services – Before opening the Merchant Account, you must inform the bank about your business with a detailed description. In case, you are caught dealing in other goods then you can be subjected to Merchant Account Freeze.
• Suspect of Fraud – If you or your business is involved in any kind of fraud or illegal activity then banks can take actions by freezing the account.

If you know the possible reason behind the merchant account issues then you can use the knowledge to avoid Merchant account hold or freeze in the future.

How to Avoid Merchant Account Hold or Freeze?

• Get a nice payment processor for your Business Account. Also, get a High-Risk Merchant Account if necessary.
• Moreover, if you are about to make changes to your business and starting to sell different goods or services, then make sure you inform your Payment Processor about the change.
• Reduce the number of chargebacks. The excessive number of chargebacks can cause a variety of losses including the Merchant Account hold.
• Finally, if you are going to make an exceptionally large transaction then inform the payment processor regarding your transaction details.

You can also hire an expert to help you avoid Merchant account holds or freeze. For such services, contact Merchant Stronghold and connect to an expert. We provide the best credit card processing services for all kinds of businesses. Merchant Stronghold specializes in high-risk and offshore merchant accounts. Reach us using the 24/7email support at info@merchantstronghold.com or directly visit us at app.merchantstronghold.com.