What to Know About High-Risk Businesses

When hearing the term "high risk," some people may suddenly become a little nervous. The word "risk" is usually never a good sign. For businesses that fall into this category, it is easy to understand why. They are less secure than other business structures out there and can run across problems such as funding.

But do you really understand what these types of businesses entail? How often do these companies fail? What kind of assistance is available to them? As you continue to read, you will be able to have all of these questions answered.

Defining High-Risk Businesses

The term "high-risk" is often chosen by banks and credit card companies. This is due to the services provided by said businesses, such as online gaming, CBD products, or lingerie. The bank or card company can determine whether to grant or refuse funding or payment processing to such a firm based on their risk tolerance levels and individual evaluation of the business's financial health and compliance needs.

Some signs that a business is "high risk" includes:

● High chances of chargebacks

● Low credit scores

● Fraud activity

● Bad reputation at banks

Businesses considered high-risk might be more likely to fail than others, too. Some studies show that about half of startups in this classification collapse within five years.

Is There Any Hope For Them?

Because so many credit card companies and outside sources are hesitant to work with them, high-risk business owners might feel like there are no options out there. Fortunately, they don't have to wallow in despair anymore, thanks to Xccept.

As a payment processing platform, Xccept is also able to work as a high-risk processor, too! Even if the company has had a suspended or closed account in the past, Xccept will not hesitate to provide assistance. Xccept works by acting as the middleman between these companies and the banks or credit companies they are dealing with. Xccept can pre-approve these businesses for a merchant account within one day, meaning that they can get owners on track swiftly.

Benefits of Using Xccept

When your high-risk business utilizes Xccept, you can expect the following to be true:

Better Cash Flow

Because card companies are so hesitant to work with you, they can overcharge you for card processing fees. To deter you from having to deal with this, Xccept can help you work on cash discount processing. This means that customers save money on an item's price-marked tag when they choose to use cash instead of their card. This means you will be paying fewer fees at the end of the month, meaning you have a higher bottom line. Xccept can equip you with one of their terminals that help make keeping track of these discounts and any other payments made.

Prevent Fraud

At times, high-risk companies are seen as fraudulent when they pop up as transactions in banks and credit card companies. This can stop payments from taking place, only working to cause both you and your customer grief. Xccept can mitigate this and show that your company is the real deal in no time. As a bonus, Xccept also offers Level I PCI security, which will keep all information belonging to your customers safe from harm's way.

No Chargebacks

A chargeback happens when a client requests a refund for a product or service that they have previously paid for. It is similar to a refund. However, the client goes via the bank that issued their credit card rather than the merchant that delivered the product or service. Chargebacks can result from the suspicion of fraud, billing statement problems, or dissatisfaction with a transaction.

Customers may be more likely to file chargebacks on purchases made through high-risk enterprises since they are perceived as dishonest. This can ruin your reputation with banks and card companies more. Xccept provides measures to avoid this, which will reduce the frequency of this mistake.

Put Faith in Xccept

Even though only some people are willing to put faith in high-risk companies, Xccept is different. They want to see your business continue on without worry. There's an array of other owners in your shoes, and Xccept has helped plenty of them. If they can be of great assistance to you, don't wait any longer to contact them. You will see a change in operation before you know it.