Switching from one payment solution to another can be annoying for a business that already has a lot of other things to deal with. However, high-risk merchants operating with a sub-par payment solution stand to gain a lot by making the switch to a smarter, secure, and scalable payment processor as soon as possible. Here are the benefits high-risk merchants who have already made the switch to a smarter payment solution reap.
6 Ways Smart Payment Solutions Enable High-Risk Merchants to Thrive
1) Reducing Chrgebacks
Chargebacks are a bane for any high-risk business. Not only do they represent loss of potential revenue, they are also often fraudulent. Even when they are not, however, chargebacks still negatively affect how your bank and partners see your business. Frequent chargebacks can be perceived as a potentially fraudulent behavior by others and result in loss of partnerships and opportunities, or in account shutdowns.
Using a smart payment solution is one of the best ways to avoid all that. Paycompass, is a payment processor that specializes in detecting and preventing chargebacks by utilizing complex smart algorithms and AI tools to make sure all transactions pass through as they are supposed to.
2) Preventing Fraud
There are many different types of fraud businesses in high-risk industries have to contend with. Some need to be dealt with on an in-person level, however, most types of fraud are best prevented with a robust smart payment processor. Payment solutions that specialize in working with high-risk businesses are aware of the various kinds of fraud that are prevalent in these industries and how to prevent them. A smart payment solution has various fraud detection and prevention features and protects both you and your customers.
3) Avoiding Transaction Declines
Like chargebacks, transaction declines can happen for various reasons. Often, it’s just because of insufficient funds or an incorrect credit card number or expiration date. Sometimes they can be due to fraud, but in other common cases they can be due to frozen accounts or incorrect data input.
A smart payment processor helps reduce the types of transaction declines that are preventable but also helps the customer identify and work through all other types of transaction declines, thus ensuring less customer frustration and a higher chance for a subsequent transaction with a different payment method.
4) Enable Business Growth
By virtue of being more secure and scalable, a smart payment processor can easily handle higher transaction volumes, as well as sudden spikes of traffic that other processors would struggle with. This is hugely beneficial for any growing business as it not only gives you room to expand into but enables you to experiment with things that often lead to rapid traffic increases, such as promotions, seasonal discounts, and so on.
5) Improving Customer Satisfaction
A smart payment solution always offers a smooth customer experience. This is true both through potential problems (transaction declines, chargebacks, etc.) and during everyday operation. Customers value both the speed and ease of payment processing, as well as its security. By doing all that, a smart payment processor helps with customer satisfaction and retention.
6) Maintain Brand Reputation
Brand reputation can be tarnished by many different things, especially in high-risk industries. Fraud and data theft during a simple transaction, for example, can irreparably damage consumer trust in your brand even if the problem wasn’t technically your fault but was done by a third party taking advantage of a sub-par payment processor. The same goes for processing bugs and crashes or just an overly slow and convoluted processing.
All this can become especially problematic for your brand reputation if it is frequent enough for negative consumer reviews to become overwhelming and noticeable. Utilizing a good payment processor is a simple and easy way to avoid all that headache.
A smart payment processor is a boon for any business, but is a must-have for those merchants operating in high-risk industries. The fraud prevention offered by a good payment processor alone is worth it for any business, even if we ignore all the other benefits that often cascade off of it.
