Since 2001, no one has done more to create profitable, long-term relationships between merchants and payment processing companies than Performance Card Service and our team of industry veterans. No matter where they operate, our high-risk merchant account providers supply cutting-edge fraud prevention technologies, aggressive risk management departments and precise underwriting criteria. At the same time, they also maintain some of the highest approval rates in the industry. Simply put, Performance Card Service is the premier source for payment processing solutions that address merchants' specific needs.
High-Risk Merchant Processing
Often, U.S.-based payment processors will not work with high-risk merchants, and the business is forced to seek other payment methods like eCheck or wire transfer. However, if the success of the business rests on accepting credit card payments, the merchant can choose to move offshore. Performance Card Service works with payment processing companies that offer domestic high-risk merchant accounts as well as eCheck and ACH processing.
Offshore Credit Card Processing
Many banks throughout the world, including those found in locations such as China and Africa, often allow a merchant to process cards without a specific incorporation in that jurisdiction. Although these banks normally approve an offshore merchant account with higher risks, they still require the usual Know Your Customer (KYC) documents. These processing solutions typically do not limit capacity, so higher-volume companies often find them helpful for enabling faster growth.
These banks may be seen as saviors for harder-to-approve merchants, but these processing solutions come with their own set of limiting factors of which merchants should be aware:
- The funding cycle usually is weekly. Though with one to four weeks in arrears, a merchant's cash flow can be greatly affected by such a delay. Therefore, the merchant must plan ahead.
- Some of these banks convert currency from their local currency to the merchant's local currency, which means that customers may see a currency conversion on their credit card statements. Merchants must inform their customers about this at checkout.
- Such processors may use a generic descriptor instead of a more custom one that is easier to recognize on a credit card statement. Merchants can avoid problems by notifying customers of this at checkout.
- U.S. law does not govern banks that are based outside of the country. Therefore, merchants must be sure that if they work with any of these processors that those processors are reputable. Merchants also need to be aware of the potential risk that something may go wrong and their funds may be held.
- Merchants may face a higher rate of declined transactions working with one of these banks than if they work with a domestic bank. Many customers' card-issuing banks have strict fraud-scrubbing features in place and will block transactions initiated in another country automatically.
Merchants choosing to use these banks must recognize and understand all of the aspects and potential risks involved in doing so. Partnering with the right adviser can help merchants with higher risk properly prepare their businesses for the future. The experts at Performance Card Service are here to match our clients with the right high-risk merchant services for their specific needs.