Coaching Merchant Account
Coaching businesses offer valuable services to lots of people who are looking for personal improvement and professional growth. Unfortunately, because of their nature, “high-ticket” coaching businesses struggle to obtain a merchant account to accept credit card payments. The primary reason behind this is that these businesses are considered high-risk by banks and payment processors. And as you may know, most financial institutions don’t intend to engage with high-risk businesses.
Why Are High-Ticket Coaching Businesses Considered High-Risk?
There are a number of key factors that make payment processors reluctant to work with coaching businesses.
The first reason, of course, is the nature of these businesses. Coaching is a high-ticket business, this means it has a relatively higher risk of chargebacks. When clients pay a lot of money for coaching or training and feel that they have been shortchanged, they tend to become desperate and initiate chargeback without choosing other, less extreme steps to solve the problem.
Third, as trainers and coaches well know, cancellations are an unfortunate cost of doing business. Whether you offer virtual services or on-site ones, cancellations often trigger chargebacks whenever fees or deposits have been collected upfront.
The fifth reason is the high probability of fraud. Unfortunately, some businesses in the coaching and training industries fail to deliver what they advertise or sometimes even lack the credentials to do what they promise. While the instances of fraud are relatively low, the perception and threat of fraud contribute to categorizing these businesses as high-risk.
How to Find a Reliable High-Risk Merchant Account Provider
While most of the payment processors and banks aren’t willing to provide services to high-ticket coaching businesses, there are still those that want to work with them as well as many other types of high-risk merchants. These are known as high-risk merchant account providers. To find a high-risk merchant account provider, all you need to do is perform proper research and find one that fits the specific needs of your business.
Guidelines for Getting a High-Ticket Coaching Merchant Account
There are certain guidelines that you should follow when getting a high-risk merchant account for your coaching business. The first thing you should do is be upfront and honest about all the details about your business so that there is no risk of having it terminated. As long as you operate a legit business, you will certainly find a high-risk merchant account provider that will cover your specific needs. Another important thing is to learn that there will be limitations, e.g. rolling reserves.
When you find a reliable high-risk merchant account provider, you will need to fill out an online application. Their risk analysis team will decide whether your business qualifies for a high-risk merchant account. Make sure to find a payment processor that has a good track record for offering reliable services and fair quotes.
Documents Required for Getting a High-Ticket Coaching Merchant Account
The application process for a high-ticket coaching merchant account is more or less the same as obtaining any merchant account from any payment processor. You will be required to provide certain information about yourself and your business. Risk assessment professionals and auditors will consider all of this when evaluating your application. Before applying, make sure to have the following ready:
- * Bank and finance records
- * Your last six months of transaction processing history
- * An organizational chart/outline and a business plan
- * No outstanding legal actions against you or your company
- * A functioning website with URL
- * Potential cash reserve
- * All outstanding debts and bills that are paid or in process of payment
In conclusion, high-ticket coaching businesses have many challenges when it comes to obtaining a merchant account to accept and process credit card payments. The good news is, despite these challenges, many high-risk payment processors welcome doing business with coaching and training businesses. All you need to do is find one and make sure that it is capable of satisfying your specific needs.
Get Help To get A Coaching Merchant Account
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About The Author
Mark Sands, the co-founder of High Risk Merchant Account LLC, is an authoritative expert in the high-risk merchant account space. Mark has decades of experience in the payment industry & enjoys writing on entrepreneurial-related topics.