Just about every business today needs to be able to accept credit cards. Only accepting cash or checks is not enough as problems like bounced checks and late payments can lead to slow funding. Coin dealers are not much different when it comes to merchant services at a coin shop.
A coin dealer merchant account adds credibility to your business and frees your customers from the limitations of cash. In order to be able to process credit card transactions, you will need to find a reliable merchant account provider. This can be challenging for any business. And it is even more difficult for high risk merchants e.g. gold and silver coin dealers.
Why Are Coin Dealers Considered A High Risk Merchant ?
There are several reasons why coin dealers are considered high risk and typically require a high risk merchant account. One of the primary reasons is that there are often lots of cases of friendly fraud, scamming, and counterfeit products in this industry, which ultimately lead to payment disputes. Another reason is the absence of return policies. Many gold and coin dealers have rigid or sometimes no return policies regarding their products, which forces the customer to file a chargeback claim when the product does not meet their expectations. Last but not least, the laws and regulations in this industry are often changing, which can lead to changing coin values and hence inconsistent revenue. Because of these reasons, it is highly recommended that you get a high risk merchant account for your coin dealing business.
What is a High Risk Merchant ?
In simple terms, a high risk merchant is any business that presents a higher risk of fraud or chargebacks to the payment processor. This is typical because of the nature of the businesses. However, it can also occur if the business caters to customers that present a higher risk of fraud or if the business owner has particularly bad credit.
How to Apply for a High Risk Merchant Account ?
First, you will need to find the right merchant account provider for your business. There are many payment processors available. Some of them are willing to work with high risk merchants, including coin dealers. So, you will need to find such a provider. Once you have found and chosen one, you will need to fill out the application form which is usually available on the provider’s website. It’s a good idea to add a Chargeback Alert Service to reduce and mitigate any chargebacks. To complete the application, you will need to provide some essential documents. After that, the approval process will begin.
How to Find the Right Merchant Account Provider?
It can be quite challenging to find the right merchant account provider for your high risk coin dealing business. By taking the following things into consideration, you can make the process a bit easier:
Experience: How long the merchant account provider has been on the market is extremely important. The provider must also know all the ins and outs of gold and silver coin dealing industry.
Security: Since there are more risks of fraud attempts and chargebacks in the coin dealing business, you will need to find a payment processor that has a multilayered approach to security and a reliable chargeback prevention system.
Flexibility: Find a merchant account provider that allows you to implement different payment scenarios to cover all your business needs. Also, make sure to discuss features, conditions, and rates tailored to your business.
Transparent Pricing: Make sure that the pricing structure of the merchant account provider is clear and there are no extra or hidden fees.
Avoid pricey contracts with merchant account providers that lack innovative technology and know-how. Your goal should be to minimize friction in your coin dealing business, so make sure to do a thorough research before you decide which payment processor you will work with.
About The Author
Mark Sands, co-founder of High Risk Merchant Account LLC, 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.