How To Get A High-Ticket Merchant Account
Many business-to-government (B2G) and business-to-business (B2B) customers require unique payment options when placing large-volume or big-ticket orders. If you are a merchant servicing this market, you will need a high-ticket merchant account so that you can use large ticket credit processing and reduce high transactional costs generally associated with B2G and B2B purchases. There are many other advantages of getting a high-ticket merchant account, e.g. reduced Days Sales Outstanding (DSO), PCI-compliant payment solutions to protect sensitive data, and more.
What is a High-Ticket Merchant Account?
If your business offers goods and services and deals with pricy products that are worth over $500, then you classify as a high-ticket merchant. You classify as a high-ticket merchant because of the risks of fraud and chargebacks associated with your business transactions. Business-to-business high ticket sales are classified as a standard risk because the risk of fraud and chargebacks is low in business transactions. On the other hand, business-to-consumer sales of costly items are classified as high tickets because of the greater risk of chargebacks.
High-ticket merchants can be affiliated with any industry, e.g. travel agencies, moving companies, furniture stores, and antique shops, just to name a few. No matter the industry you are affiliated with, as a high-ticket merchant, it is crucial that you get a high-ticket merchant account. High-ticket merchant accounts give businesses the ability to accept credit and debit card payments for costly products and services from consumers. High-volume merchant accounts are established for both business-to-consumer and business-to-business sales.
Merchants that have single transactions in the thousands of dollars range should fill out an application to start accepting debit and credit card payments. Once approved, they will be able to use their merchant account to enjoy various benefits. Facilitating high-ticket merchants is the specialty of high risk payment providers.
With a high-ticket merchant account, they can offer you various benefits, such as the ability to accept payments through all sales channels. This means you can take payments through mobile apps and online. Furthermore, unlimited virtual terminals are often provided to allow you to securely process telephone and mail transactions.
What Industries Require a High-Ticket Merchant Account?
Businesses in all kinds of industries use high ticket merchant accounts and high volume merchant accounts. As mentioned before, basically any business that sells consumer goods or services that cost over $500 needs a high-ticket merchant account. This is because a high-ticket merchant account lets you sell such consumer services and goods effectively by accepting debit cards, credit cards, as well as electronic check payments easily. Examples of high ticket products and services include (but not limited to) the following:
- Ticket Brokers
- Precious metals
- Luxury goods and services, e.g. tour operators, jet charter merchants, etc.
- Auto parts and auto transport
- Credit repair
- Tech support
- Student loan
- Premium health, fitness centers, and beauty items
- High-end personal services
- Expensive fashion items
- Custom goods
- Law Firms and Professional services
Risk Concerns for High Ticket Merchants?
Being a high-ticket merchant comes with many risks and nuances, and in today’s competitive market, there is simply no room for mistakes. Following are the most common nuances and risk concerns for high ticket merchants:
Finding Potential Banks – High ticket merchants typically have a hard time finding acquiring banks that are open to processing high ticket, high volume sales. Not all acquiring banks accept high ticket merchants because of the risk factors associated with high ticket sales. Working with a high-ticket merchant account specialist is the primary way to tackle this. A high-ticket merchant account provider can help you determine which banks are the best fit for your business, saving you considerable effort and time.
Fraud and Chargebacks – No matter which industry you belong to, if you are an online merchant, you are vulnerable to cybercrime. It really does not matter if it is a customer disputing a transaction or someone using a counterfeit credit card. High ticket merchants are especially vulnerable to fraud and chargebacks. And since the nature of high ticket sales and services is to process large transactions, a few chargebacks could easily cause your chargeback ratios to exceed the amounts that the card brands allow. This could mean incredible loss for your business. If left unchecked, it can even jeopardize your high-ticket merchant account.
With the help of a high-ticket merchant account provider, you can prevent chargebacks and protect yourself from fraud. Your merchant account provider will apply services like 3D secure services, early warning chargeback notifications, and chargeback mitigation services to arm yourself against fraud and chargebacks.
How to Get a High-Ticket Merchant Account?
Getting a high-ticket merchant account is a straightforward process. Your first step is to find a reliable high-risk merchant account provider. Then you can start by submitting an application with the required documents. The documents required may include your driver’s license, your bank and payment processing statements, voided check from the bank where processing funds will settle, etc. It is recommended that you contact the merchant account provider for the list of documents that are required to be submitted.
After submitting your application, you will need to wait 1-3 business days for account approval. Once your account is approved, your merchant identification number (MID) will be issued. The merchant account provider will also provide you with a secure email with your credentials. After that, you can start processing immediately.
Tips to Improve Your Chances of Getting Approved:
Follow these guidelines:
1- You must have good personal credit. If it’s not great, then it is recommended that you add a co-signer with good credit.
2- If you are an ecommerce merchant, then make sure your website functions well. Check and make sure that all webpages display properly and load quickly. Post privacy and refund policy on the website. If you ship products, then include detailed shipping information. Don’t forget to clearly display contact emails, hours of service and customer service details.
3- During the high-ticket merchant account application process, the approval team may “cold call” via email or telephone to determine how you handle customer service. If you have a voice mail setup, then be sure that there is a message that states your company’s name and when a call back can be expected.
Running any kind of business is not easy, but if you are a high-ticket merchant, it is significantly more challenging for you. High ticket merchants face unique challenges, particularly when it comes to operating an online business. The ability to offer high ticket services and goods online requires high ticket merchant account and the ability to process debit card and credit card payments. It is recommended that you find a provider that has experience of high-ticket merchant accounts and it specializes in the high-risk industry. In this way, you will ensure that you get expert guidance and advice regarding your high-ticket merchant account, saving you both money and time.
Get A High Ticket Merchant Account Today
Contact us today to get started at 1-877 493-4622
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.