Selling in the higher risk marketplace
It’s no secret. Some merchant types require a little more evaluation and handling to qualify for a merchant services account than others do. Generally, this is because these merchants are from industries that fall into one of the higher-risk brackets defined by the card brands. Assuming the merchant is operating legally, has a stable business history and also has no record of legal or security issues, they can generally still obtain an electronic payment account. They simply have to undergo a more intensive underwriting analysis.
While this may sound straight forward, the extra care is not something all processors, or the ISOs that sell for them, have the built-in capacity for. Consequently, some companies attempt to adopt the higher-risk merchant brackets into their portfolio, only to realize they aren’t adequately equipped to support them. This often results in legitimate merchants being cancelled without warning or fault, leaving them to cycle through service providers in search of an affordable and reliable one.
This makes for a difficult sales environment, and despite the income potential of selling in the higher-risk marketplace, a majority of payment sales representatives do not have an experienced and trustworthy merchant services option readily available to offer these merchants. “Whenever hard-to-place accounts are encountered in the marketplace, chances are a sales professional will spend a great deal of time hunting for a payment services provider that promises to keep the account long term,” said Leonard Garcia, vice president of sales at Humboldt Merchant Services (HBMS). “Therefore, it is uncommon for sales representatives to ever reach a point where they are experienced enough to feel confident about placing these companies.”
Industry expertise is the key
Fortunately, there are a handful of service providers in the industry that are established and well positioned as a specialty service provider for merchants that fall into hard-to-place industry brackets. However, outside of HBMS, none offer two decades of reputable service to merchants in the higher-risk markets, or a well credentialed in-house underwriting team that specializes in boarding them quickly and efficiently.
HBMS offers competitive, secure and reliable payment processing solutions to a myriad of merchant industries that are legally operating businesses, but are still considered hard-to-place accounts due to additional underwriting requirements. Examples of these industries include nutraceuticals, extended warranty, firearms and ammunition, electronic cigarettes, bail bond issuers, direct marketing, and buying clubs, as well as card-not-present (CNP) merchants falling into the dating, adult content, free trial and online tobacco categories.
Opportunity awaits you
While these types of accounts may seem obscure and unworthy of the time it perceivably takes on the sales front to ensure all the underwriting requirements are fulfilled, they also make up a large segment of the merchant marketplace. Additionally, they offer an unparalleled level of sales income opportunity, due to high and consistent sales volumes, as well as competitive mark-up opportunities.
“Humboldt Merchant Services has proudly and consistently served the merchants that are commonly rejected by other processors,” stated Adam McDonald, HBMS president. “We’ve spent two decades perfecting the review process and underwriting techniques required to wholesale these accounts through to the processors that trust our in-house review tactics and will board them without additional red tape.”
If you are a payment sales professional looking for a source to board business opportunities you would normally pass by due to the industry type or boarding difficulty, HBMS invites you to tour our website to become more familiar with our practices and service levels. We would also be happy to provide you with references from our sales partner community and merchants we serve.
Our track record is tried and true, and we have taken the guesswork out of what it takes to serve the higher-risk merchant marketplace. In addition, we offer the same level of exemplary service to traditional CNP merchants that may not fall under these hard-to-board business categories, but still require additional underwriting review to qualify.
With a selling partnership in place with HBMS, you’ll be able to take full advantage of this expertise, along with our rapid review and merchant account setup expertise. You and your merchants will also benefit from a full menu of services HBMS offers to every U.S. and Canadian customer, including multi-currency conversion, compatibility with multiple payment gateways and daily chargeback reporting. We also offer in-house support for customer inquiries, statement questions and chargebacks. In addition, for specialty cases, we also offer custom payment solutions, and additional chargeback management and fraud reduction tools.
If you are interested in what HBMS can offer you and your merchants, we would love to walk you through the steps of becoming an HBMS sales partner. Please contact us at 877-387-5642 and get started with enhancing your merchant portfolio and your residuals today.