Businesses of all sizes depend on a reliable payment processor for each transaction not paid in cash. The business may already have an established relationship with a merchant account in good standing. The account may be used for transactions in person and on the company website.
Business owners cannot count on as many new customers walking into their establishment. Trying to obtain multiple sales on the back end during this first contact is important. This sales opportunity could turn into a lifetime customer by asking for the recurring sale or obtaining their email address. Here are a few ways a high-risk merchant account can help businesses expand with additional streams of income.
1. Have Auto-ship Options
One-time sales can be turned into a product that is delivered monthly on auto-ship. If the customer does not agree at the time of the sale, they may place a recurring order when contacted by email. Having a high-risk merchant account allows for a customer to pay for goods one time and be billed again in the future for the same product. Examples of goods that work well for auto-ship are boxed or bottled food products, daily-use beauty products, subscription boxes, and cleaning supplies.
2. Use SAAS Products
Software as a service allows users to purchase access to software for use online. Access to the software is billed either every month, quarter, or annually with a high-risk merchant account. Companies can purchase a premade software and customize it with their branding to offer to customers, run as an additional stream of income.
3. Create Membership Sites
Customers that have found the business on social media, may want more than the business can provide for free. Specialized content can be created and offered through recorded video, live video streams, podcasts, or written information. Membership sites are usually billed monthly or annually for accessing this content. Consulting services may be broken down into several payments to make them more affordable for clients.
All of these ways to earn income from a business requires a high-risk merchant account. Any transaction where the credit or debit card is not present or a rebill occurs is considered a high-risk transaction. A traditional merchant account will hold funds, claim fraudulent charges, and issue chargebacks. Products and services that are billed monthly can help offset sales that once were made in person.
Foot traffic is at an all-time low, due to the pandemic and has resulted in changes in the operational structure for businesses. Apply for a high-risk merchant account subscription to have the ability to rebill for both products and services without the risk of losing revenue.