Most people would not think to consider furniture as "high-risk" products. However, many online furniture retailers have a very difficult time opening a merchant account with the most popular credit card processors. The reason for this is that online furniture sales are often very substantial purchases.
Since these sales occur online, these purchases are made without the buyer physically swiping their card. Online sales increase the potential for credit card processors as well as merchants to face fraud and charge backs. For example, the customer may report shipping damage. Of course, the same is true when consumers buy furniture by mail order or over the phone. However, these methods of purchase are becoming increasingly unpopular among consumers. Essentially, if you're not selling furniture in a brick-and-mortar store, chances are you will find it difficult to open a merchant account with a conventional bank.
Thankfully, there are merchant account providers out there who focus on providing credit card processing services to high-risk businesses. In fact, there are merchant account providers who focus on providing merchant accounts to card-not-present furniture retailers. However, you should keep in mind that even these merchant account providers have limits in terms of the types of businesses they will accept. You can count on these merchant account providers to have looser restrictions than the vast majority of merchant account providers.
If you are a high-risk merchant, chances are you will need to pay higher processing fees than the average merchant or retailer would. You may also need to pay a one-time setup fee. The purpose of the one-time set-up fee is to account for the extra risk that the merchant account providers are agreeing to absorb.
How to Choose a Furniture Retailer Merchant Account Provider
Undoubtedly, choosing a furniture retailer merchant account provider can be a very difficult and overwhelming experience. This is particularly true for the owners of small businesses. Here are a few tips that will help you make a well-educated and wise decision when choosing a merchant account provider. The decision you make is very important and will have a major impact on your business as well as the success it experiences.
First of all, it is important to find a provider who has a proven track record for providing excellent credit card processing services at an affordable price. You should take a look at the Better Business Bureau report for reviews about the merchant providers you are considering. You should be wary of any merchant providers who have received multiple complaints. Another good option you have is asking other furniture retailer merchants for some recommendations.
You also want to choose a processor who offers a money-back guarantee. That way, you will be able to try their services for a few weeks or months and decide whether you would like to continue doing business with them. In general, the merchant account providers who provide 100% money-back guarantees are more reputable.
For more information about how to choose a good merchant account provider for your furniture retail store, don't hesitate to contact us.