Pawn Shop Merchant Account
Time to time Pawn shops has been perceived as high risk merchants mainly because of the nature of the business and the inherent risk possibility of being stolen goods. What makes establishing pawn broker merchant account as high risk can be understood from the fact of stigma in the society of selling stolen articles though only less than 1 tenth of one percent of all pawned product is identified as stolen. Ipaytotal helps pawn businesses easily acquire high risk merchant accounts with one of our many partnered acquiring banks.
Here’s a Common Scenario
Many pawn shops recently has seen a spurt in the credit card processing solution, but pawnbrokers themselves have provided secured loans for personal property for quite a long time. Many banks are often interested in this industry since they know the value and solutions pawn shops provide to their customers, whereas most Pawn shops find this industry to be insecure.
How Does Being High Risk Affect Your Chances of Getting a Pawn Shop Merchant Account?
The only thing that has been changed till date in pawn industry is now if you buy stuff that has been pawned, one doesn’t have to visit brick and mortar stores but you can actually make your transaction online as well now which has seen a huge increase. This has resulted in many pawn shops having an access to a huge customer base and benefits that have outnumbered the shortcomings.
The major problem of this industry is people having a distrust that product in the store is all stolen stuff which in fact it is in common parlance the pawn shops are regulated and licensed by the government.
The pawn shop merchant account provider let them accept payments through credit cards by providing them a payment gateway. This leads to high volume retail sales varying millions of dollars in multiple currencies.
Also, one point to note that online pawn shops are more likely to fail if they are not able to provide assurance to their clients of their purchasing safety. Therefore the pawn shop merchant account provides all kinds of security features
When the economy is shaky, pawn shops are usually doing brisk business. At the same time, they also do well in good economic times because they offer used merchandise at reasonable prices. This is why so many people are looking into starting their own pawn shop.
A pawn shop owner should consider the following points while opening a new merchant account which is a prerequisite for a good pawn merchant account:
- ACH Processing – Taking payments via electronic check and straight from a bank account is useful for pawnshops who need to make sure they get the money they are owed by customers.
- Recurring Billing – Basically, This means the money will be automatically charged to a credit card or bank account. This is a nice feature of recurring billing.
- Check Processing – Processing checks quickly and easily is a very useful feature of merchant account since many customers go for the option of paying by check.
- Chargebacks – Chargebacks by the customers in pawn industry is common. To keep this problem in check one should find a merchant account which does not charge too much of recurring chargebacks.
- E-commerce – These days many pawn shops are going online which leads to an increase in e-commerce transactions and so as their business through online payments. One has to Make sure that one gets a merchant account that provides a virtual terminal with no card present facility and no signature transactions.
To Know More about Merchant Account for Your Pawn Shop Business
No need to worry because iPaytotal is here to help you. Our customer care support is available 24/7 to give your business the best solution no matters where you are. You will be amazed by the service provided by us. Contact us to learn more about what we can do for you.