Because of the restrictive regulatory landscape, the nature of the industry, higher instances of chargebacks, and other factors, pawn shop owners like you must partner only with high-risk merchant account providers in order to accept payments.
Because of your high-risk business status, you can expect the application process to be more rigorous, fees to be higher, and perhaps the imposition of added restrictions.
Nevertheless, there is also a silver lining to the typical high-risk payment processing account for you and your pawn business.
Increased options.
For one thing, a good high-risk payment processor will offer payment diversity. This means that in addition to credit and debit cards, you will also be able to offer your customers the ability to make purchases using mobile payments, digital wallets, and even cryptocurrency.
If you do business internationally, you will be able to let your customers make purchases in their native currency of choice.
Protection from fraud.
One fact of life that makes the pawn industry extra risky is the predominance of identity theft and other types of fraud that have traditionally plagued this sector.
The provider who works with you will be highly motivated to protect their investment in your business by providing you with access to the most cutting-edge anti-fraud and data security software and systems.
This includes state-of-the-art encryption that ensures the safety of all transmitted and stored data. Additionally, you will also be able to benefit from multi-layered authentication protocols that require customers to go through extra verification steps before the transaction is processed.
Types of information that you can request include biometrics (fingerprint or face ID) as well as two-factor authentication requiring that the customer enters a unique code that is sent to their mobile device.
As a result of these heightened measures, both you and your clients will be shielded as much as possible from the chance of being a fraud or data breach victim.
Finally, your high-risk provider will use fraud detection systems that analyze each of your transactions in real time.
By using machine learning and advanced algorithms, these systems can detect potential criminal activity, flagging it for further investigation before any damage can be done.
Faster payment processing times.
When you partner with a traditional payment processor, it can often take several days before you have access to your money. By contrast, high-risk merchant account providers offer fast funding features that enable you to get your hands on your settled payments much more quickly.
As a result, your cash flow will be boosted, allowing you to dedicate more resources to your business, your employees and your marketing strategies.
Better customer support.
In the case of many traditional payment processors, getting competent help in a timely fashion when problems arise is next to impossible. However, high-risk merchant providers understand the distinctive nature of your business and can provide specialized assistance right away.
You can also expect to benefit from a risk management reporting system and software that helps you to detect fraud, monitor transactions and quickly mitigate security incidents to minimize negative consequences.
As a pawn broker, your business can become a vital institution in your community as well as a retail powerhouse online.
While there is no doubt that you will need to partner with a high-risk merchant account provider, there are upsides to be found in this arrangement.
Just take the time to find the company that best meets your specialized needs, and you can partner with each other for mutual profit and success.
