Credit Card Processor for Interactive Agencies
If you are a newly established business or an existing company that specializes in website design, pay per click management, web hosting, search engine marketing or search engine optimization services you may find it difficult to get a merchant account set up. Services like PayPal do not allow merchant account set up for this industry. Now keep in mind they do allow PayPal checkout but not allow a PayPal "merchant account". Plus many of your clients may prefer to simply pay with their Visa, MasterCard, AMEX or discover and not wish to use PayPal as a checkout option. Also web design companies typically charge large transaction fees to their clients and it can be difficult to find a merchant account processor that will process these type of transactions. If you fall into some of the services listed above such as hosting, your business may be classified as a high risk industry and frequently placed on prohibited lists. This is because of potential chargeback issues and how your billing system works, for example say you are a website hosting company and offer quarterly or annual billing options, if a client cancels you have to make sure that they are proportionally credited. No merchant account processors will allow for more time above annual billing, so if you try to offer two or three year options you won't find any credit card processing companies that will allow this type of transaction.
There are also issues with the actual transaction amount being billed to the client and the services performed. For example say you are billing your client several thousand dollars a month, or even 10 to 15,000 or more per month and the client is not satisfied with the work. Perhaps you are offering search engine optimization services that are unpredictable in nature and your client search results fall off. The customer can potentially contact their credit card company and dispute the charges, resulting a chargeback liability. The merchant bank needs to know that you have the capability in your business to support the potential chargebacks that may arise. When the contracts and services become complicated the client may win the chargeback and you will have to collect your funds through other means including legal means if necessary. This is why you are often labeled and included with high-risk merchant account designations.
Merchant rates for these type of interactive services will typically fall in the 2 to 4% range depending on if you are a new business or an established web design company with credit card processing history. The longer you have been in business more likely you will be able to negotiate lower credit card processing rates with your new provider. Fortunately, in many cases, these business-to-business types offering SEO, Web Design, and interactive services will qualify for our no annual fee, no early termination fee program.to find out if you qualify you will need to call us or fill out our web contact form and someone from our staff will assist you in getting your application together, your documentation, and processing statements necessary to complete the underwriting process.