Finding the Right Payment Processor for Bizops

Bizop, short for “business opportunities” (also sometimes known as “info products”), are a big part of the e-commerce landscape. These opportunities are essentially fully formed business models, education on how to start an online business or enhance an existing one that offer entrepreneurs the chance to improve their overall online business success. While there are many examples of non-digital business opportunities, the opportunities that are often most accessible to newcomers are online-based. 

Similar to a franchise concept, bizops can be especially attractive to anyone who is interested in starting or growing their own business but isn’t sure how to get started. A good example of this is educational products that provide online training; with content and digital tools provided, the seller is able to offer education in a particular field or discipline without having to develop the whole training course themselves.  

One of the potential challenges for bizops is that they can be considered high risk in the payment processing industry, due in part to the unscrupulous tactics of some bizop merchants who make unrealistic claims (for example, “get rich quick!” or “earn $10,000 in a month with no effort!”) about the benefits of a product; these unethical tactics lead to disgruntled customers and subsequent chargebacks. This, unfortunately, has contributed to the whole business category being deemed high risk, even for those merchants who are fully above board. As a result, some payment processors may be unwilling or unable to effectively take on even an honest bizop merchant. 

For the merchant, this means that accepting credit card payments, the lifeblood of any online business, can be expensive or risky. As a result, finding the right payment processor is an important question to consider when launching a new bizop venture. But how do you find the “right” processor? Here are a few questions to keep in mind when looking at different payment processing services: 

Do they understand how bizops work? 

The complicated “high risk” designation sometimes given to bizops by the credit card payment processing industry is one unique challenge, and it can have a major impact on the ability to accept online payments. Bizop entrepreneurs should seek a processor that is willing to work with high-risk businesses, but they should also seek a processor who understands their particular industry and who offers customized solutions that meet their unique needs. The “one-size-fits-all” method of payment processing might work for some industries, but bizops occupy a unique space in e-commerce that will greatly benefit from a more specialized approach.

How do they help you manage the risk of a bizop? 

Some payment processors are willing to take on bizops, but they don’t all have the same kinds of solutions for mitigating risk. Find a processor who offers a full suite of tools like real-time reporting and dispute management that give merchants valuable data and a leg up on detecting one of the biggest risks to any online business: chargebacks and fraud. This is particularly important in chargeback defense, a huge driver of e-commerce risk, because being able to preempt chargebacks can make an enormous difference both in a business’s bottom line and the ability to keep accepting credit card payments in the future.  

Is the service easy to use? 

Running any kind of business requires some amount of complexity, but many people who start a bizop do so because of the promise of simplicity. So why add unnecessary complexity when it comes to payment processing? Merchants should be wary of the world of payment processing and how complicated it can be to navigate. Instead, look for an all-in-one solution that allows you to focus your energies on running your business rather than dealing with the minutiae of payment processing.  

What is the cost and the impact on cash flow?  

Because bizops are sometimes associated with high chargeback rates, the fees for accepting credit card payments are typically higher than average; as a result, margins can be negatively affected. Finding a processor with reasonable rates is naturally an important factor, but it’s also crucial to find out how quickly you’ll get paid. Services that use off-shore processing often take two weeks for payments to be made, and that kind of delay can be burdensome from a cash flow perspective. Instead, look for a processor that pays more quickly by default.     

How do they deal with high chargebacks?

Chargebacks can be a major challenge for any online business, both because of higher fees and because of the consequences of a high chargeback rate. Some processors are very simplistic in this regard: anything above 1% means immediate termination of a merchant account, regardless of the situation. Seek out a processor who is transparent about their approach to chargebacks and who is willing to investigate the circumstances that might be involved in a higher-than-normal chargeback rate. 

What kind of customer support do they offer? 

In the same vein as the transparency surrounding chargeback rates, it’s important to find a payment processing service that offers a robust merchant support system. When questions or concerns arise, they need to be available on your schedule to help you quickly address the problem. Find out a processor’s approach to customer support, and you’ll be able to get a good understanding of whether or not they’ll be a partner you can rely on. One of the best indicators is whether or not you’ll be able to easily pick up the phone and have a conversation with a real person who has relevant knowledge and who is dedicated to providing rapid customer support.

PayCafe Supports Bizops

Bizops are unique entry points into the world of e-commerce because they can offer a clearly marked path for how to proceed. But not all payment processors seek to understand the nuances of your business. PayCafe can be a partner and a guide to help you navigate online payments. With an easy-to-use interface, a concierge-style merchant support system, advanced security and fraud prevention technology, and a series of tools designed to reduce risk, PayCafe is the best choice for bizop entrepreneurs.