PPI Claims Merchant Account

Why PPI claims Merchant Account (Also Known as Payment Protection Insurance) Considered As High Risk?

One of the fastest growing and most profitable sectors today is the PPI claims business. For those involved already or looking to enter the market, having access to a PPI claims merchant account is essential to get the most from this opportunity. However, in common with other financial services this market falls within what the card companies describe as “high risk”, meaning that these markets demonstrate a higher propensity to charge backs, fraud and other risks that mean that certain aspects of the PPI claims merchant account must be tailored to mitigate those risks as much as possible.

In practice, this means that there are several aspects of a PPI claims merchant account that differ from others, principally they tend to incur a higher cost per transaction, and a larger annual fee for the account and fees for the payment gateway itself. This can be somewhat annoying, but the extra risk is real and the extra costs are simply a byproduct of that, something to be factored into the operating costs of the business itself.

The majority of PPI claims merchant accounts available enable the business to accept all major credit and debit cards, and some include multiple currencies, such as payments in Euros, as well. It is also important to ascertain of the required service will be for internet only or also include phone payments, as this can add additional costs and requirements for the PPI claims merchant account as well.

Applying for a PPI claims merchant account is a little more comprehensive that with other merchant account though, with proof of any required license to operate, company references from their bank, and often proof of ownership of the website domain being operated as part of the assessment process.

For many high risk accounts one of the significant changes is the delay in accessing funds, and as a PPI claims merchant account is itself a high risk business type, it is no different. However there are numerous providers who have managed to reduce this and offer PPI claims merchant accounts that have delays no longer than a standard merchant account, which can be very beneficial for cash flow.

Using a provider that has experience of providing PPI claims merchant accounts is really essential, it is a specialist market and requires the provider to have understanding of the needs of both the business itself and its customers to make sure that the service provided fulfills the needs of both.

Having said that, for a business with a good history and all the required documentation, setting up a PPI claims merchant account is very straightforward, if a slightly longer process than a normal merchant account, and with adequate preparation and research, the suitable provider, offering the best combination of cost and service will soon be found, and a PPI claims merchant account acquired.

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