When you run certain kinds of businesses , it can be difficult to get banks to approve your merchant account. This is especially true if you engage in high-ticket coaching. And without a merchant account, it can be very difficult to take different kinds of payments for your products and services.
What if there was an easier way to set up your own business?
If this sounds like your situation, Zen Payments may be the solution you’ve been looking for. How can Zen Payments help you with payment processing needs for things like high ticket coaching? Keep reading to discover the answer!
How Is "High-Ticket Coaching" Defined?
For banks, “high ticket” items are ones that sell for $3,000 or more . “High ticket coaching” programs are those where someone sells coaching services for high amounts.
In this context, the term “coaching” is very relative. You might offer coaching programs to help with things like sales and marketing. Of course, life coaches and relationship coaches have become more popular in recent years as well.
As you can see, there are many potential high-ticket coaching niches. What they all have in common, though, is that they often sell for very high dollar amounts. And this can make it difficult for high ticket coaches to get a merchant account.
How High-Ticket Coaches Make It Hard to Get a Merchant Account
The banks that merchants rely on to help process payments all have something in common, too. And that is that each bank wants to minimize the risks of doing business.
Therefore, banks often hesitate to do business with your average high ticket coach for the same reason they hesitate to do business with any high ticket account. In the bank’s eyes, these are all high-risk merchants that may end up causing the bank financial woes instead of making them money.
While there are different reasons high-ticket merchants are flagged as “high risk,” the biggest one is simple: the threat of chargebacks .
High Ticket Items and Chargebacks
When customers don’t receive their items or aren’t satisfied with the product, they can dispute the payment. And if their dispute is successful, it results in a chargeback . This results in the customer getting the money back, effectively retrieving their funds from the bank.
As you might imagine, banks don’t like chargebacks because the process costs them time and money. And the expensive nature of high-ticket coaching programs and other high-ticket items makes chargebacks on these items much likelier.
Because of this, you may have trouble opening a traditional merchant account. However, companies like Zen Payments have made it easy for you to open a high-risk account and begin taking payments.
The Benefits of a High Ticket Merchant Accounts
It’s possible to try to negotiate with your bank to get a more traditional merchant account. Why, then, should you open a high-risk merchant account instead?
First, a high-risk merchant account helps you fight chargebacks. For one thing, you’ll find out about disputes early enough to issue a standard refund before it turns into a chargeback. And when customers do proceed with the chargeback process, a good payment processor can help you fight back and win.
The right processor also provides multi-channel payment processing, fast approvals, and reliable fraud prevention. In short, this is about more than just taking payments. It’s about making your business safer and more reliable than ever before!
The Best Ways to Manage Your High Ticket Coaching Account
Getting your own high-risk merchant account can reduce many of the headaches that come from running your business. But there are a few other steps you can take to make managing it even easier.
For example, invest in electronic ID verification. It’s fast, unobtrusive, and prevents fraud .
Ask for digital signatures on sales. This also helps prevent fraud. As a bonus, it makes it easier for you to respond to a chargeback.
Consider being selective about where you do business. Selling all around the world sounds great, but online fraud is more prevalent in some countries than in others. Blocking sales to high-risk countries reduces your own online sales risks.
Be sure to review all fraud-fighting tools and techniques at your disposal. Staying on top of this and making changes where necessary can help you deal with any fraud you can’t prevent.
Finally, look for early warning signs that someone may initiate a chargeback. Certain automated solutions can provide you with the warnings you need. From there, you can keep the situation from escalating to a chargeback.
How to Find the Right Payment Processor
When you’re looking for a payment processor, you’ll have many choices. How can you find the right one for your business?
First, look into the company’s record of customer service experience. Do other businesses generally sing the company’s praises? And do they have enough years in the business that you trust them?
Second, investigate how the company prevents fraud and fights against chargebacks. This is arguably the biggest benefit of having a high-risk account. Therefore, you want to get your money’s worth.
Third, make sure you understand the price structure and fees of the processor. These fees can really add up across many transactions. Make sure you are satisfied with the rates before you sign anything!
Fourth, and finally, look into the online security features offered by the payment processor. The right features can keep you and your customers safe. And a company missing those features can leave you and your customers very vulnerable.
Experience the Difference Zen Payments Can Make!
Now you know everything you need to know about high-ticket coaching and payment processing. But do you know who can help you take payments for your own coaching services?
Here at Zen Payments, we offer payment processing for many different industries. And we specialize in taking on the kinds of clients that may have trouble getting a merchant account elsewhere.
Ready to stop searching for a solution and start getting paid? All you have to do is contact us today !
Lizzy joined the Zen Payments team following her graduation from Utah Valley University. As a dedicated customer service representative, she brings extensive experience in client relations and customer support. Lizzy is committed to delivering exceptional service to all Zen Payments clients.
