Affiliate Merchant Accounts
Affiliate Merchant Accounts
Affiliate merchant accounts for affiliate businesses are considered high risk for a number of reasons. Most affiliate businesses operate on a recurring billing model also called negative option. These businesses operate very aggressive sales strategies that generate a high amount of sales however they also generate a high amount of chargebacks. The affiliates are paid on a per sale basis and use very aggressive selling techniques in order to generate sales and profits for their business. The merchant makes money by charging the customer’s cards monthly on a recurring basis. The amount depends on the offer that the customer is purchasing. Since many affiliate programs offer the affiliate a large upfront bonus for paying for sale and the customer usually only pays a small amount to begin their trial offer, there is fraud surrounding affiliates with this system.
Affiliate programs are gaining popularity as a leading way for merchants to expand their businesses without having to enter into lengthy and costly advertising campaigns that do not directly increase sales. It is a better investment for the merchant to enlist affiliates that will sell the product or service and pay the affiliate a set amount per sale. The affiliate merchant spends their time building their business through the operations side while giving the affiliates the advertising tasks. The affiliate marketer will know exactly how to market their product in order to profit. The merchant will then pay the affiliate for the sales that have been produced. Affiliates and merchants connect through affiliate marketing organizations that are prevalent on the internet. These organizations were developed with only the intention of connecting affiliates and merchants together. Merchants join these websites and so do affiliate marketers. The organization takes care of collecting payment from the merchants and paying the affiliate marketers for their sales they have generated.
Affiliate programs have produced enormous success for merchants that do not have the financial backing in order to expand. They pay a set amount for sales that are generated to their company. The merchant will know that they are profiting from every sale since they have set the affiliate pricing schedule. Merchants will find that businesses advertising their products and services will also succeed and this creates a win-win for all parties involved.
Offshore Merchants has been setting up affiliate merchant accounts since 2007. These merchants have benefited from quick payment payouts and competitive rates. This has helped to fuel their businesses to the top of their industry. Most merchants will only count pricing as the biggest factor when searching out merchant services however there are a number of factors that must be calculated in order for the merchant account to be considered a good account. The merchant account must be competitively priced but there also needs to be fraud prevention tools included along with an easy to integrate API for web designers. This makes it a very profitable setup when all of these features are included within one payment account.
Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.