Ticket Broker Merchant Account
Ticket Broker Merchant Account
Merchants operating or starting an online ticket broker business will quickly realize that opening a merchant account was not as easy as they thought. It is important to understand that these types of businesses are usually prone to fraud and the sales of fraudulent tickets to unknowing customers. This raises the chances for chargebacks and when the risk increases with a merchant account so does the cost of processing for that industry. Brick and mortar ticket brokers will find it much easier to process cards however merchants operating online in a non face to face setting will be plagued by having to obtain a high risk merchant account. Most merchants operating in a face to face environment will be able to operate their ticket broker business with a normal low risk merchant account.
Ticket sales are usually always considered high risk especially non face to face or internet sales. A stolen credit card could be used to purchase a ticket and once the event has passed the real owner of the credit card will see that purchase on their statement most likely after the event has taken place. The tickets are now worth zero and there is no way to get the money back except for charging back the ticket broker. This example happens in the real world and banks are aware of this. They must make sure they are protected. The high risk processor will charge a higher fee and also charge a reserve of usually 10% of the amount processed as a safety precaution for them. The merchant will get the 10% reserve back after six months.
Most online ticket broker merchants are aware of this and agree since this is the only way they are able to stay or be in business. The type of tickets is usually not a deciding factor. The online ticket broker is able to sell tickets for; sporting events, concerts, Broadway shows or experiences and still receive the same terms and rates for their account. Most ticket brokers sell multiple types of tickets, anything that is in high demand. It is important that merchants understand the costs and fees that they will be subject to and make sure they factor these into the price of their tickets in order to stay profitable.
Offshore Merchants is a high risk payment processor that is well versed in offline and online ticket broker payment processing. They are able to setup your business within 1-2 weeks and you will be able to process all of your customer’s orders without any headaches or problems. A solid processing solution is the most important factor when choosing to setup credit card processing or debit card processing for your online ticket broker business. Offshore Merchants has been setting up high risk merchant accounts since 2007 and they have dozens of relationships all over the world helping to place a wide array of merchants and their industries. Most merchants will receive an approval within a week.
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.