METHOD OF PROCEDURE

We consider building enduring client relationships as the cornerstone of mutual success. Our commitment to transparency and an upfront approach has been instrumental in retaining long-term partnerships. Our staff takes on a consultative role, going beyond basic services to become an extension of your team rather than just a vendor. We invite you to explore our no-commitment, no-obligation reviews and assessments of your current business, laying the groundwork for a continued successful partnership."

What we do is simple – partner with you, our client, to help your business grow. Here is how we do it:

ACCEPTING CREDIT CARDS FOR YOUR BUSINESS

CAT Payments can enable your business with the ability to accept Visa/Mastercard/Discover/AMEX as a payment type from your customers. CAT Payments provides your business with a full line of products to meet all of your credit card processing needs. For all cards you accept, we offer next-day funding, which may dramatically improve your cash flow. Plus, our comprehensive range in hardware and software solutions, including the new EMV devices. Offering the best prices and, for eligible accounts, discover options for free-of-charge hardware to jump start your business.

INDUSTRIES

We accept a wide range of industries. CAT Payments stands out from popular payment processing service alternatives (PayPal, Stripe, Square, etc) by catering specifically to businesses operating in traditional & high risk industries.

E-COMMERCE SOLUTIONS

Transition seamlessly from brick and mortar to online business with CAT Payments. We can effortlessly establish your online store and integrate it directly with a POS system, streamlining inventory management into one cohesive system. Contact us today and we’ll provide you with a free consultation.

HIGH RISK ACCOUNT

Introduction Reliable and affordable payment processing is vital to any business. For many industries – particularly those where the risks of chargebacks and fraud are high – a special type of payment processing account, known as a high-risk merchant account, is needed. But what exactly is a high-risk merchant account? How do you know if your business needs one and what should you look for in a provider? Here, we’ll take a look at those questions in-depth and help you understand what you need to know about high-risk merchant accounts. What is a high-risk merchant account? A high-risk merchant account is a payment processing account for businesses traditional payment processors classify as “high-risk”. Generally, high-risk refers to a higher probability of chargebacks or fraud relative to more traditional businesses. Additionally, criteria like transaction size, industry, sales model, and order fulfillment timeframes can influence whether or not a given business is classified as high-risk. For enterprises categorized as high-risk, obtaining payment processing can prove prohibitively expensive or unattainable through conventional financial institutions. This is where CAT Payments excels. CAT Payments serves as a facilitator, connecting high-risk businesses with specialized payment processors that possess established relationships with banks and profound industry knowledge, enabling them to offer tailored payment processing solutions. Industries that need high-risk merchant accounts One of the key drivers of whether or not a business is high-risk is the industry it is in. Industries commonly identified as high-risk and in need of high-risk merchant accounts include:

Of course, the list above isn’t exhaustive. So, what characteristics might make your business high-risk? Bad credit- Just like in the personal finance space, businesses with bad credit – or no/limited credit history – may be classified as high-risk. Free trials- If your business offers free trials that upgrade to paid subscriptions, it may be a high-risk business. Recurring billing- Subscriptions and other forms of recurring billing are often labeled high-risk by traditional payment processors. High-ticket sales- Selling high-cost items also means there is a higher cost associated with individual instances of fraud or chargebacks which increases the risk profile of your business. High rates of fraud or chargebacks in your industry- As you might expect, if you go into an industry known for higher-than-average fraud or chargebacks, your business is likely to be labeled high-risk. Pro-tip: If you need help determining if your business is high-risk, contact our team of experts at alex@catpayments.com or 1(628)228-7640 Pros and cons of a high-risk merchant account Like most things in business, high-risk merchant accounts have pros and cons. The downsides of high-risk merchant accounts stem from the increased risk to payment processors. After all, if an industry carries more risk, you can expect providers to raise prices to account for it. So, what are the downsides from the merchant’s perspective? -Higher fees- All else equal, a high-risk merchant account will have higher fees than a “low-risk” account -Reserve requirements- Many payment processors will require high-risk businesses to keep a reserve in the account to help mitigate risk. This can tie up some cash flow and reduce short-term liquidity. Of course, there are also upsides to high-risk merchant accounts – particularly when you partner with a respected payment processor — which include: -Reliable payment processing for profitable industries – Many of the industries classified as high-risk also offer the opportunity for high profits. By using a high-risk merchant account, you enable your business to collect payments in an industry that has significant upside. -Scalability– High-risk merchant accounts allow you to collect different types of currency and forms of payment and can scale with your business. -Chargeback prevention– Let’s face it, no business likes chargebacks, but they are a reality that occur regularly in high-risk industries. -Chargeback prevention services can mitigate the risk to your business and give you more control over the refund process. -Industry expertise– Finding the right payment processing solution isn’t always easy, particularly in high-risk industries. When you choose the right payment processor, you gain a partner that can help you identify the right solutions for your niche. In the long run, this expertise can save you money and mitigate risk to your business. What to look for in a high-risk merchant account provider Now that you know what a high-risk merchant account is, how can you find the right provider for your business? There are a few key criteria to consider: Pricing & fees- Choosing a payment processor is first and foremost a business decision. Beware of unnecessary fees and high rates that can chip away at your profit margins. We’ll go into more detail on what reasonable high-risk merchant account pricing looks like in the section below. Customer service & expertise– Does the provider specialize in high-risk industries? Do they have the relationships with banks that can help get your business the best service possible? When something goes wrong, can you get in contact with a real person who can help? These intangibles can make a world of difference in finding a solution that is the right fit for your unique situation. There is no such thing as a one-size-fits-all payment processing solution and going with a generalist can cost you in the long run. Security– When you choose a payment processor you are trusting them to keep your – and your customers’ – financial data secure. Be sure to only choose providers with a reputation for security that use reliable and secure payment gateways. Chargeback prevention and fraud mitigation features– What level of control will the provider give you over the chargeback process? Can you be proactively alerted and choose when to dispute chargebacks? The more control and visibility a provider can offer you, the better you can manage the risk. Similarly, do they have features like 3-domain structure (3D secure) in place to help you prevent fraud? Application process & speed– Will it take days or weeks for your account to get approved? Ideally, a quality provider can get your application approved in 2-3 business days. However, it is important to keep in mind there are no guarantees when it comes to account approval. The best you can do is partner with a provider that knows the industry and has a reputation for speedy service. What are reasonable high-risk merchant account prices, fees, and terms? It’s true that high-risk merchant accounts generally come with higher fees than low-risk accounts. However, you can get reasonable rates that enable you to retain more of your profits if you know what to look for. Additionally, the lower the reserves a provider requires the more cash flow you have available for your business. At CAT Payments we believe in giving our customers the most value in the industry and have structured our pricing around that philosophy. That’s why we offer these account terms: Rates starting at 2.25%
Daily settlements
No setup fees
No application fees
Quick approvals Need help finding the right payment processing solution for your business? Contact CAT Payments!

CHARGE BACK

What are Chargebacks? What you need to know about Chargebacks is that they can occur when a customer contacts their credit card Issuing Bank to initiate a dispute and request a refund for a purchase they made on their credit card. The reasons why chargebacks arise can vary greatly but in general, they are mostly the result of a customer being dissatisfied with their purchase. A chargeback is a reversal of a credit card transaction. Not because the product was returned or because the sale was never completed, but because there was some problem with the end result of that transaction and the customer requests a refund. Often and unfortunately, a chargeback means that the customer initiated a dispute and the merchant ended up providing a product or service for free. Common reasons for chargebacks on a purchase made with a credit card include: Customer disputes
Fraud
Authorization issues
Processing errors
Failure to fulfill copy requests
Payment Gateway Merchants Hate Chargebacks Merchants of course, hate chargebacks. When you shop for payment processing and a merchant account, pay special attention to the aquiring bank and payment processors chargeback rules. Even though you feel a good merchant acquirer and payment processor will take chargeback management seriously and provide chargeback protection for its customers, this is not always the case. Here are some other ways you can help initiate a dispute and have your customers ding you with a chargeback. 1) Take customer satisfaction seriously, and strive to meet or exceed customer expectations about what products or services you will provide, when you will charge their cards, and continuously work on preventing fraud within your own operation. 2) Be sure your staff is trained not to process transactions with declined authorizations or without customer signatures. 3) Never estimate charged amounts, and be sure the customer sees the final total (including tips and other add-ons) before the card is charged. 4) Be sure the transaction information on the sales receipt is legible. 5) Ship merchandise before processing and settling credit card transactions. 6) Be vigilant about voiding duplicate transactions added in error, and take steps to secure credit-card deposit information to avoid the possibility of employee fraud. 7) Disclose return and refund policies clearly before a sale, and be prompt about cancelling or refunding transactions when customers request it. Payment Gateway When a Merchant is Considered Higher Risk If a merchant account repeatedly has too many chargebacks, is on the radar and considered a high risk by the acquiring bank and payment processor, this could end up being a death sentence for the merchant and business has problems with their quality of products, delivery times, or customer service, no merchant processor will be interested in doing business with this merchant. All merchant should be responding promptly to all customer disputes and other factors that could cause chargebacks and be fully be aware that your acquiring bank and payment processor can cancel your account at any time if you hit or exceed their chargeback threshold. If the chargeback threshold is over 1.0 - 2.0 percent, your bank may sever its relationship with you immediately. As you shop for credit card processing and a merchant account, take the chargeback threshold section seriously. If you don't, you can end up on a Terminated Merchant File List or TMF list and possibly never be able to accept credit cards again. No merchant can expect to avoid chargebacks entirely but knowing your threshold can help you take the necessary steps to keep them under control. Always pay attention to whether your acquiring bank and payment processor has a chargeback management staff available to help you deal with customer disputes. This can be a very useful service that protects you as a merchant as well as the merchant service provider and payment processor.