With the ever-evolving advancement in the technology field, companies these days mostly offer non-tangible products online. These products are basically available in downloadable form. Some examples of digital goods can be software, an image or an audio file or a video file or an e-book. This industry is growing at a very fast pace because people need information and with the electronic form of information transfer, this can be done very easily. Taking an even broader perspective, apart from information, it can be anything in digital form viz. executable software or antiviruses, webinars or new letters, online coupons or tickets, subscriptions of services and a lot more.
There are a lot of sellers who offer products like software, eBooks, images, audios, videos and other related materials. They sell these products across the globe. They do not have to shift the product because the product is available in the downloadable form or can be transferred using e-mail or cloud servers. These merchants are basically selling digital goods or virtual goods. To make their business successful, they need a payment processing solution. The reason is quite simple, if you are selling online goods, you will have to receive payments online as well. For this purpose, they must avail a merchant account, a payment gateway, and payment processing solution.
At this point in time, getting a payment processing solution for virtual goods or digital good business is extremely difficult. The reason why it is difficult is that most of the financial institutions do not want to take the reputation risk. It will be easy to understand with an example.
Let's take, for instance, there is a merchant who is selling video courses and by any chance, if that merchant starts delivering improper video content online then that can attract reputation risk as well as financial risk for the acquiring bank or acquiring institution. Once the video content of that merchant is filed as illegal or inappropriate by the governmental authorities or online safeguarding organizations, the sell figure drops and transactions decline or the company is banned. This induces loss to the acquiring bank and processors as well.
Having said that still, there are multiple payment processing companies or payment service providers who would be interested in evaluating your application. To apply for merchant account for digital goods or virtual goods, you need to send an application to quadrapay.com. Along with the application you are also supposed to send the KYC documents. The KYC (Know Your Client) documents help the underwriters to understand and know exactly who is requesting the merchant account. Apart from this the underwriter also looks for financial stability, growing business model, genuine approach, projected overturn and target clientele with the complete range of products and services offered by the merchant. It will be great if you can share the processing statement with your current processors. This can help a lot in getting your account approved.
Most of the merchants who are selling digital goods prefer to utilize the API option that means customers visit the website and clicks on the ‘buy now’ button and then the transaction is processed. Along with credit card and Debit Card processing solutions, merchants selling digital goods in the United States of America can also utilize ACH or Echeck payment processing solution. Getting an echeck account will be a lot easier and very simple. The rate of transaction can be extremely low in comparison to the regular credit card processing solution for this industry. Certainly, because this industry is considered high risk, merchants are supposed to pay a much bigger transaction fee for this industry primarily because this industry is considered high risk. Still, it's always better to have a solution then not to have one. Another advantage of using echeck is reduced chances of chargebacks. The reason is chargeback timeframe in echeck payment option is quite low in comparison to credit/debit card payments.
If you are looking for a high risk merchant account for your digital goods business, you must try to find the most suitable option by comparing and evaluating their services to existing clients from the same industry. It seems a simple task but it is a tedious and tough process. Quadrapay.com can help you with its worldwide connections with the best-in-class acquirers, service providers, processors and payment gateways.
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