Payment Processor, Digital Goods
Music, mobile apps, e-books, video tutorials, downloadable software (Digital Distribution), streaming media, webinars, blog posts, cards, patterns, website themes, templates, etc. fall under the category of digital goods.
Things stated above show the huge change in the trend of the market and how the usage of them has increased in number. Hence, the traditional media has fallen aside as it’s not that convenient. Where after digital goods have taken over the market as they’ve become more convenient and easier to access.
INCOME SOURCE FOR MERCHANTS
Here comes the earning point of the merchant; the digital goods give away the best platform to earn by giving access to download the content, image, video, etc. and at the same reach a greater demographic. The payment processors are the biggest hurdles for the merchants since these businesses fall under the high-risk category.
WHY DIGITAL GOODS MERCHANTS ARE CONSIDERED AS HIGH RISK?
Merchants are left to deal with chargebacks and engage with the customers to arrange the dislocated money back to the business. Meanwhile, this industry is considered a high-risk business because there are huge numbers of fraudsters to gulp out your profits. Usage of different IP addresses and choosing different numbers with the same address can lead to loss to the merchant.
It’s very difficult to pass the stages of difficulty and to figure out the fraudsters. Digital goods can get easily monetized and they are valuable for fraudsters. The fraudsters in a loop repeat these things and the merchant fails to encounter them.
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Payment Processor Risks
Merchants are served with the payment processors and payment gateway. Choosing the right payment processor is a must for the merchant as there are different payment processors, which give different services.
To save your business, enable special fraud-fighting tools within your high-risk payment gateway. Take proper advantage of early warning chargeback systems to help mitigate risk. There are amazing payment processing solutions that meet the special needs of the digital marketplace. Investigate carefully, and then watch your profit growth.
Few providers serve as the best processor; at times these providers have different underwriting and infrastructure that enable them to support the business that doesn’t sell physical products. Only a few providers fit into the requirement.
RECURRING BILLING FOR DIGITAL MERCHANTS
Any merchant who is into the digital world should implement online payments as soon as possible. Many reasons make digital goods profitable once they are online. The good advantage is the result after the recurring payment feature. This feature stabilizes the cash flow and extends the lifetime value of a customer.
Subscription billing automates payment processing and helps the merchants to manage payments. Customers like the facilities of a recurring payment with no additional action necessary.
Offering customers the option to choose the services, which they like allows the merchant to advertise and sell a new range of services and products.
The merchant needs to understand and accept the recurring payment plan. A merchant should have a proper plan to avoid chargebacks, which may become riskier for the merchant later by losing the recurring customer.
We have a lot more ideas to guide merchants who face a lot of obstacles in their businesses under the high-risk industry. Merchant Stronghold gives proper guidance to newcomers and who already exist in the market and are still facing issues. Call Merchant Stronghold at +1 (888) 622 – 6875.