Merchant Account for Event Ticket Brokers
If you're running a ticketing agency, you need to know two realities about merchant accounts and ticket brokers. First is that the ticketing agencies need merchant accounts to operate, and second is that the ticket brokers are not the favorites of the credit card processing industry and are considered high risk by banks and underwriters.
We're all familiar with what a merchant account is and what its benefits are, but still, let us go over all that again to understand why exactly ticket brokers need to have a merchant account. Merchant accounts are basically the ideal solution for online businesses that want a swift and easy way to receive payments from their clients.
Merchant accounts offer a complete set of services, equipment, and software applications that are designed to automate the receiving of credit card information and transfer of the payments directly to the merchant's account. Basically, a merchant account establishes virtual terminals to let businesses receive payments without requiring a signature or card.
Now that we have discussed what merchant accounts are, you may have gotten a fair idea by now why these accounts are essential to ticketing agencies, but we'll discuss that further later.
Denied by Other Credit Card Processors?
It's actually very common that you'll get denied by credit card processors unless you're going to specialized ones such as this service. Common banks and underwriters make guidelines so strict that it's very difficult for a business like ticketing agencies to be able to get a merchant account.
Dealing with rejection by credit card processors isn't easy, and most people end up with the very first processor that'll take them. This is a poor decision as what you need to realize first is that there are specialized high-risk processors working for businesses such as yours. It's all about getting the best rates possible, but what's even more important is getting all the features and services you need for your business.
Risk Analysis of the Ticketing Industry
Let's talk about why a ticket broker is considered high risk by underwriters. This classification is based on the fact that this industry is a future fulfillment business. Surprisingly, it doesn't have anything to do with whether these ticket brokers are legal or not. What makes these agencies high risk is that there's a long period between when the customer makes the payment and when the product is delivered. This future fulfillment business model means that agencies have to seek out specialized high-risk merchant account providers. This is the only way ticketing agencies can accept credit cards.
Another reason this industry is high risk is that the number of chargebacks is very common in the industry. Banks and credit card processors really don't like that.
However, high-risk credit card processors usually charge higher rates and enforce deposit limits as well. With a bit of research, you can easily find that this service is the best when it comes to rates and deposit limits, and it also offers helpful customer support and supply equipment that'll save you time and increase your sales.
All of the ticketing agencies are now operating online. Booking or purchasing a ticket online is as easy as clicking on the website and entering your credit card details. It takes hours and sometimes just minutes for tickets to a major concert or sports events to sell out. It's really very swift and convenient for the agencies and ticket brokers as well as the customers.
But when you're working online, one issue is that you have to offer a sufficient number of payment methods to the customers so that you can cater to all your customers' needs. This is something that depends on the quality of your merchant account.
Therefore, this service is ideal for ticketing agencies because it offers credit or debit card processing services as well as merchant cash advances and online payment assistance. Most online merchants such as a ticket broker are classified high risk and are turned away by most processors, but this provider makes sure that you get the best service available and all your customers are able to make all credit card transactions easily.
Type of Merchant Account Required
Every business needs a different type of merchant account. While they all generally offer the same service, several features differ. Here are the services and features you should look for in a merchant account for your ticketing agency or ticket brokering business.
Online shopping cart integration is an important feature because your entire business is classified as ecommerce. You'll want your customers to be able to make online purchases easily.
Virtual terminals for credit card processing will help customers deliver the payments to you with the just credit card information. It'll make business easier for you as well as for them.
Internet marketing tools will help you further your business reach and gain more audience. A good processor will also offer you this service.
Multiple underwriting banks will ensure that your business keeps running even if one bank decides to halt your service. This way you’ll always have an alternative and your services will remain online all the time.
Affordable rates are also very important, and you should also look for a service that charges no application fees or setup fees.
A good customer support service is also significant, especially in the long run.
Domestic and Offshore Options
Having a domestic account is a much better choice because you'll get more security and affordable rates, but in some cases, having an offshore account becomes a must. Many services offer you both type of accounts, while some only offer offshore accounts. It's all about picking the account that suits your business.
Ticketing agencies and brokers will find that this service is ideal for their business because it has all the right features and affordable rates and fees. Having worked with ticket brokers, this service has the experience required to handle all your needs.