Paynovate: High Risk as Low Risk

This is the second in our blogs which takes a look at high-risk banking. It considers both the challenges and opportunities, especially from the point of view of one of the Paynovate mantras, High Risk as Low Risk. 

Let’s look at the challenges first. And let's remember that quite a few businesses can be characterised as high risk. 

Some companies operating within the cryptocurrency area always attract a lot of attention, a lot of it often unjustified. Even dealing with certain countries, ones that might have been low risk for decades, might suddenly be regarded as high risk, which can put you under the spotlight.

If you run what is categorised as a high-risk company, and that can mean anything from operating within a risky business area, to reputational risk, or legal risk, you can be in effect penalised. And that means you could struggle to establish a reliable payment processing system which means you will not only be less efficient, but also potentially out of pocket. You will face a number of barriers, from increased regulation to higher transaction fees. 

Many companies, especially when growing and looking to build a global marketplace, can suddenly find the brakes being put on, because the perceived risk is too high. And traditional banks and financial institutions are particularly risk averse. 

And once you start experiencing payment gateways and higher processing fees, you are looking at reduced margins and lower profitability.

The challenges mount up and this has the effect of curtailing your business opportunities. 

The biggest problems you are going to face is not knowing where your business might potentially fit with the risk assessment used by financial services providers and an understanding that the risk assessment is a fluid situation - it can change very quickly. 

So what’s the answer? You can’t continue to go head-to-head with those institutions who rely on wide sweeping and generalist assumptions about their customer’s business. 

What you need is a payment service provider that not only has a deep understanding of high-risk, but one which is able to navigate the complex regulatory landscape. You need a provider that can establish compliance protocols that meet industry standards, ensuring smooth and legal operations.

What’s more, a company that can provide tailor-made payment solutions designed

specifically for high-risk businesses. These solutions include secure payment gateways, fraud detection tools and chargeback management systems, which not only address the key security concerns, but, importantly, still offer a seamless customer experience.

And this is key for companies looking to expand globally. A progressive payment solutions provider is also able to facilitate international payment processing solutions, accepting payments from customers worldwide and opening up new avenues for revenue generation.

With a reliable payment processing system in place, high risk companies can experience a significant uptick in successful transactions, leading to increased revenue and business growth.

And leads back to the Paynovate mantra of High Risk as Low Risk. Our objective is to make it clear right from the start where they fit. Paynovate takes a systemic and highly detailed approach to eliminate businesses and industries that do not fit with our reasonable approach to risk management. This has to be the jumping off point and then that discipline continues throughout the lifetime of our customers, from onboarding to ongoing transaction monitoring.This acts as a further de-risking element, one which ensures a customer does not ‘sleep-walk’ into a high risk categorisation. 

With the right support, a company is able to enter international markets confidently. The ability to accept payments globally opens doors to a broader customer base, resulting in enhanced brand visibility and market penetration.

Secure transactions and streamlined payment processes also enhance customer trust and loyalty. Positive customer experiences lead to higher retention rates and positive reviews, which can further bolster a company’s reputation in the high-risk business sector.

In short, if you are a high risk business, you need a payments partner which can quickly overcome challenges, dismantle barriers and capitalise on opportunities within the business landscape. You need to be able to build on your partner’s expertise for customised solutions and global support. This not only establishes a robust payment processing system but also lays the foundation for sustained growth, increased profitability and enhanced customer satisfaction in the fiercely competitive high-risk industry.

Are you ready to talk with our team about High and Low Risk?

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