Long gone are the days when cash was the preferred form of payment. Around 33% of consumers use their credit cards to make a purchase. 38% of people opt to use their debit cards.

If you’re running an e-commerce business and accept credit/debit cards, you might’ve come across the term “high-risk merchant.” It can be intimidating if you discover that your company has been labeled as one. There are many reasons why a business selling a certain type of product might be considered a high-risk merchant.

This guide will discuss everything you need to know about high-risk merchants. We’ll also talk about what high-risk merchant accounts are and if your business needs one.

What Is a High-Risk Merchant?

A high-risk merchant is a physical or online business that sells products that fall into specific categories. These types of companies have a higher likelihood of fraud or chargebacks. Online businesses can fall into this category because they can’t physically see their customer’s credit cards and verify their identity.

Some industries that fall into the high-risk category include:

• Auto sales and warranties
• Alcohol
• Computer sales
• Charities
• Gambling
• Furniture sales
• Jewelry
• Pawn shops
• Subscription boxes

Many characteristics might label a business as high-risk. In addition to the qualities we mentioned above, some other features include:

• Large transaction amounts
• Recurring billing
• International sales
• Accepts foreign currencies
• No or poor credit history
• Non-existent or inadequate credit card processing history

There isn’t a universal standard or set of rules when it comes to determining if a company is high-risk. Each payment processor and bank abides by its own set of standards.

What Is a High-Risk Merchant Account?

High-risk merchant accounts are a type of bank account that’s set up by a payment processor. These accounts enable businesses to accept debit and credit cards even if they’re considered high-risk.

The money that gets collected during a transaction, minus processing fees, gets transferred to the business’s checking account. It typically takes 24 to 48 hours for the merchant to receive the funds.

High-risk merchant processing gives these companies the ability to accept debit and credit cards. If you fall into this category, you should explore payment processors that offer high-risk merchant services.

What’s Different About High-Risk Merchant Accounts?

High-risk businesses have a higher likelihood of their application getting denied by banks or payment processors. However, some organizations have more relaxed standards when it comes to accepting businesses. They might also be more willing to work with you by enforcing additional measures low-risk businesses don’t experience.

Payment processors and banks have many ways they can reduce their risk when working with these types of companies. There are also big differences between regular and high-risk merchant accounts.

High Processing Fees

Some payment processing companies might charge around 0.3% for a standard business. That fee could be as high as 1.5% for a high-risk merchant. It’s important to understand their fees before you partner with a payment processor.

Lengthy Application Process

A payment processor or bank might ask for additional information when you apply for an account. They’ll want to use this data to look at your past finances. The bank might be analyzing your risk profile.

Other details they might want to review include:

• Partnerships
• Personal credit history
• Your business’s payment processing history

Be as transparent as possible with the company. Show how much money you have moving through your business. Good cash flow can improve your approval chances.

Cash Reserve Conditions

Another thing to consider is that the payment processor might keep a reserve of a certain amount of cash for your business. Examples of this include:

• Capped Reserve: A certain amount of cash is set aside until the reserve reaches the pre-determined amount
• Rolling Reserve: A percentage is set aside for every transaction and you’ll receive the reserve after a certain date
• Upfront Reserve: The merchant pays a set amount to the processor up-front

You should get as many details about their cash reserve requirements before you sign a contract. You don’t want to have to provide a large amount of cash upfront if you’re not able to.

Volume Caps

Some credit card processing companies might cap how many transactions you have. This is because they believe that they might encounter more risk if you have a high volume of transactions.

Increased Chargeback Fees

High-risk merchants might also have to pay chargeback fees when they process a refund. These fees may be higher to offset the risks the processor encounters with excessive chargebacks. These fees can range from $20 to even $100 each.

What Can I Do as a High-Risk Merchant?

Don’t get discouraged if you’re considered a high-risk merchant. There are many things you can do to keep your business in good standing.

Lower Your Chargebacks

Many e-commerce businesses deal with a lot of chargebacks. This is especially true if you sell clothing or shoes.

Make sure your product description matches what you’re selling. Include a detailed size chart to ensure your customers purchase the right size. Reduce your chargebacks so you can lower the related fees.

Get Healthy Cash Reserves

Many banks and payment processors want to see that you have healthy cash levels. Having a high amount of cash on hand shows them that you’re financially stable. You’ll increase your chances of getting approved at a low fee rate.

Be Honest

As we mentioned earlier, being transparent is key. Give the payment processor all the documents and information they need during the application process. Doing so will show them that you’re a credible business that they’ll want to work with.

Partner With a Reliable Payment Processor

Being labeled as a high-risk merchant doesn’t have to be the kiss of death for your business. Being proactive and doing research will ensure you get approved by a reputable payment processing company. Look for payment processors that work with businesses like yours to ensure you receive tailored services.

First Financial works with high-risk merchants, providing them with financial and payment processing solutions. Should you need help applying for a loan or other banking matter, we’re here to assist. Contact us to learn more about our services.

A recent survey showed that 70% of retirees would have advised their younger selves to save money sooner. Investing for retirement can feel pointless when you’re building a career and living week by week. But everyone deserves to live out their older years with financial security and freedom.

Retirement planning gives you more peace of mind and helps motivate you to keep working towards a new chapter in your life. Plus, it’s essential to think about retirement planning, as unexpected health costs can arise as you get older.

No matter your financial situation, this article will give you tips to invest in retirement and protect your future.

Is Investing for Retirement Worth It?

Investing for retirement is the best way to calm your nerves about the unknown. No one knows what could happen several years from now, so the only way to prepare is to take preventative measures. For example, it’s impossible to work forever, so you need to think about a time when making an income is not feasible.

Even if you stay in remarkable health until old age, there are restrictions to your quality of life if you don’t plan ahead. You can lose out on new trips or treating yourself to nice meals.

By law, the government offers social security to people past a certain age. You’ll likely receive a small amount every week if you pay social security. This is typically not enough to survive on a high quality of life, and you want to think about putting money aside before then.

If you plan with your own money, you have more freedom over traveling expenses, household items, and making memories with loved ones.

For people with younger family members, the responsibility of covering expenses will go to them if you don’t have adequate retirement funds.

The best investment for retirement will vary from person to person. It’s important to consider your priorities and what you want in retirement. Then, you can assess the options and find a solution that works for you.

How To Start Investing in Retirement

It’s never too late to think about retirement planning as long as you examine your finances and start a plan. Firstly, you should estimate how much money you’ll need for retiring and the timeline for reaching that saving goal.

Break down your income needs into two separate categories such as essential and non-essential costs. The essential section will include the living expenses like rent, food, clothes, heating bills, and general house maintenance. In the non-essential list, you must include hobbies, day trips, eating out, and leisure activities.

Even if your interests change over time, this estimate will give you an idea of how much you’ll need for this phase of your life.

If you want to retire in a different part of the world, it’s good to outline the cost of moving and other traveling expenses in your retirement.

Look at Income Options

Most people stop working as they reach their senior years, but it’s still possible to make money through passive income streams. This could be a real estate investment you made in your early 30s or a side business. Exploring the different investment options that can contribute to your retirement plan is good.

Some of the most common investment options besides real estate are stocks and bonds. But other options like Bitcoin can offer solutions to income worries.

A retirement IRA is a saving method created through traditional banking institutions. You can put money into these pots without tax and have a separate banking system for your retirement money. It’s an excellent way to keep track of your income when you’re young and avoids thinking about retirement.

Simply set up a retirement IRA and let the money build up over the years.

For people who want an alternative to traditional retirement IRA, you might want to consider a Bitcoin IRA. This allows you to invest in cryptocurrencies and maintain financial stability using technology.

Select a Retirement Plan

After you’ve researched the methods of making money in retirement and assessed your lifestyle expenses, it’s essential that you pick a plan. Always put your financial goals as a top priority when looking for retirement options, as it’s important to have control over your income streams.

Ask employers for more information on your retirement scheme if you already have one. Or, look at resources online to find reliable and trustworthy retirement schemes. Reviews are a good place to look when assessing which company is the right choice.

Hiring a financial advisor is possible if you handle large amounts of money from several places. This gives you an overview of where to save and if there are areas worth more investment.

Starting is the most challenging part when you begin financial planning and have no idea where to start. You’ll discover more tips and tricks as you start looking over your income records. So, it’s vital that you take those first steps and focus on creating a plan.

Automating monthly savings into retirement accounts is a great way to minimize the time spent dealing with transfers and juggling bills. Instead of organizing savings and checking numbers, this system moves your money on the same date every month.

When you have a retirement plan, it gives you more time to spend living in the present moment. And when you retire, you’ll be happy you took the time to think about how you’re going to make the most of your older years.

Future Retirement Planning Starts Here

Investing for retirement is the key to happy, long life. It avoids putting pressure on loved ones to cover your life expenses when you get older. And it helps you make clear decisions about your finances when you’re younger.

Being cautious about spending now means you have more funds to take adventures and make new memories in the future.

Our retirement IRA option is ideal for people who want to embrace technology and invest in their quality of life.

Find out more here about our retirement plans.

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You have had some financial mishaps lately and now you are in a bind. With a quick infusion of cash, you would be able to stabilize your finances enough to get back above water.

But how do you know if you are getting the best payday loans interest rate or not? Just because you are in an emergency situation doesn’t mean that you shouldn’t do your due diligence and try to get the best interest rates for your payday loan.

Keep reading to find out how you can do this.

Don’t Dismiss Online Lenders

Too many folks are a bit wary of getting payday loans from online vendors since they worry about unscrupulous lenders who are just out to scam unsuspecting people. But this could result in you dismissing the best payday loaners that are only available online.

If you only focus on the payday loaners who are situated around you in your neighborhood or city, then you could be doing yourself a disservice by not finding the best interest rates for your loan.

Remember that even a 0.25% difference in interest rates can make a huge difference in the time it takes you to pay back the loan and the amount of interest you pay through the term of the loan. Why pay hundreds of dollars more in interest charges when you don’t have to?

Online lenders are also sometimes more competitive than offline ones because there is so much competition in the online payday loan business that they have to have better offers to entice customers. They might give you better interest rates and also better loan terms in general.

Shop Around

Don’t forget that interest rates on payday loans aren’t governed by or affected by the Federal Reserve like mortgage rates or prime rates are. That’s why you get quite a variation in the interest rates presented to you by all the lenders on your shortlist.

You will be surprised at how much of a difference in interest rates you will garner just by shopping around a bit and comparing the various lenders available on the market.

Take your time with this. Even spending a few hours on this comparison shopping can result in a huge boon for you.

Yes, you might be in a rush to get a payday loan so you can stave off your creditors and other people hounding you to get their money back. But keeping a cool and calm head during this time will ensure you do the proper research and find the perfect payday loaner for you with the best interest rates.

This is another reason why you should be looking at online payday lenders as well as offline ones. It’s much easier to shop around for lenders online, as many of them are just a Google search away. And you can go on their websites and apply in a matter of minutes for a loan without worrying too much about fees or other issues.

Read the Fine Print Carefully

No one ever reads the fine print or the terms or conditions included within contracts, right? Well, that might be true if you buy a $400 camera or a $1000 bicycle. But when it comes to getting payday loans, reading the fine print is crucial.

Don’t be caught unawares later because you didn’t read all the loan terms properly and then had to pay a heavy fine for some minor misdemeanor.

There are going to be lots of little details on the agreement that you will want to comb through and ensure you are fine with. For example, lots of payday loaners will charge you for paying back your loan sooner than the loan term dictates.

If you know that you have some money coming in soon and you can pay off the loan faster, then you want to get a personal loan that doesn’t have such a strict stipulation.

Other things to focus on when searching through payday lenders are:

• Loan duration (shouldn’t be longer than necessary)
• Representative APR (aka interest rates)
• Loan amount (don’t take out more than you need)
• Repayment options (installments or lump sum payment)

Weigh all these options and pick the one that works best with your particular scenario. Everyone is going to be different in this regard, so what suits a friend or colleague of yours might not necessarily work for you.

Sometimes a Good Deal Isn’t That Good

Don’t get fooled by all the marketing gimmicks that online and offline lenders are always touting. Even if they say that they are the lenders with the best rates or the greatest deals, don’t believe them. They might be trying to sell a particular product to you that’s not suited to your specific situation.

As always, if a deal seems too good to be true, be wary and do a bit more digging into the fine print and the loan terms. There might be something you are missing or some important detail they are not sharing with you about the loan.

Better to stay away from such deals and go for something a bit more middle-of-the-road.

Payday Loans Interest Rate – Find the Best One for You

Financial troubles can make anyone’s logic go out of the window and result in bad decision-making all around. But if you don’t want to be stuck in a vicious cycle of loans and high-interest rates, then it’s important to find the best payday loans interest rate for you before committing to anything.

Find a company you can trust like First Financial and get a loan of $5,000 in as little as 24 hours. Don’t let a gap in funding result in financial strife for you and your loved ones. If time is of the essence, you can rely upon our personal loan services.

Buying Smart: Easy Finance Hacks for Homebuyers

When it comes to buying a property, knowing is half the battle. In fact, with the right tips and tricks. You can often save serious money on your purchase and ongoing rates. Today, First Financial explores a few of the lesser-known strategies to help you save money throughout the process.

Federal Housing Loans

Depending on your background circumstances it’s sometimes possible to receive support. Sometimes from the Federal Housing Administration (FHA) in the form of a loan. Unlike traditional lenders, FHA loans allow those with credit scores of 580 or above to pay as little as 3.5 percent on their down payment. FHA-approved lenders insure mortgages on single-family homes, multifamily properties, residential care facilities, and hospitals. Before applying, be sure to carry out research and ascertain the average down payment in your target area or percentage of homes that sell under their list price.

Seller’s Assist

When it comes to purchasing a property, many buyers aren’t aware of the option to ask the seller to pay a portion of the closing cost, and this can stretch to as much as 6%. This could allow you, the buyer, to save thousands of dollars on a purchase and increase your long-term ROI. To explore the option, check the seller’s assist option against your mortgage product – this is also a great opportunity to research the mortgages themselves and determine how much you can afford and which advantage you have. Typically, lenders will compare your credit score, current income, and employment against the amount you want to borrow.

Additional Finance Hacks for Homeowners

Cash-Out Refinance

If you’re looking to lower your rate, cash-out refinancing could prove to be a viable option for you. This replaces your current home loan with a bigger mortgage, thereby allowing you to take advantage of built-up equity and access the difference between mortgages. This cash can then go towards any purpose, such as home remodeling or consolidating high-interest debt.

Tax Saving

It’s often possible to save money on taxes when purchasing a home if you offer less than the advertised home appraisal price. Via this method, you can often get your taxes lowered to match the purchase price rather than the appraisal price. Although you won’t save cash on the purchase itself, you will save on taxes per year. Just remember, when filing your taxes, interest and property taxes are deductible and can be claimed for savings.

Getting a Home Warranty

You should also consider protecting your home with a home warranty, which covers the repair costs to major appliances. You might be asking yourself, “Is a home warranty worth it?” Bear in mind that the cost of repairing a broken A/C can cost upwards of $5,000! So investing in a home warranty can definitely save you money in the long run, should any such repairs become necessary, whether that’s a busted A/C in the winter or a broken down furnace in the winter.

Tips for Homeowners

Side Hustles

Many home buyers are unaware that, when it comes to a mortgage application, having a part-time job (or a ‘side hustle’) can help you to qualify. Typically, the borrower must show two-years of history working all jobs simultaneously and will request W2s from each employer. Make sure, however, that you do not enter into a second job too close to the date of your application, as this may be considered a risk to your monthly mortgage payments.

Credit Score Tune-Up

If you want to secure the best rate possible, it’s important to enter into the process with a good credit score – this can save you thousands of dollars over the lifetime of your loan. In the lead-up to your application, you can boost your score by paying down debts, increasing your credit limits, disputing errors, and more.

For most of us, buying a house is amongst the biggest investments we’ll make in our lifetime. Regardless of if it’s your first time, it’s important to enter into the process armed with the right information and a few handy hacks to boot, whether that pertains to investing in a home warranty or monitoring your credit score.

First Financial is committed to helping our clients do more with their money and get more out of life while helping them protect their financial futures. Call 800-315-7791.

A Guide to Starting and Growing a Green-Building Business

If you’re looking to start a business in the green-building industry, you have come to the right place. The green-building industry is booming, as more people are becoming increasingly aware of the importance of sustainable construction practices. Many factors need to be taken into account when starting and growing a green-building business. Including drafting a proper business plan to finding the right staff and investing in the right software. Dive into the details with this helpful guide from First Financial.

Business Plan Essentials

The first step to starting a successful green-building business is drawing up a comprehensive business plan. While it may seem like an unnecessary step, having a clear vision for your company will help guide you through every decision you make along the way. Your business plan should include objectives such as profitability goals and growth strategies as well as financial projections and market analysis. It should also detail what type of services your company will offer, who your target customers are, and how you plan to reach them.

Networking and Marketing

Starting a green-building business requires networking with potential clients and partners who can help you get off the ground. Attend industry events to meet potential clients face to face, or join professional organizations that bring together professionals from all areas of the green-building industry.

You also need to think about marketing — what kind of messaging do you want to put out there? Utilize digital marketing channels like social media, email campaigns, and SEO optimization so that potential customers can find your website easily on search engines like Google or Bing.

Finding Staff and Registering Your Business

To grow your green-building business, you will need reliable staff with experience. Peoplein the construction industry who share your values when it comes to sustainability and eco-friendly practices. This could mean hiring full-time employees or working with contractors on specific projects. it all depends on what works best for your company’s needs. When hiring employees, make sure they understand that being environmentally-friendly should be part of their job description!

Additionally, registering your green-building business with state authorities is necessary before any work can begin. This ensures that all legal requirements are met before contracts are signed with clients.

Investing in the Right Software

Once everything else is set up, investing in builder business software can help streamline processes. Estimating costs, creating contracts for projects, tracking progress on job sites, and billing customers accurately. All while keeping track of customer data securely in one central location. This type of software will save time and money for both you and your clients. Automating tasks that used to be done manually or by reducing paperwork associated with certain tasks, like invoicing or submitting bids for new projects. With this software, you’ll be able to quickly and efficiently create estimates. View projects with details that are kept in one central location. It even makes project management tasks such as job-site tracking easier and more efficient.

If you aren’t ready for a complex program like builder business software, consider this option: construction takeoff and estimating software. With this tool, you’ll be able to add material and labor costs to all of the estimates you’ve sent to (or are in the process of putting together for) your clients. You’ll also be able to collect online payments with it which simplifies paying off invoices. This ensures your customers and ensures you get paid accurately and more quickly.

Finally, connect with First Financial about our Merchant Services. We make it easy for you to collect credit card payments (of both the plastic and phone app varieties) so you can securely collect the fees you’re owed without hassle for you or your clients.

Starting a green-building business has its challenges, but if approached properly, these challenges can be overcome with relative ease. By taking into consideration all aspects — from drafting up an effective business plan to finding the right staff and investing in software solutions — you can build a successful enterprise within this ever-growing sector!

Is Taking Out a Personal Loan to Pay off Credit Cards a Good Idea?

If you have credit card debt, you are in good company. Studies show that the majority of Americans have some form of credit card debt. And 14 million Americans have five figures or more worth of debt from credit cards alone. Have you considered taking out a personal loan to pay off credit cards? Personal loans often have lower annual percentage rates (APRs), meaning you’ll pay less on the money you borrow. Yet, there are also some drawbacks to using personal loans to eliminate debt from credit cards. For example, you may not qualify for a personal loan APR that is lower than the rate you pay on your credit cards.

In this guide, we will tell you all the pros and cons of using loans for credit card debt. Plus, we’ll give you tips for paying down credit card balances if you don’t qualify for an affordable loan. Keep reading to learn more.

Taking Out a Personal Loan to Pay Off Credit Cards

In 2023, the average interest rate on credit cards is a little bit over 20%. This is an average, so some credit cards have lower APRs, and others have higher interest rates. On average, personal loans have lower interest rates than credit cards. In 2023, the average is around 10–20%. The exact rate you will pay on a personal loan depends on various factors, including:

• Your credit score
• Your annual income
• Your debt-to-income ratio
• Your employment status

Other factors, such as the term period on your loan and whether you take out a secured or unsecured loan, also play into your APR.

The Benefits of Paying Off Debt With Loans

A personal loan is one of the best solutions for paying off credit card debt in 2023. This is especially true if you can find an affordable loan (more on this later). Benefits of using loans for credit card balances include:

• Personal loans have lower APRs than credit cards
• You can pay off all your credit cards with one loan
• You only have to make one monthly payment going forward

These last two advantages only apply if you use your personal loan to pay off all your credit cards. We don’t recommend taking out a loan to pay off one credit card if you carry debt on multiple lines of credit.

The Disadvantages of Using Loans for Debt from Credit Cards

Of course, all these benefits can not come without some drawbacks. The following disadvantages of personal loans could make this option less attractive for certain borrowers:

• You may pay higher fees on personal loans
• You may not be qualified for a lower personal loan APR
• You may end up with more debt than you started with

The first two issues primarily occur when you have no credit, poor credit history, or a low credit score. The third con happens when people use loans to pay off debt but continue using their credit cards while paying on the loan. Luckily, financial institutions like First Financial offer personal loans for people with poor credit.

Other Solutions for Paying Off Credit Cards

So, what if you do not qualify for an affordable loan? In that case, the goal is to pay down your credit cards as quickly as possible. Why? The faster you pay down your debt, the less you forfeit in interest. Here are the top ways to do just that.

Stop Using Your Credit Card for Purchases

The first thing you should do is stop swiping. Use credit cards for emergencies only until you pay off your debt. Also, start thinking about what you will use your credit card for once you pay off your debt. Experts recommend reserving credit for the following big-ticket purchases only:

• Electronics
• Appliances
• Travel

Often, larger credit card purchases come with interest-free periods. For example, you may have six months to pay off your purchase before you’re charged interest.

Use Debt-Canceling Strategies

As we mentioned, credit card debt is extremely common in the US. Financial experts have come up with many strategies for eliminating credit card debt quickly. Some of the most effective strategies are:

• Paying off high-interest debt first
• Paying off the credit card with the lowest balance first, then add that monthly amount to pay down the next lowest balance
• Paying more than the monthly minimum balance

You can also come up with your own debt-canceling strategy based on your unique needs. The best strategy for you is the one that gets your balances paid down the fastest.

Do a Balance Transfer

Another idea to consider is a balance transfer. Many credit card companies allow you to transfer all your outstanding credit card debts to a single account. Often, balance transfers also come with a preliminary grace period where you don’t have to pay any interest on your balance. However, you may have to pay a fee on the balance you transfer. So, this solution may not be best for people with significant credit card debt.

Looking for Affordable Personal Loans and Credit Cards?

Taking out a personal loan to pay off credit cards can be a great way to get out of debt. But keep in mind that some people may not qualify for a personal loan without a good credit history. Are you searching for a personal loan you can qualify for? First Financial is on a mission to provide personal loans to borrowers just like you. Click here to get started on your loan application!