Maybe you’re just starting a business and you are considering a high risk merchant services account? Perhaps you sell a niche product? Regardless of what the case may be, you’re having trouble obtaining traditional merchant services. Put simply, the bank finds you to be too big a risk.

Fortunately, there’s an alternative available: high risk merchant services. What do these services entail? What are their benefits?

We’re going to get into all of that and more below. Without further ado, here’s everything you need to know about high risk payment gateways and payment solutions.

What Are High Risk Merchant Services?

To understand the concept of high risk merchant services, you must first understand the concept of traditional merchant services. Merchant services refer to the services that a bank provides so that a company can accept different types of payments.

In most cases, this refers to the acceptance of debit and credit cards. However, it also covers the realm of online payment processing.

With traditional merchant services, there’s generally a credit score requirement that must be met in order to receive such services. In addition, the provider of such services must find that your business is viable enough to justify providing such services. Therefore, if you sell a niche product, your application for such services might be denied.

Effectively, the service provider considers your business venture to be “high risk”. In other words, they’re not confident that your business is going to make enough money through their services in order to justify them giving them to you.

This is where high risk merchant services come into play. These services are available to essentially anyone, regardless of credit score, products sold, or otherwise. They ensure that you’re able to make card transactions, and thereby help to either improve the success of your business or, at the very least, keep it afloat.

Who’s Considered High Risk?

We’ve discussed what high risk merchant services are. Now, let’s discuss the types of companies that might need them. In particular, there are companies that bring more risk to the table than the typical company.

They possess a variety of characteristics. Let’s discuss them in detail below.

Those Who Sell High-risk Products

There are low-risk products and high-risk products. Low-risk products are things like clothing, books, and office supplies. They sell on a regular basis and will almost certainly trigger regular card payments.

High-risk products are things like software, tickets, and electronics. They don’t sell quite as often, and also have a higher risk of return. This makes them riskier for payment processing companies to get behind.

Those Who Sell to High-risk areas

Another group that might need high risk merchant services is those who sell their products to high-risk areas. This includes, in most cases, impoverished or underdeveloped countries.

If the majority of your sales come from these countries, you’re going to have trouble obtaining a standard merchant account. As such, you might have to go with a high risk account instead.

Those Who Receive Many Chargebacks

Does your company sell a product that results in a lot of chargebacks? If so, you might have to get a high risk merchant account as opposed to a standard account. This is because chargebacks can make it difficult for merchant service providers to financially justify providing their services to you.

Those Who Offer Subscription Payments

Do you sell subscriptions? If so, there’s a decent chance that you’ll need to use high risk merchant services as opposed to standard. Subscriptions leave a high risk of missed payments which can financially hurt the service provider. Therefore, the company is forced to take on more liability.

High Risk Merchant Services Benefits

High risk merchant services are beneficial in a number of ways. Some of their biggest benefits include the following:

Available to Anyone

The biggest benefit of high risk merchant services is that they’re available to everyone. It doesn’t matter whether you have bad credit, experience an abnormal number of product returns, sell a niche product, or otherwise, you can get your hands on high risk merchant services.

This is simply not true of traditional merchant services, which come with credit requirements and are dependent on the acceptance of banks and other rigid financial institutions.

Worldwide Processing Capabilities

Another big benefit of high risk merchant services is that they come with worldwide processing capabilities. As such, regardless of where your customer is located, you will be able to accept their credit cards and debit cards.

This opens you up to an endless number of clients, all of whom can contribute to keeping your business thriving.

Work for Both Debit and Credit Card Payments

Whether your customers pay with credit or debit cards, high risk merchant services will accommodate you. These services work with cards from a variety of brands, allowing you to accept payment from as many people as possible.

Secure Processing

Not only are high risk merchant services worldwide in their capabilities but they’re also highly secure. Regardless of where the payment is made, it will be encrypted so as to allow for as much security as possible.

This means that there will be almost no chance of data theft. That, in turn, is good for the reputation of your company.

Need High Risk Merchant Services?

Are you in need of high risk merchant services? If so, look no further than First Financial. We provide such services to countless clients in countless industries.

Regardless of your credit score and regardless of the products you sell, we can provide you with high-quality merchant services at reasonable interest rates.

Contact us now to discuss details!

Cash Discount Processing: Everything You Need to Know

Cash Discount Processing is the wave of the future. According to a Federal Reserve study, people use cash for approximately one in five transactions in the United States.

Some stores and businesses offer a cash discount program. These businesses take a certain percentage off the total purchase if customers pay with cash.

Any business owner considering a cash discount program probably has questions. You might wonder how these programs work, if they’re even legal, and how much you can save.

Read on to find out everything you need to know about using a cash discount processing system!

Video: Cash Discount Processing: Everything You Need to Know

Cash Discount Programs: An Overview

Cash discount programs are a way to offset the cost of credit card fees. Any business or individual who accepts credit cards can offer a cash discount.

Essentially, with this kind of program, customers paying with cash can save a percentage of the total price. When customers use a credit or debit card, they cover the cost of the transaction fee.

Your processor will give you a lower rate on processing fees if customers pay with cash. Some people prefer to pay with cash, and these customers are more likely to choose your business if you offer a cash discount.

Businesses that offer a cash discount can also use it to attract new customers. Not only can you use this program to save money on your transaction fees, but you can also generate more business.

How a Cash Discount Program Works

Many transactions use credit cards, especially with online sellers, but the fees can make businesses less profitable. Cash discount programs are a great way for businesses to encourage customers to pay with cash.

The simplest form of a cash discount program is something like, “If you pay with cash, you get 10% off your purchase.”

This type of program is useful for any business that accepts credit and debit cards, but some are better suited for them. Businesses with a product or service that rarely changes are good candidates for a cash discount program.

Examples of businesses that should consider cash discounts include:

• Restaurants
• Cafes
• Service businesses (plumbing, HVAC, pest control, etc.)
• Medical clinics
• Automotive shops
• Salons

Businesses with a more extensive inventory might have a harder time implementing a cash discount. Large retailers, for example, have a constantly changing inventory that makes it more difficult.

The reason certain businesses are better suited for cash discounts is because of how pricing works.

When you offer a cash discount, you include the cost of credit card processing in the advertised price. If a customer pays with cash, they pay a discounted price.

To cover the cost of card processing, businesses must alter their pricing structure. A business that moves a large volume of products will therefore have to work much harder changing their prices.

As a result, food vendors and businesses with a small selection of services are a better choice for this program.

Surcharges vs. Cash Discount Programs

Many business owners confuse cash discounts with surcharges. However, cash discounts and surcharges work in very different ways.

It’s important to understand the differences before you decide which one is right for your company. Cash discounts are easier and more common, and have fewer legal issues.

A surcharge is a fee added to the advertised price if a customer pays with a debit or credit card. With a cash discount, on the other hand, customers paying with a card pay the advertised price.

This makes cash discount programs more flexible merchant services overall. They can be implemented with minimal changes to your business model (and without any need for additional equipment).

Surcharges can also be difficult if they’re applied across multiple products or services. For example, products with varying amounts due at checkout can confuse and frustrate your customers.

Cash discounts also allow users more flexibility when planning out their purchases in advance. They also don’t require any change in customer behavior, such as making sure they know about all applicable fees.

With a cash discount, customers view your payment options as a chance at saving. With a surcharge, it seems more like a hidden fee.

Are These Types of Programs Legal?

When you offer different prices to customers based on their payment method, it can raise legal questions. Businesses may be hesitant to implement a cash discount because they aren’t sure if it’s entirely legal.

Businesses using a surcharge are more likely to run into legal issues. Although legal in most states, surcharges for credit cards have to be clearly displayed at the point of sale.

Some states have outright bans on surcharges for credit card transactions. Cash discount programs, however, are legal anywhere in the United States.

With a cash discount program, the vendor adjusts the price of each product or service to account for the cost of processing fees. When a customer pays cash, the vendor applies the discount at checkout.

Because the customer never pays more than the advertised price (except with regard to taxes), there are no legal issues.

Save on Credit Card Processing

A cash discount program is one of many tools available to help you save money and make your business more profitable. Unlike a surcharge, customers don’t pay an added fee when they pay with a credit card.

Instead, customers who use a card pay the advertised price, while cash-paying customers get a discount. Businesses can use their cash discount program for advertising while saving money on credit card processing.

First Financial offers merchant services with 24/7 customer support. If you need a way to accept credit cards, we can help, even if you’ve been turned down by traditional banks.

Contact us today to learn about our financial services!

Start a Local Small Business

Starting a local business is a great way to contribute to your community. Experts say that 68% of the money spent at small local businesses stays in the community in the form of taxes paid, local workers paid, and partnerships with other small businesses or nonprofits, versus 43% of money spent at non-local businesses. Although starting and running a successful business requires some planning, it’s possible.

Do the research first

Before you do anything else, take time to do some research on the local market to see if there’s a need for a product or service that is not being met. When you know know what products and services you want to offer, find out if others are already filling this niche. As there seems to be a place for your business, then go ahead and create a budget and a business plan. If your business will have a brick-and-mortar presence, find a good location. Set up a website for your company; this is critical if you won’t have a physical store open to the public.

Consider making your business an LLC

While creating the business plan, you’ll be thinking about how you want to organize your company. A limited liability corporation (LLC) has many advantages, such as protecting your assets, simplifying paperwork, allowing more flexibility, and there may be tax advantages. You could set this up yourself, although other options include hiring an attorney. Try to do it or using a formation service, which is less expensive. Before you proceed, be sure to read reviews of the various professionals and services so that you’ll know you’re working with a reputable company.

Not sure you’re ready yet?

You might want to go back to school in order to earn your bachelor’s degree in business before jumping into being an entrepreneur. Degrees in finance, accounting, management, communication, or a general business degree can provide you with skills and knowledge that will help you establish your business. Many online programs make it possible for you to work or even run your own business while earning the degree. An additional benefit might be that you’ll make some useful contacts who can mentor or partner with you later.

Engage with the Community

Once you’ve got your business started, it’s important that you get the word out with marketing as well as make an effort to engage with the community. Consider sponsoring a local sports team, event, or music festival; the connections you’ll make and the visibility of your business will be valuable. Your social media presence is important, so set up pages for your company on one or two different platforms. Later on, you can assign the maintenance of social media to an employee if this is not something you enjoy. Do your own shopping locally as much as possible, both to support your community and to get to know others and make them aware of your own offerings.

Make sure your business participates in local events such as festivals and fund-raising. You might consider pairing with another local business or non-profit to offer mutual promotion and hand out fliers or discounts for each other. Employ local workers as much as possible.

Starting your own local small business can be a good thing for both you and the community.

Besides offering employment to local workers, you’ll be creating revenue and, therefore, tax dollars that go back into the community. Once your company is up and running, you’ll be showing out-of-town visitors what a great place your town is and possibly attracting more investment in the community. Whether you return to school for a business degree or plunge in using the knowledge you already have, you’ll be adding a beneficial enterprise to the neighborhood. If you choose to make your business an LLC, you’ll be protecting your assets and gaining some tax advantages.

If you’re looking for a company you can trust or some other type of loan, consider First Financial, where the process is streamlined online.

How to Supplement Your Income With A Side Gig: The Essential Guide

In today’s side gig economy, many people are looking for ways to make extra money on the side or to replace the income they’ve lost due to being laid off or underemployed. After all, unemployment rates are at an all-time high. But the good news is that now more than ever, there are many ways to supplement your income or make some extra money. Here, First Financial shares some ideas to get you started:

Offer Freelance Services

If you have a skill or talent that others need, consider offering your services freelance. The gig economy in the U.S. is booming, so this is the best time to get started. There are many websites and platforms, such as Fiverr, Upwork, and Freelancer, where you can market your services and connect with potential clients. The best part about freelancing is that you’ll be able to use your pre-existing skills or experience to get started. For example, if you have a keen eye for detail, organization, and problem-solving, you could offer freelance interior design services. You can enhance your credentials (and earning power) by obtaining interior design certifications when listing your services. This certification, for example, will show potential clients that you have mastered specialized interior design skills.

Start Your Own Business

Starting your own business is an excellent option, as this will ensure you make money and the hours you need on your own schedule. When doing so, do your due diligence on the ins and outs of running your company. You should research selling and marketing strategies and deeply understand your niche and demographic. Another essential element is business structure. Forming an LLC for your business structure has several advantages, such as tax benefits, limited liability, and reduced paperwork. States have different regulations around LLC formation, so check out the rules in your state before moving ahead. And if you’d like to avoid the hefty lawyers’ fees and legwork, you can use a formation service to simplify the process.

Potential Side Gigs

In addition to the options mentioned above, there are so many more side gig opportunities out there! You could also utilize talents you may have that you didn’t know were marketable. Let’s see some ideas below:

• Pet sitting services: If you’ve always been good with animals, you could start your own pet-sitting empire.

• Social media marketing: Always been good at handling socials and have a prowess for organization? Social media marketing may be calling your name!

• Create an online course: If you have specialist knowledge in specific topics such as traveling tips or healthy cooking, you may want to sell an online course or ebook.

Finding Work

There’s no one answer for how to find work you love. The important thing is to keep exploring and trying new things until you find a career that suits you. Talk to people in different fields, take on internships, and volunteer for organizations you’re interested in. Once you have a better idea of what you want to do, research different companies and look for job openings that match your skills and interests. Don’t be afraid to apply for jobs slightly out of your comfort zone – you never know what you might end up loving. The most important thing is to stay positive and keep exploring until you find your perfect career.

Ready to get started on making that moola with a side gig? Whether you’ve been laid off or just looking to supplement your income, remember that there are so many options out there! No matter your skill, experience, or preference, you’re sure to find the work you are looking for.

For more informative resource guides, check out First Financial for articles and content.

What Happens if You Don’t Pay Back a Loan? The average American has $90,460 in debt, so most adults are familiar with loan repayments. These are usually manageable amounts paid monthly to chip away at debt slowly.

Considering that loan amounts are huge, it’s not unusual for it to take years or even decades to make repayments in full. And when something takes this long, it’s common for slipups to happen from time to time. You might accidentally pay a week late, or worse yet, completely forget a payment.

What happens if you don’t pay back a loan though? Read on to find out everything you need to know about this topic.

What Happens if You Don’t Pay Back a Loan?

If you don’t pay back a loan in only a few days, then it’s considered delinquent. If your payment is late by at least 30 days though, then it’s considered in default (more on this later).

Here are some consequences if you fail at paying a loan back.

You’ll Need to Pay Late Fees

If there were no late fees, then borrowers wouldn’t be motivated to make payments on time. So if don’t pay back a loan, you’ll have something extra on top.

Every lender will set their own late fees, so check your loan terms or the lender’s website to find out exactly how much you’ll pay.

Your Credit Score Might Take a Hit

You can be reported to the credit bureaus if you miss payments. But the good news is, if you miss one by just a few days or a week, it’s not likely it’ll be reported.

Don’t make a habit of late payments though. Just one might be reported, which can damage your credit score. And if a few get reported, this can really sink your score.

Either way, the blemish can stay for up to 7 years on your credit report! This means it can take a while to rebuild your credit score, so you want to avoid this at all costs.

You’ll Default on Your Loan

A loan default happens when your monthly payment is over 30 but under 90 days overdue. The exact days will depend on the type of loan you have and what the terms are.

Once you default on your loan, it’ll go to collections, which can be in-house or a 3rd party. Both will try to contact you to receive the leftover loan amount, so expect them not only to call you, but also to text and email you.

If you have a secured loan, then the lender might seize the collateral. If it’s unsecured, then they (either the collector or lender) might take you to court or place a lien on something like your house (if you own it). It’s also possible for them to have your wages garnished.

If you had a co-applicant for the loan, then they should be aware that they’re responsible to pay should you default on your loan.

What Should You Do if You Can’t Pay Back a Loan?

Making a payment late is better than not paying at all, so you should schedule a payment as soon as you can. If this isn’t possible within 30 days of the due date, then here are some things you can do.

Speak to Your Lender

If you already know you can’t make a payment on time, contact your lender.

Many will work with you so you’ll stay with them as a client. For example, they can temporarily suspend payments or defer them.  You might also be able to negotiate lower monthly payments so they’re easier for you to budget.

Borrow Money From Your Friends and Family

Those who have good support networks may have some friends and family members who will want to help. Borrowing from your loved ones is the best solution since there are typically no interest rates involved and repayment terms are much more flexible.

Financial matters can cause tension in relationships though, so it’s understandable if you don’t want to ask your social network for money.

Use a Payday Loan

If you’re employed, then consider getting a payday loan to make a loan payment on time.

However, you should only save this for emergencies, as payday loans come with the highest interest rates around. But they can help you in a flash since the application process, approval, and loan disbursement all happen within 24 hours.

Consolidate Your Debt

Debt consolidation is when you combine all your debt into one loan, usually a personal one.

Not only does this cut down on stress since you only have 1 monthly payment as opposed to multiple, but it also cuts down costs. When you transfer all debts to one loan, you typically end up with an overall lower interest rate to pay.

Do note that while this doesn’t eliminate your debt, it does make it easier to manage.

Make Sure You Pay Back Your Loans on Time

So what happens if you don’t pay back a loan? Several things can occur, and they can all be detrimental to your future.

It’s important that you’re diligent with repayments, as a single late one can negatively affect your credit score. But life happens sometimes, and you don’t have the funds to cover everything.

If you have a poor credit score and/or need money fast, and can’t wait until your next paycheck, then consider a cash advance. This fast money can cover unexpected expenses to lessen your burden immediately.

Find out more about cash advances today. You can apply for one and receive money within 24 hours if you qualify.