Merchant accounts for furniture shops

Many merchants are surprised that furniture shops are classed as high risk, we look at the reasons why

Why are furniture shops classed as high-risk in the world of merchant accounts?

Applying for a furniture merchant account can come with its difficulties as the industry is deemed high-risk. For most this is hard to understand, as the sector is one with a reputable and profitable history. The reasons for the ‘high risk’ name tag is due to the number of chargebacks experienced by furniture companies this is normally due to the period from order to delivery date. Also, although the transactions may be fewer they are normally at large amounts – known as high ticket items.


How to find a merchant account for an online furniture shop

When searching for a merchant account it’s important to know the costs involved and therefore be able to compare like for like when sourcing quotations. Most companies make the mistake of comparing accounts on the rates alone. The rates are charged per transaction and vary dependant on the type of card being processed. Other charges include; authorisation fees, PCI and minimum transaction fees. For our guide on what to expect CLICK HERE.

Furniture payment gateways

To process furniture orders online you will require a payment gateway. The payment gateway acts as a safety net for your clients encrypting their card details to ensure that the transaction is safe and secure. The payment gateway sits between the customers payment details and your merchant account.

Merchant accounts for furniture businesses are not difficult to secure, if you deal with a high-risk expert. An independent broker will be able to help you package your application to a high-risk provider in the best possible way, giving you a better chance of being accepted.


What to expect when applying for a furniture merchant account?

Due to the high risk nature of furniture card processing, it’s important to understand the associated costs involved in the industry. There are a few specifics to look out for;

Rolling reserve – if your furniture business is new to processing card payments, or you have a history of chargebacks, it’s sensible for the bank to offer processing with a rolling reserve. Simply put, this means that they will keep a proportion of the card payments back for a stated period of time as a ‘buffer’ and to counterbalance the risk involved in processing furniture card payments. Once you have been accepting transactions for a while, the rolling reserve can sometimes be renegotiated.

Slightly higher rates – depending on your turnover of course! Expect marginally higher processing fees, especially if you are a new business.

Multi-merchant accounts – furniture companies sell what is known as high ticket items and sometimes the banks will serve notice to furniture companies due to their risk appetite or criteria changing. Larger furniture companies choose to have more than one merchant account working in the background. Meaning that if you were served notice you’d be able to continue as normal with the ‘back up’ account.

Fast clearing furniture accounts

Be it a smaller business or a well-known high street brand, fast clearing is vital to ensure stock is replenished. We work with providers who can offer next day clearing, meaning that funds can be settled quickly and efficiently.


Chip and Pin machines for furniture business

Although face-to-face transactions are deems slightly lower in the risk scale, compared to online furniture purchases, finding a suitable chip and pin solution can sometimes be tricky. Ordinarily terminals are hired on an annual basis. At Merchant Advice Service, we work with providers who will consider applications from high-risk industries.

Card Processing for furniture insurance companies

A common trend within furniture sales is for third parties to offer accompanying insurance, especially when selling white goods and electrical items. These accounts are incredibly difficult to place, with very few suppliers accepting applications from insurance merchants. Speak to our experts to conduct a free of charge business review.

Served notice by your current provider?

High-risk merchant account providers are constantly reviewing their attitude to risk. If you have been served notice this may be because your current provider has too many similar businesses on the books. It doesn’t mean that you will be unable to find an account elsewhere. SPEAK TO US TODAY.

At Merchant Advice Service, we deal with industry experts who make applications for furniture companies globally. Our advisors will guide you to make sure you get the most from your merchant account and payment gateway. Do not pay over the odds.


Switching merchant accounts

Like everything nowadays it’s important to regularly review your merchant account costs, switching accounts can have a huge effect on your bottom line. This should be compared on a pound for pound basis and not done on the rates alone. Our experts can help you to find lower costs, making your profits go further.


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