How Canadian EFT Can Help High-Risk Merchants
Payment processing can be a serious problem for merchants in high-risk industries, least of all being the Cannabis sppace. They tend to be seen by banks and processor partners as not worth the trouble—too risky, for too many reasons, to actually be the kind of clients one wants. Yet, as more and more trades and services go online, the existing solutions for “high-risk” payment processing are becoming outdated. Merchants in high-risk sectors aren’t going away, and Canadians in those “high-risk” situations need a secure, efficient alternative to good old EFT.
Understanding EFT and Its Benefits
A digital payment system called EFT allows money to be transferred directly between bank accounts. Payments made by credit card are sent through intermediaries and often come with higher fees and risks for the merchants involved. EFT transactions are almost always a better solution, working directly with banking networks.
High-risk merchants receive key advantages from EFT, such as:
Lower Transaction Costs
The fees that credit cards and EFTs pay to a bank for processing a payment transaction usually go to the same bank. When you swipe your card at a store, those funds first go to the store’s bank before getting routed to your bank and then to the store.
Reduced Chargeback Risk
High-risk industries have a lot to lose when it comes to chargebacks. When comparing EFT payments to others, they offer a much more stable option for merchants since they amass fewer chargebacks. Why? Because the way an EFT payment works requires a kind of customer authorization that not all other payment methods necessitate.
Improved Cash Flow
Electronic funds transfers guarantee timely payments, which help businesses maintain a steady cash flow. This is vital to all businesses. But it’s particularly crucial for high-risk ventures that often work with tight margins and need consistent liquidity.
Increased Accessibility
EFT enjoys wide acceptance in Canada and integrates well with diverse business management tools, making it a convenient option for high-risk merchants who want to diversify their payment options.
Industries That Benefit from EFT
Industries considered high-risk—such as online gaming, subscription services, cannabis and debt collection—can benefit from EFT. These businesses can offer their customers a payment method that is both secure and reliable, and that in itself allows them to serve their customers more effectively, with fewer financial and operational risks.
Final Thoughts
For merchants considered high-risk in Canada, EFT offers a reliable and secure payment solution that meets their special needs. By using EFT as a platform, these merchants can lower their costs, reduce their risks, and achieve a much higher level of operational efficiency, thereby increasing their chances of long-term survival in a fiercely competitive marketplace.
