In the past, the primary way to buy furniture was to visit a brick and mortar retailer and make a purchase. Processing payments with furniture retailer merchant accounts was fairly secure because the business would have access to the card to process the payment. Today, however, furniture sales have moved from physical storefronts to e-commerce stores, too.
As a result, online furniture sales have become high-risk transactions for businesses in this industry. The reason they are deemed high risk has to do with several reasons, including:
- Transactions are processed online, so the business does not have access to the card. This can result in a higher number of fraudulent transactions and an increase in chargebacks.
- The cost of furniture can be expensive and, when combined with online sales, has increased risks because chargeback amounts will be greater.
- The retailer is new to the furniture industry and has not yet established their creditworthiness in regards to their furniture retailer merchant accounts and chargeback history.
- The credit rating of the business or business owner is poor.
- The retailer is taking presale orders on furniture pieces that will be delivered at a future date.
Furniture retailers can also be considered high risk by merchant providers if they process orders by mail or over the phone for the same reasons above.
How to Reduce Risks of Chargebacks
There are several ways you can reduce risks of chargebacks for furniture sales conducted online, by mail, or by phone. One way is to request the customer provide the code on the back of their credit or debit card. While this cannot stop all fraudulent transactions, it can reduce their numbers for transactions where the customer is not able to provide this information.
Another way you can lower the likelihood of chargebacks is to confirm the order after it is placed. For instance, you receive an order for several pieces of furniture and the payment was approved. Prior to shipping the furniture, you should verify:
- The name of the person who placed the order against the name of the cardholder.
- The shipping address of the furniture compared to the billing address of the cardholder.
- If you provide the delivery the furniture, you could have the delivery driver request the card with a valid photo ID upon delivery.
In cases where there are discrepancies between the customer and the cardholder’s names and/or shipping and delivery addresses, you may want to contact the cardholder directly, if possible, to confirm the sale.
How to Get a Merchant Account for Your Furniture Business
Here at Leap Payments, we offer high-risk accounts for furniture retailers and other businesses. Plus, we offer our Lifetime Rate Lock guarantee, along with regular reviews of your account. We work with you to find solutions to meet your specific business needs. To learn more about which type of merchant account is best for your business, call us at (800) 993-6300 today!
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