Why Are Pawn Shop Merchants Considered High-Risk?
Pawn shops are classified as high-risk by many payment processors due to the nature of the business, which involves loans secured by collateral and the buying and selling of second-hand goods. Potential challenges include fluctuating collateral values, disputes, and the risk of handling stolen goods, which may lead to legal and financial complications. Additionally, pawn shops often face a higher risk of chargebacks, as disputes over items or loans can occur more frequently.
Traditional payment processors avoid high-risk industries due to the financial risk posed by chargebacks and potential legal liabilities. Fortunately, High-Risk Match specializes in serving high-risk industries like pawn shops, offering secure and flexible payment processing solutions that reduce your business’s risk exposure.
Merchant Account Types for Pawn Shops
At High-Risk Match, we understand that pawn shops have diverse needs. That’s why we offer several types of merchant accounts to help you process payments efficiently, whether online, in-store, or over the phone.
Online Payments
Many pawn shops are now expanding into online sales to attract a wider audience. With our secure online payment gateway, you can accept credit card payments for items sold through your website. We offer fraud protection and chargeback mitigation tools to safeguard your business and ensure secure transactions with customers from all over the world.
Retail Payments
For pawn shops that rely on in-store sales, we provide industry-leading POS systems and card readers. Our solutions allow your business to accept all major payment methods, including contactless payments and EMV chip cards. With over 87% of in-person transactions in the U.S. now using EMV technology, having modern payment options is crucial for customer satisfaction and loyalty.
Over-the-Phone Payments
If your pawn shop needs to take payments over the phone or via email, our virtual terminals make it easy. These terminals allow your staff to enter card details into a secure portal, enabling card-not-present transactions for customers who cannot visit your shop in person.
What Are the Requirements for Pawn Shop Credit Card Processing?
To open a merchant account for your pawn shop, you’ll need to provide some documentation to meet industry regulations and ensure compliance. Here are the required documents:
- Proof of Identity: Government-issued ID, such as a driver’s license or passport
- Bank Processing Statements: 3–6 months of bank processing statements
- Signed Merchant Application: A signed application form to initiate the process
- Corporate Documents: Business registration and corporate formation documents
- Voided Check or Bank Letter: To verify the business’s bank account for payment deposits
- Address Verification: A utility bill or other document proving your business address
- Sales Tax Certificates: Proof of compliance with state and local tax regulations
- List of Suppliers: A detailed list of product suppliers
Along with the required documents, your business website must comply with industry standards, including:
- Business Name and Logo
- Contact Information: Business phone number or email
- Privacy Policy Page
- Terms and Conditions Page
- Return and Refund Policy Page
- SSL Certificate: Secure your website with an SSL certificate for encrypted transactions
By ensuring you have these documents and website standards in place, you’ll streamline the approval process for your pawn shop merchant account.
Why Choose High-Risk Match?
At High-Risk Match, we dedicate ourselves to providing high-risk businesses with the payment solutions they need. Here’s why pawn shops trust us for their payment processing:
- Access to Merchant Accounts: We offer specialized accounts for high-risk businesses, ensuring your pawn shop can accept credit and debit card payments with ease.
- Dedicated Account Manager: You’ll be assigned a dedicated account manager to guide you through the application process and provide ongoing support for your business.
- 24/7 Customer Support: We offer around-the-clock customer support to help you resolve payment issues quickly and effectively.
- Pawn-Specific Features: Our payment processing solutions include fraud protection, chargeback mitigation, and features specifically designed for pawn shops.
- Affordable Processing Rates: We provide competitive rates for processing transactions, ensuring your business can thrive without excessive fees.
- Industry-Leading Hardware and Software: We offer state-of-the-art POS systems and virtual terminals to streamline your payment processes.
- Seamless Integration with Third-Party Apps: Easily integrate our payment solutions with your existing software, such as CRMs, accounting tools, and more.
Integrations for Pawn Shops
At High-Risk Match, we make sure your payment systems can work with the tools you already use, ensuring that your business runs smoothly and efficiently. We offer seamless integration with a range of third-party platforms, including:
- Customer Relationship Management (CRM) Tools: Manage customer data and communications easily
- Accounting Software: Sync your payment processing with accounting systems for simplified financial reporting
- Inventory Management: Track your pawn shop’s inventory while processing payments simultaneously
Best of all, your dedicated account manager will assist you in setting up these integrations, ensuring that everything runs smoothly and efficiently for your pawn shop.
Ready to Get Started with High-Risk Match?
If you’re ready to secure a reliable and flexible payment solution for your pawn shop, contact High-Risk Match today. We offer tailored merchant accounts and expert guidance to ensure that your business is fully equipped to handle all payment needs—whether in-person, online, or over the phone.
