Load balancing is specifically helpful for high-risk merchants for many reasons. It is a vital need for businesses expanding globally to reach new customers. It can be difficult to even imagine the survival of a big-scale business without load balancing. The commercial entities that process high-volume transactions every single day in fact every single second needs to have a load-balancing system. Are you a high-risk merchant? If yes then in this blog you will enhance your knowledge about merchant account load balancing and its significance while knowing about the varied related factors.
What is high-risk merchant account load balancing/load balancing?
Yes, you can call it from several terms such as high-risk merchant account load balancing or load balancing, or just load balancing. The diversion of transactions to multiple merchant accounts is called load balancing. This helps improve the processing of high-volume transactions for a high-risk merchant account holder. Case Another good thing about load balancing is that the business owners can manage all the merchant accounts through one dashboard.
Advantages of load balancing
As you can already get the hint from the meaning that load balancing is an extremely useful thing for a high-risk merchant, let’s delve into more benefits of transaction diversion.
- Speedy transactions through timely diversion in case of any technical issues. It can be a true nightmare for a merchant to experience delayed transactions in case of a technical issue in the payment processor connected to a merchant account. What can be the most immediate solution other than diverting the transactions to another merchant account? Here comes the load balancing as a last-minute savior and it works amazingly to protect a merchant’s goodwill in the market. After all, customers are never going to be loyal to a brand that cannot facilitate speedy transactions. Can we wait for hours or even 10 to 15 minutes to pay for a product on an e-commerce website? No, it’s annoying, especially when happens in recurrence.
- Manage transactions easily despite monthly processing caps. Every merchant account has a processing cap applicable to the number of monthly transactions. After the transaction reaches the maximum limit, the processing should be done through another merchant account. This situation is quite relatable to casino merchant account holders that need to process a high volume every month. Merchant account load balancing can manage daily payments easily according to the processing cap applicable to every account.
- Ensure smooth business in case of a merchant account termination. We all know that this is the reality of high-risk merchants. In several circumstances, a merchant account can be terminated. For example, banks or acquiring banks merge or sign various agreements with other financial institutions which may result in the termination of merchant accounts from a certain industry.
Primary functions of load balancing
Besides diverting the transactions, merchant account load balancing has several other major functions. If you have a high-risk business, you should certainly know about them.
- Transaction monitoring
- Reduce chargebacks
- Mitigate risk
- Track sales volume
The merchant account load balancing is primarily useful for businesses with high-volume processing and card-not-present business transactions.
Is there any risk of merchant account load balancing for high-risk businesses?
There are several benefits of load balancing but it is good to know the other side of the coin. Yes, unfortunately, there are some drawbacks of load balancing that you should know about.
- High-risk merchant accounts and payment gateways for example adult toys merchant account providers or forex account-providing companies are always prone to blacklisting if the card networks find them guilty of committing any unlawful activities through load balancing.
- It can hurt thoroughly hurt the goodwill of a business because if a company gets into notice for using load balancing and it is presented with a wrong image, it adversely affects the brand image. No matter how fair the intention of the merchant behind using high-risk merchant account load balancing,
Despite the above risk factors, it will not be an exaggeration to mention that high-risk merchant load balancing is a great tool to help merchants avoid certain risks. Friendly fraud which is quite common and almost unavoidable in the e-commerce sector can be managed well through load balancing. Friendly fraud happens when a buyer demands chargeback despite receiving the right product with the intention to keep the product for free.
It can detrimental to the business because card-issuing banks always prefer the buyer due to the fear of not losing a cardholder. However, with other tools like transaction descriptor, a merchant can fight back such chargeback claims but they may also backfire on the merchant in many cases. Load balancing is also something that can help a gambling merchant and a gambling payment gateway provide ample proofs to fight against a false money-back demand.
casino payment gateway Sweden
An online casino payment gateway Sweden plays an essential role in receiving online payments from all around the globe. A casino payment gateway is a sort of mechanism that enables online businesses to accept and process online payments securely. It makes a significant connection between the merchants and customers so that customers can transmit their payment details to the merchant’s website, then the online payment gateway software validates the transaction details and proceeds to execute them securely.
So, if you want to operate an online casino business efficiently and with top-notch security of payments, you must acquire an online casino payment gateway. After exploring, you will find multiple payment processors in the industry. But you will need to prefer one for your business’s payment requirements. As per our suggestion, we recommend WebPays. WebPays is one of the leading payment service providers that delivers online payment processing solutions to high-risk businesses comprising gambling, casinos, adult toys, forex, IPTV, and many more. You will just need to contact us and share your business’s requirements and we will get in touch with you shortly. So, you can acquire the best payment processing platform for your online casino business.
Conclusion
Now that you are aware of the concept and pros and cons of load balancing, it should be easier to decide whether you should go for it or not. Rationally speaking, no tool or business strategy can be always good or always bad if it is about a high-risk business.
Also, different countries have different laws and rules for the business world and a merchant just needs to scrutinize them and then he can decide whether he should use them or not. A merchant account provider can give better suggestions on it. Visit webpays.com and get a practicable suggestion on what is best for your high-risk business. This merchant account and payment solution provider is an expert in high-risk industries and can offer quick solutions with customization.
