Coins & Collectables

Why Coins & Collectables businesses are considered High-Risk?

 A coins and collectibles merchant account is classified as high risk for a variety of reasons making it difficult to find a payment solution.

Authentication and Fraud

  • Difficulty in verifying the authenticity of items
  • Attractive targets for fraudsters and scammers
  • Payment disputes and legal action due to disputes over authenticity
  • High-value items targeted by fraudsters using stolen credit cards and other forms of payment fraud

Pricing and Value

  • Unique nature of items can make it difficult to price
  • Buyers may have unrealistic expectations of the value of items
  • Disputes and chargebacks can occur if buyers feel they have paid too much for an item

Shipping Risks

  • High-value items pose a risk during shipping
  • Lost or damaged shipments can lead to disputes and chargebacks
  • Shipping internationally presents additional challenges and risks

 

Coins & Collectables merchants face significant risks when selling online due to the high value, rarity, and uniqueness of the items they sell. To mitigate these risks, merchants should implement strong fraud prevention measures, maintain accurate inventory records, and use secure payment and shipping methods. By taking these precautions, Coins & Collectables merchants can protect their businesses and their customers from the risks associated with selling online.

For professional numismatists buying and selling rare coins, precious metals, and collectibles this can be very frustrating as they have a good brick-and-mortar store and are looking for expansion through selling via online and e-commerce.

What are mitigation measures for Coins & Collectables merchants to reduce risks when selling online​

  • Use secure payment gateways: One of the significant risks of selling online is fraudulent transactions. Using a secure payment gateway with fraud prevention tools like 3D Secure can help you minimize the risk of chargebacks and fraudulent payments.
  • Verify buyers’ identities: It’s important to verify the identity of buyers before completing transactions. You can request proof of identification, such as a driver’s license or passport, and match the information provided with the payment details.
  • Set clear policies: Have clear and concise policies in place for your online store. This includes your refund, return, and exchange policies. Make sure to communicate these policies clearly to your customers.
  • Use tracking and insurance for shipping: When shipping high-value items, it’s essential to use a tracking service and insurance to protect against lost or damaged items during transit.
  • Maintain accurate inventory: Maintaining accurate inventory records can help you avoid overselling or selling items that you don’t have in stock. 
  • Use secure packaging: Ensure that you use secure packaging to protect the items during shipping. This can help prevent damage during transit and reduce the likelihood of disputes.
  • Stay informed of market trends and risks: Keep up to date with the latest market trends and risks, such as counterfeit items, and take appropriate measures to mitigate these risks.
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Being a high-risk merchant vs. a regular merchant

  • Higher payment processing fees
  • Lengthier application process
  • Higher chargeback fees
  • Cash reserve requirments:
    • Capped reserve
    • Rolling reserve
    • Upfrom reserve
  • Volume caps
  • Additional technical requirements
  • Being on the TMF / MATCH list

 

Check out our knowledge hub to learn more about what processing fees, application process, chargebacks and cash reserve requirements or TMF / MATCH list mean. 

Other risk factors?

There may be other risk factors as to why you as a Coins & Collectables are classified as a high-risk merchant, such as:

  • Accepting subscription-style payments

  • Being on the Member Alert to Control High-Risk Merchants, or MATCH list — a list managed by Mastercard that monitors merchant behavior, like chargeback history

  • High average transaction sizes

  • High sales volumes

  • Highly regulated industries

  • International sales

  • Large number of card-not-present transactions

  • Little to no business experience

  • Long fulfillment time frames

  • New or poor credit scores

  • Past fraud or illegal activity

As Coins & Collectables merchant how to find a payment provider?

It takes effort for businesses to secure a payment processing partner when they are considered high-risk but it is definetly possible to find the right payment solution if you focus on:

  • Maintaining healthy cash levels. Most processors would like to see a healthy cash level in your business bank account. 
  • Try to reduce chargebacks. There could be a number of factors behind the soaring number of chargebacks in your business. Whatever the reasons may be, you can always analyze them and try to reduce your chargebacks.
  • Be transparent. Disclose all materials and relevant information during the application process. Payment processors may ask you for very detailed information about your business and finances. Be open, honest, and transparent.
  • Keep your documents ready. This could mean having six months of bank statements and a few years of tax returns. That said, each processor has its own set of requirements so make sure to check them.
  • Follow the guidelines of your payment processor. When you apply for a high-risk payment solution, besides your business needs, the risk the payment solutions provider takes also matters. So, be flexible and see if there are things you can do to reduce your risk by discussing with them and following their recommendations.

Our Platform will find the right payment solution for your business

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We provide payment solutions for merchants with a 90% Succes Rate by Algoritmic matching and pre-KYC onboarding in each industry and region globally.