Large Ticket Credit Card Processing

Nathan Beck
June 23, 2024
3:29 pm

Large Ticket Credit Card Processing

The Large Ticket Program for credit card processing is a special program created by major credit card networks, primarily Visa and Mastercard, to bring greater value to businesses that handle transactions over $7500. The major credit card networks realized there was a market need to offer lower interchange rates and specialized processing terms to merchants dealing with large ticket transactions.

The goal of this program is to make it more cost-effective for businesses in industries such as luxury retail, automotive, real estate, travel, software, and event planning to process large payments, creating a win-win situation that saves merchants money and benefits the network by incentivizing businesses to accept credit cards for large ticket purchases.

Who is Durango Merchant Services?

Durango Merchant Services is a specialized payment processing company founded in 1997, focusing on high-risk processing need often overlooked by traditional banks and payment processors. We cater to a diverse range of sectors including large ticket merchants of all kinds.

We understand that businesses seeking large ticket credit card processing face unique challenges, so we offer tailored services to make sure you have reliable & economical payment solutions. Durango Merchant Services goal is to support you with customized payment processing options that meet your specific needs, helping you thrive in your industry while securing the best possible interchange rates.

What Sets Durango Merchant Services Apart from the Rest?

Deep understanding of payment solutions and technology
Robust network of banking relationships
State-of-the-art payment processing gateway
Customer specific consulting to help get approval
Omni-channel payment support
Recurring billing capabilities
24-48 Hour Payouts

Focusing on the growth and stability of our clients
Personal account manager with 10+ years of experience
eCheck Processing through ACH
Solid reputation in the payment industry
Ten's of thousands of merchants placed
Premium service for the high-risk sector

Why Is Large Ticket Credit Card Processing Specialized?

When it comes to the ticket value of products and services, some industries just naturally have higher prices than others. Generally speaking, a business that sells t-shirts will have smaller individual order charges than a company that sells high-end electronics, which will in turn probably have lower individual transactions than a fine jewelry retailer. Superficially, this seems obvious enough, but what isn’t always as immediately evident to the business owner is the way this shapes how a credit card processing company will view them when they apply for the large ticket credit card processing account.

Chargebacks Sting A Lot More When It's A Large Ticket in the $10,000+ Range

As a rule, payment processors are wary of businesses that have very large average transaction charges. To you, these big-ticket transactions represent profit – but to the credit card processor, they represent risk. High value charges are significant risks for your financial institution in two ways: first, if your customer is unsatisfied for any reason, the likelihood that they’ll do something about it is directly proportional to how much money they spent. A customer who spends $15 on a novelty coffee mug might just shrug it off and move on if you make an error with their order. That’s a much less likely reaction if they’ve spent thousands of dollars on a diamond tennis bracelet.

Fraudsters Love to Use Stolen Credit Card Info For Large Ticket Purchases

The second reason large ticket credit card processing is risky for banks is the possibility of fraud. Imagine an identity thief steals a victim’s credit card number and personal information. It’s much more likely he’s going to use that card to buy high-end electronics and other luxury goods, rather than a Venti latte. Large purchases of expensive items give fraudsters the biggest bang for their buck, and therefore those transactions tend to raise the most eyebrows with payment processors.

What Can Business Owners Do?

Of course, business owners aren’t indifferent to concerns about chargebacks and fraud, either. So what can you do to mitigate these issues? That depends in part on your industry. If your average sales transaction is well below $1,000 and you suddenly receive an order that’s an order of magnitude (or more) greater than that, it might be wise to request a different form of payment or – painful as it may be! – to refuse the charge outright. But that doesn’t exactly work if, for instance, you sell swimming pools for a living. Businesses that regularly deal in high-ticket-value items simply exist in an environment of greater risk, and while there are steps you can take to reduce the risk of fraud, you can’t eliminate that risk entirely, or even bring it down to the level of a business with smaller-scale charges.

Ultimately what this means is that you’re going to have a harder time finding a payment processing company willing to offer you a merchant account, and most of the ones who are willing to work with you will do so with risk management on top of mind. One thing you should take care to avoid is low-balling your estimated ticket size and monthly volume. Credit card processing companies ask on their merchant account applications about your expected average transaction size and monthly charge total, and if you regularly exceed the values you estimated by a large margin, you could find yourmerchant account suspended or even permanently shut down, which will make things much harder for you going forward.

Despite all this, large ticket credit card processing accounts aren’t doomed to excessive fees and huge rolling reserves simply in order to do business. Some payment card processors will negotiate with businesses in high-risk fields and reach terms that acknowledge the risk involved but still work for the merchant.

Durango Merchant Services has been helping businesses with their large ticket credit card processing for 2 decades. We have operations in the US, Canada, the EU and beyond and our gateway is PCI compliant, host multi-currency functionality and a suite of security and chargeback protection technologies. Contact us today to start the road to entering the large ticket credit card processing program.

A Few of the Industries that Can Enter Our Large Ticket Credit Card Processing Program

Large Ticket Businesses

Luxury Retail (e.g., high-end fashion, jewelry)
Automotive (e.g., car dealerships)
Real Estate (e.g., property sales, high-end rentals)
Travel and Tourism (e.g., luxury travel packages, private jet charters)
Event Planning (e.g., weddings, corporate events)
Marine and Aviation (e.g., yacht and aircraft sales)
Wholesale (e.g., large volume sales to retailers)
Construction and Contracting (e.g., large project payments)
Technology and Electronics (e.g., high-end gadgets and equipment)
Art and Antiques (e.g., high-value artwork and collectible sales)
Medical and Dental (e.g., expensive procedures and equipment)
Home Improvement (e.g., large renovation projects)
Education (e.g., tuition fees for private schools or universities)

Is It Hard To Secure Large Ticket Credit Card Processing?

It can be, but not always. Joining the large ticket credit card processing program can be a bit challenging for some businesses because of the high financial stakes involved for both merchants and processing banks. As we’ve discussed, big transactions mean there’s a lot more money on the line, making fraud and chargebacks riskier and more costly. Processors have to be extra cautious and often require businesses to meet compliance and security standards that are more strict than businesses with a low average ticket size. In addition to this, many large large ticket merchants have irregular sales patterns which further adds to the complexity of detecting and preventing fraud, ultimately making it tougher for these merchants to get approved for large ticket credit card processing.

On the flip side if all your ducks are in a row, you have a strong processing history, great credit and robust support then it can be substantially easier to join the large ticket credit card processing program with lower reserves and fees.

Base Large Ticket Credit Card Processing Interchange Rates

Large ticket interchange fees are special rates applied to high-value transactions, offering reduced fees compared to standard rates. Here are the typical large ticket interchange fees for Visa, MasterCard, and American Express:

Visa:

Large Ticket Level 2: 1.65% + $0.10 per transaction.
Large Ticket Level 3: 1.20% + $0.10 per transaction.

MasterCard:

Large Ticket: 1.45% + $35 per transaction.

American Express:

Large Ticket: Varies by merchant and industry. Typically, large ticket rates can range from 1.30% to 2.70%, depending on the specific agreement with American Express.

These rates are subject to change and may vary based on the merchant’s industry and specific arrangements with the card networks. Always check with the respective card networks or your payment processor for the most accurate and current rates.

Mastercard Interchange Fees

Visa Interchange Fees

How to Avoid Common Pitfalls in Large Ticket Credit Card Proceessing

Entering a Visa or Mastercard large ticket credit card processing program can be a great move for your business, but it’s important to be aware of the potential pitfalls so you can navigate them smoothly. These programs are designed to help businesses handle high-value transactions efficiently and cost-effectively. However, the stakes are higher, and the complexities are greater, so it’s important to be well-prepared. Here are some key points to keep in mind to avoid common pitfalls and ensure your experience applying for the large ticket credit card processing program is as seamless as possible.

Ignoring Fees: It’s easy to get caught up in the excitement of joing the large ticket credit card processing program and handling big transactions, but don’t forget to scrutinize all the fees. These can include transaction fees, monthly fees, setup fees, and various other charges that can add up quickly. Knowing what you’re getting into will help you avoid any nasty surprises on your statements. Durango Merchant Services works hard to keep these as low as possible. This program is designed to SAVE you money, so make sure that all the fees don’t add up to more than the savings. It shouldn’t be that way, even in a high risk industries.
Overlooking Compliance Requirements: Visa and Mastercard have stringent compliance and security standards that you must meet. This can involve implementing advanced security measures like PCI DSS compliance. If you overlook these requirements, you could face hefty fines or even have your processing privileges revoked. Durango Pay Gateway has everything you need to meet these security requirements.
Not Reviewing Contract Terms: Contracts are notoriously bland and filled with tedious minutiae, but it’s vital to read them thoroughly, including all the fine print. Look out for the length of the agreement, early termination fees, and any other binding clauses. Being stuck in a long-term contract with unfavorable terms can be a costly mistake, so make sure you fully understand what you’re signing up for. Durango Merchant Services is transparent with all of our merchant partners regarding the important details of the contracts we are involved in. The last thing we want is for a client to be surprised by something, so we just lay it all out on the table.
Neglecting Fraud Prevention: Large ticket credit card processing transactions are a magnet for fraudsters. Make sure you have robust fraud prevention measures in place, such as advanced authentication protocols and real-time monitoring. This will help protect your business and your customers from potential fraud. Our Account managers have helped thousands of merchants improve their use of the fraud prevention tools that are included in our gateway.
Failing to Negotiate Rates: Don’t just accept the first rate you’re offered. There’s often room for negotiation, especially if your business processes a significant volume of transactions. Take the time to negotiate better interchange rates and terms to save money in the long run.
Underestimating Chargeback Management: Chargebacks can be a major headache, especially with large ticket credit card processing. Develop a solid plan for handling disputes and chargebacks effectively. This includes keeping thorough records, responding promptly to disputes, and understanding the chargeback process inside and out.
Ignoring Customer Support Quality: The importance of reliable customer support can’t be overstated when dealing with large ticket credit card processing. Choose a processor that offers strong customer support so you can resolve any issues quickly and efficiently, minimizing disruptions to your business. We pride ourselves on excellent customer support and every account comes with a dedicated account manager with a decade or more of experience in the industry.

By being mindful of these points, you can steer clear of common pitfalls and make the most of your large ticket credit card processing program. This will help you manage high-value transactions with confidence and efficiency, ultimately benefiting your business’s bottom line.

Now let’s talk about what you should do to improve chances of joining the Large Ticket Credit Card Processing Program.

If you’re looking to get approved for the Visa and Mastercard Large Ticket Credit Card Processing program, there are a few things you can do to boost your chances. This program is designed to help businesses handle high-value transactions smoothly and cost-effectively, but getting approved can be a bit of a dance due to the higher risks involved. Processors want to see that you’re a stable, reliable business with good security measures and a strong financial footing.

This isn’t to say that there is no path forward if you have run into financial issues, Durango Merchant Services specializes in helping merchants that are down on their luck secure the payment processing tools they need to be able to run their businesses. So don’t hesitate to reach out to us if you can’t meet all of the below criteria and we will work with banks on your behalf to come up with a workable plan to allow you to join our large ticket credit card processing program.

Here’s a more detailed look at what you can do to improve your chances of joining the large ticket credit card processing program.

Organize Financial Documents: Start by getting all your financial ducks in a row. Make sure your bank statements, tax returns, and profit and loss statements are up-to-date and easy to access. This shows that your business is financially stable and transparent, which can help ease any concerns the processors might have.
Enhance Security Measures: Security is a big deal, especially with large transactions. Make sure you’re compliant with PCI DSS standards and have robust fraud detection systems in place. Encryption technologies and secure payment gateways are also a must. Showing that you take security seriously will make processors feel more confident about working with you.
Maintain a Strong Credit History: Your credit score matters a lot. Pay off any outstanding debts and avoid taking on new debt before you apply. A strong credit history demonstrates financial responsibility and reduces the perceived risk, making it more likely you’ll get approved.
Prepare a Detailed Business Plan: A solid business plan can go a long way. Outline your business model, target market, projected sales, and how you plan to handle large transactions. This shows processors that you’ve thought things through and have a clear strategy for success.
Build a Positive Processing History: If you already accept credit card payments, keep your chargeback ratio low and maintain a good relationship with your current processor. A positive processing history is a big plus and shows that you’re reliable and can handle large transactions.
Establish a Reserve Fund: Having a reserve fund set aside can demonstrate that you’re prepared for potential chargebacks or disputes. This reduces the risk for the processor and shows that you have a financial cushion to handle unexpected expenses.
Verify Your Business Information: Double-check that all your business information is accurate and up-to-date. This includes your business address, contact details, and legal structure. Any discrepancies can raise red flags and delay the approval process, so make sure everything is correct.
Strengthen Online Presence: A professional website and a strong online presence can help establish your credibility. Ensure your website is secure, easy to navigate, and includes clear information about your products or services. A well-presented online presence can make a big difference.
Seek Professional Advice: Consider getting help from a payment processing expert or a business advisor. They can guide you through the application process, help you present your business in the best possible light, and increase your chances of approval.
Build Relationships with Banks: Having good relationships with banks and financial institutions can be really beneficial. A strong rapport with these entities can lead to smoother processing and better support during the application process.

International Options for Large Ticket Merchant Accounts:

Durango Merchant Services works with several gateway processors and suppliers with sponsor banking relationships that provide both US based national and international credit card processing solutions for Large Ticket industry sectors. We can provide large ticket credit card processing in the European Union, United Kingdom, Canada, US & UK Territories as well as Puerto Rico.

Additional Benefits Of Our Large Ticket Credit Card Processing Program.

If you get approved for large ticket credit card processing with Durango Merchant Services, then you will also be eligible for other benefits that we offer, we can set you up with electronic commerce and recurring billing via our online portal. Businesses can receive the following additional benefits:

Integration with 150+ Shopping Carts
Robust Chargback prevention and Management tools
eCheck Processing through ACH
Industry Leading Fraud Detection & Prevention Tools
Dedicated Account Manager with a Decade or more of experience in the payment processing industry.

Durango Merchant Services Is Here To Help Secure Your Large Ticket Credit Card Processing Account

Our dedicated team has negotiated on behalf of more than 35,000 clients. We understand the back and forth and give and take of negotiating processing accounts for high risk merchants, including hundreds of businesses with large ticket sizes.

Give Durango Merchant Services a call or contact us through our application form to get started!

Typical Prices & Fees For Merchant Accounts:

Typical Terms in a Credit Card Processing contract:

Free Application Processing
Rolling reserve requirements that range from: 0% to10%
Variable contract lengths including availability of month to month
Direct financing with regular deposits
Minimum processing: $5,000 minimum for US accounts, $50,000 for international accounts

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Large Ticket Credit Card Processing