Hosting Merchant Account

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So you have successfully launched your web-hosting service. You’ve got a business plan and a strong desire to grow rich. The next step is starting accepting money for your services, right? If so, you’ve come to the right place. At Ikajo International, we understand and appreciate your needs and goals. Moreover, we’ve got the right tools for you to open a hosting merchant account.

What is web hosting?

A web host, also known as a web hosting service provider, is a business that provides services needed for the websites to be seen on the Internet. As a results, websites are hosted on special computers called servers.

Why hosting business is considered high-risk

Just like gambling or escort, hosting is a high-risk type of business. That means that not all the PSPs are willing to take it on and process its transactions. Take a look at this list to see the main reasons why a hosting business is considered high-risk:

The high rate of chargebacks. Web hosting merchants do not offer physical products. This, in turn, leads to a high percentage of chargebacks. Why is it so? Customers might say that they never received the services or if they did, it was of a lower than expected quality. It takes time and effort to prove otherwise.
The high rate of fraud. Online businesses often become targets of fraudsters. This is the second reason why web hosting businesses are considered high-risk. The best PSP for a web hosting business must have a PCI DSS certificate.
Wide range of non-physical products. Besides hosting itself, merchants provide a wide range of additional services. Domain registration, web design, logo design are on the list. Once again, these services have no physical product. Moreover, most of them do not require a signed contract. That, in turn, adds to the risk.

What are the core needs of hosting merchants

Take a look at this list to see the critical needs of any hosting merchant:

Recurring billing. First and foremost, hosting services require the ability to process payments automatically. The hosting business model is to blame. The price or recurring vary from PSP to PSP. Hence, consider those companies that offer the best deals possible. It will save money and increase monthly revenue of yours.
Security. Credit card fraud is one of the biggest concerns of modern-day companies. Those opening a hosting merchant account should be very careful when choosing a PSP. A reliable company provides a businessman with a variety of tools to protect both merchant’s and client’s financial safety.
The wide range of payment methods. Web-hosting business targets clients from all over the globe. To satisfy the needs of international customers, merchant has to offer various payment methods. Consider those payment service providers with a wide range of payment methods.
Affordable pricing. Despite sufficient income, web hosting businesses are less expensive as one might think. No wonder, merchants are opting for payment service providers with affordable transaction fees.

Why Ikajo

Ikajo International makes payment processing easy and smooth. The 15+ years of experience turned us into professionals. We provide hosting merchants accounts easily as we have multiple acquiring banking partners all over the globe. Contact us today, and we will help you to find a perfect payment solution.