High Ticket Merchandise [What Is a High Ticket Item]

While most businesses strive to sell high-ticket merchandise (because it is usually associated with more profit, there can be downsides as well.

One downside, which we’ll be exploring in this article is that high-ticket merchandise can make your business a higher risk in the eyes of payment processors.

As a result, certain business owners have to consider alternative payment processing options such as offshore payment processors.

In this article, we’ll take a closer look at high-ticket merchandise and why payment processors (and many banks) consider it to be high risk.

Feel free to use the table of contents to jump ahead to any sections that are immediately relevant to your search.

Table of Contents

  1. High-Ticket Merchandise 101
  2. Frequently Asked Questions
  3. Ready to Explore Your Options

High-Ticket Merchandise 101

As mentioned, when it comes to selling high-ticket merchandise, business owners may face challenges finding payment processors that are willing to serve them.

One of the main reasons for this is that the negative impact of a chargeback on a single order can be considerably higher.

For reference, a chargeback refers to a disputed charge or fraud claim by a credit card provider. The normal chargeback rate is approximately 0.5%.

With this standard rate in mind, a retailer with low-priced merchandise would have a reasonably low value of chargebacks.

For example, a retailer with $10 products at 0.5% will not represent a significant value to the business, payment processor, or credit card company. This reduces the overall risk of chargebacks for all parties involved.

However, with high-ticket merchandise, even a single chargeback can represent a significant amount of money for all parties involved in the transaction, which raises the risks.

As a result, many mainstream payment processors prefer to avoid high-ticket merchandisers altogether. Instead, they opt to serve businesses selling lower-value products where chargebacks will not have an outsized negative impact on the business.

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Frequently Asked Questions

Below are two of the most common questions that we receive from people looking to understand their payment processing options for high-ticket items. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.

What Are Considered High-Ticket Items?

High-ticket items cover a wide range of industries and product categories, from luxury items like jewelry and watches to large items like cars and boats.

Of course, high-ticket items also include online purchases, memberships, and other forms of product fulfillment.

In general, most payment processors consider anything over $1,000 to be a high-ticket item. However, most payment processors will have their own policies surrounding specific thresholds.

What Is High-Ticket E-commerce?

High-ticket e-commerce products cover a wide range, typically consisting of products over USD $1,000. That said, every payment processor will have its own thresholds in terms of what they consider high tickets for e-commerce businesses.

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