Merchant Processing for Pawn Shop

Why are Pawn Shops Considered High-Risk?

Pawn shops are deemed high-risk by merchant account providers primarily due to the inherent characteristics of their operations:

• Nature of Transactions: They deal with secured loans using personal items as collateral, which introduces risks related to loan defaults and the fluctuating value of these goods.
• Goods Handling: The buying, selling, and pawning of second-hand items, especially the risk of dealing with stolen merchandise, adds another layer of risk.
• Chargeback Vulnerabilities: The pawn industry faces a higher incidence of chargebacks, where customers might dispute transactions, leading to potential revenue loss for both the pawn shop and the payment processor.

The stigma attached to pawn shops, combined with these operational risks, results in heightened scrutiny from payment processors. High chargeback rates can lead to penalties from card networks, prompting many standard providers to steer clear of high-risk sectors like pawn shops.

However, Moneybox steps in with expertise in serving the pawn industry, offering access to advanced payment solutions. Our dedicated account managers work with you to tailor payment features that enhance transaction ease while mitigating additional exposure to risk.

Pawn Shop Merchant Account Solutions

Moneybox acknowledges the dynamic changes within the pawn shop industry and offers a diverse set of payment processing options to cater to every pawn shop’s needs. Our merchant accounts come in various forms:

Online Payment Processing

With the trend of pawn shops expanding into e-commerce to amplify in-store inventory visibility, Moneybox offers robust payment gateway solutions for secure online credit card transactions. Our systems are fortified with advanced fraud detection and chargeback prevention tools to minimize the risk of digital fraud. We facilitate a straightforward and safe payment experience for customers globally, allowing your pawn shop to transcend local market boundaries and reach a worldwide audience.

Retail Payment Solutions for Pawn Shops

For pawn shops where physical retail transactions constitute a significant revenue stream, Moneybox offers in-person payment processing that simplifies and enhances employee and customer experience. The importance of a seamless shopping experience cannot be overstated. Our state-of-the-art card readers and POS systems are designed to accommodate the payment preferences of your clientele, including the prevalent use of contactless payments, which over half of Americans prefer, and EMV chip technology, used in the vast majority of in-person purchases. We collaborate with our clients to tailor these in-person payment systems, incorporating functionalities that cater specifically to the unique needs of pawn shops.

Over the Phone Payment Solutions

When your pawn shop requires the ability to process payments remotely, our virtual terminals come into play. They enable your team to manually enter a customer’s card information into an intuitive online interface, allowing for the seamless acceptance of credit card payments even when the card is not physically present. This service greatly enhances convenience for customers who are unable to come to your store in person.