Guide to High Risk Merchant Account Providers
There are some types of businesses and industries considered as problematic or risky in the processing world, where everything must be subjected to ideals. To name a few examples of these high risk businesses we have medicinal marijuana companies, subscription -based companies or adult entertainment providers. Is you business a high risk one? Have you been turned down by a credit card processor for being a high risk merchant?
You need not worry about this because there are a lot of high risk merchant account providers who specializes in exactly what you need. These providers are there to help you out.
You need to understand that not all providers will consider your business as high risk. This issues has to do with risk department underwriting guidelines, and thus is purely subjective. Strict guidelines don’t approve high risk businesses. You can get a merchant account for providers whose guidelines are relaxed.
Providers for high risk businesses given these merchants higher rates because of the risks but they provide them with good services. Perhaps your industry is known for its high incidence of chargebacks or fraud or maybe it is a bad credit that you have. Are you an offshore business? Are the things you are selling in the borderline of not being legal? Do you have questionable sales and marketing tactics?
As I mentioned above, there are more providers who are risk averse than others, they don’t want to deal with any business that may pose a bigger threat of losing them money, so they avoid those business types and types of people altogether.
But to those providers who service them despite being anticipated as high risk, the rates and fees associated with high risk merchant accounts are typically higher than those of a standard account. And these accounts for the calculated risk that is involved in this transaction.
But despite the higher rates and fees, it is still beneficial to your business because with a merchant account you can accept debit and credit card payments safely and conveniently. And this is important because this world no longer runs on cash but on plastic. Your potential for profit will be greatly hindered if your business is denied the ability to securely complete credit card transactions.
And to ensure that things runs smoothly with each transaction, providers for high risk businesses employ staff that would work with you as with any other business. You will have no problem setting up your high risk merchant account because the staff will be there to set it up for you and if you need multiple accounts, then they will also help you set them up. This allows them to spread the risk involved with their transactions over multiple networks.