A Guide to High Risk Credit Card Processing
There are some types of businesses and industries considered as problematic or risky in the processing world, where everything must be subjected to ideals. Medicinal marijuana companies, subscription-based companies, or adult entertainment companies are some examples of businesses than can be considered as high risk. Does your business belong to this category? Have you already been turned down by a few credit card processors because to them, you are deemed a “high-risk merchant?
You don’t need to worry about this because today, there are high risk merchant providers that specialize in what you need. These providers are there to help you out.
It is good to note that one provider may consider you high risk, but another may not. This issues has to do with risk department underwriting guidelines, and thus is purely subjective. You won’t get approved if the guidelines are strict. You can get a merchant account for providers whose guidelines are relaxed.
But this is not the only scenario, there are also providers who really just specialized in high risk merchant services though they cater them with higher rates since to them they are dealing with crappier terms. Maybe your industry is known for having a high instance of chargebacks or fraud or perhaps you have a bad credit. Is the business you are handling an offshore business? Is what you are selling in the borderline on being illegal? And, are your sales and marketing tactics questionable?
There are some business that are really risk averse and they if your business poses a threat of losing money for them, they will avoid your altogether.
High risk providers usually give higher rates and fees associated with high risk merchant accounts which are higher than the fees for the standard account. And these accounts for the calculated risk that is involved in this transaction.
There will be a safe and convenient way to accept debit and credit card payments with your merchant account despite having high rates and high fees and it will still be beneficial to your business with a merchant account. This is important because it is with plastic that people pay goods now instead of plastic. And denying your business with the ability to securely complete credit card transaction could greatly hinder your potential for profit.
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. They also are willing to set up the ideal high risk merchant account for you and will even set up multiple accounts when necessary. This allows them to spread the risk involved with their transactions over multiple networks.