Best High Risk Merchant Account – It is virtually impossible for online merchants to operate without accepting credit or debit cards. However, before you can accept electronic payments, you need a payment processor. This is an entity that acts as a liaison between you and the bank and credit card networks.
Many brokers prefer to trade only with traders they consider to be “safe” or “low risk” investments. Companies considered “high risk” will have a limited selection of potential processors to choose from.
Best High Risk Merchant Account
In this article, we will discuss the ins and outs of risk trader accounts and processing. We’ll examine the additional costs and barriers high-risk merchants face and why they may pay more to handle payments. Finally, we will identify some providers that can help those in the most vulnerable verticals.
How To Find The Best High Risk Merchant Account Provider
A high-risk merchant account is a subset of services that enable businesses in high-risk verticals to accept card payments from customers. These accounts usually have stricter requirements and terms than regular merchant accounts and will be more expensive to maintain.
Let’s say you want to open a new merchant account to accept credit card payments for your business. Any processor you approach will closely and thoroughly examine your activity to determine if you fit their definition of “high risk.”
Processors place sellers into one of two categories, high risk or low (normal) risk, based on several factors. Ultimately, however, this decision is based on the level of financial risk that your business presents to the institution. Specifically, how vulnerable you are to fraud and chargebacks.
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Why You Need A Merchant Account For High Risk Business
High risk traders are faced with limited choices in processors. They will also have to pay higher fees to offset perceived risk and compete with more complex contracts.
Being called “high risk” sounds bad, at least at first. In some cases, however, it may be your best (or only) option.
Being a “high risk” trader does not mean that your business is less reliable than your peers. What that means is that processors tend to see a higher level of contention in your vertical. The risk is estimated based on the frequency of chargebacks the processor can expect to activate each month. It really doesn’t indicate your fit in the organization.
Let’s look at some of the things that can cause your business to be designated as high risk:
Trending Credit Card Processing Businesses 
Note that there is no middle ground here. Once the processor evaluates your activity, it will make an “either/or” decision. In the eyes of the processor, you are a high risk or not.
While not the end of the world, being a high-risk trader certainly comes with its own set of problems. Many legitimate businesses have labels and pay providers only for the number of products they sell per month. Perhaps the most common reason merchants are labeled “high risk” is the merchant category code, or MCC.
Some verticals have historically been more prone to chargebacks. Therefore, MCCs associated with such verticals are almost always considered high risk. Examples include:
You may also be required to obtain high-risk business services due to the method used to generate sales or leads. Examples of risky tactics include:
Best Credit Card Processing Companies
The opportunity to accept credit cards comes at a price. This is true regardless of which dealer you are dealing with. If you need to work with a higher-risk merchant account provider, however, the price will be higher in many ways.
Specialist vendors for high-risk businesses typically charge above-average fees and require strict contract terms. Some vendors specialize in helping businesses that other vulnerable processors have also turned down. Typically, the fees and contracts required by these companies are more complex than standard commercial processing.
Unfortunately, there are some scammers out there who target struggling traders. They offer support at ridiculous prices and on the basis of hard shell contracts that will be almost impossible to escape. Before signing up with any provider, be sure to do your research, check reviews, and consult reports from the Better Business Bureau and other advocacy groups. Finally, always read (or better yet, have your lawyer read) the fine print.
Account deposit is the payment processor’s way of depositing your bets. If something goes wrong with you, your buyer will be protected against loss and account savings. There are three basic types of storage:
High Risk Merchant Processing: Top Providers + How It Works
Many traditional processors may reject work that generates high returns. Therefore, it may sometimes be necessary to seek commercial risk services. Where do you start, though?
You want to find reliable processors that specialize in high-risk commercial solutions. But, before you choose a payment processor, make sure you filter their brand for terms and conditions and consider their fees carefully. Every platform is different. One may offer options that are more suitable for your business than those offered by a competitor.
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Here are just a few of the best high risk merchant account providers to help you start your search off right:
High Risk Merchant Services
Focusing on the riskiest eCommerce businesses, eMerchantBroker claims to approve 99% of all account applications. The company has a positive reputation for transparent customer service and reliable support.
CardMax Payments offers a simple account, easy setup and competitive pricing. Relationships with more than 30 domestic and international banking service providers help CardMax provide exceptional service and support.
Cayan has a reputation for helping businesses develop more meaningful connections with customers through modern payment solutions. They are also known for being reasonably priced and do not require an early termination fee (ETF).
With flexible multi-currency accounts, Durango Merchant Services works with both US and international merchants. The company gets high marks for excellent customer service and customized pricing plans.
High Risk Merchant Account Woocommerce
Global Merchant Advisors provides custom processing solutions that allow merchants to focus on growth instead of payments. GMA Consultants are available to guide traders every step of the way.
Host Merchant Services provides standard processing and specialized services for high-risk merchants. In addition to loyalty programs and gift cards, the company offers a free website and email service to new customers upon request.
HRMA-LLC specializes in high risk merchant account and ACH processing for high risk business verticals. They offer payment processing for almost every type of business venture. HRMA-LLC offers fast approvals with no setup fees.
With an omnichannel platform that adapts to any payment experience, Inovio is committed to simplifying the confusing checkout process. Their flexible APIs, seamless integration, and other services work with many payment technologies.
Ongoing Merchant Acquiring Fraud Risk Monitoring 101
Instabill offers PCI compliant solutions, including an online payment gateway, with global reach. They work with all major credit card networks and their solution supports international currencies, including British Pounds, Euros and more.
PayKings experts can help merchants set up a low-risk and high-risk merchant account that offers affordable merchant services, online credit card payment processing, and seamless integration with the merchant’s existing system.
With a reputation for transparent and honest marketing methods, Payline Data offers excellent customer support as well as a variety of pricing models that suit merchants. Monthly payments and no early termination fees are also an advantage.
PaymentCloud caters to a wide range of businesses, including high risk merchants, with a reported 98% approval rate for new merchants. Pricing is based on your transaction history, and the company has no account applications or setup fees.
High Risk Payment Gateway
Soar Payments offers excellent customer service as well as a good selection of pre-arranged service packages. The company strives to be transparent in its costs, to offer cheap, “haggle” prices.
Billing itself as a “new type of service provider”, T1 Payments offers flexible underwriting, a simple application process, affordable rates and professional support, all combined into a state-of-the-art solution with exceptional end-to-end service.
Despite all the disadvantages, some traders prefer, or at least are willing to accept, working with a risk trader account. Many verticals offer significant income opportunities if you are willing to accept the greater risk and profit retention that comes with it.
There’s another interesting aspect of high-risk accounts to consider, too: small chargeback penalties. Merchants are less likely to close a high-risk account due to excessive chargebacks, because this is why many merchants end up looking for high-risk merchant processing in the first place. Maintaining a high-risk merchant account can be more expensive, but it is a reliable way to ensure the possibility of trading despite the increased production of chargebacks.
International Merchant Account
That said, if you’re facing a high reimbursement rate or are looking to lower your reimbursement ratio to avoid higher costs… there are alternatives.
® empowers marketers across all customer channels, sales models and product verticals to increase profitability. We help regular merchants avoid excessive chargebacks, and we help high-risk merchants recover revenue that would otherwise be lost due to fraudulent chargebacks.
Contact us today for a free cashback analysis and find out exactly how much you can save.
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