High Risk Merchant Account Providers

High Risk Merchant Account Providers – It is almost impossible for e-commerce merchants to function without accepting credit or debit cards. In order to accept electronic payments, you need a payment processor. This is an entity that acts as a liaison between you, banks and credit card networks.

Many processors prefer to deal exclusively with traders they consider “safe” or “low risk” investments. Companies that are considered “high risk” will have a limited selection of potential processors to choose from.

High Risk Merchant Account Providers

In this article we will discuss the ins and outs of high risk trading accounts and processing. We’ll explore the additional costs and hurdles high-risk merchants face and why they may pay more for payment processing. Finally, we’ll identify some service providers that can help those working in high-risk verticals.

A Complete Guide To Choose The Best High Risk Merchant Account Provider.

A high-risk merchant account is a subset of services that allows businesses in high-risk verticals to accept card payments from customers. These accounts typically come with stricter requirements and terms than standard 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. Each processor you contact will carefully and comprehensively review your business to determine if it meets their definition of “high risk.”

Processors assign merchants to one of two categories: high risk or low (normal) risk based on a number of factors. Ultimately, however, this decision is based on the degree of financial risk your business presents to the institution. Specifically, what is susceptible to fraud and chargebacks.

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Credit Card Merchant Services Vs. Payment Gateways (infographic Inside)

High-risk merchants face a limited selection of processors. They will also have to pay higher rates to compensate for the perceived risk and face tighter contracts.

Being labeled “high risk” sounds bad, at least at first glance. However, in some scenarios it may be the best (or only) option.

Being a “high risk” trader does not necessarily mean that your company is more unreliable than your peers. What this really means is that processors tend to see a higher contention rate in their vertical. Risk is assessed based on the frequency of chargebacks the processor can expect each month. It’s not really an indicator of your company’s value.

We break down some of the factors that can lead to your business being labeled as high risk:

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Note that there is no middle ground here. After the processor evaluates your business, it will make an “either/or” decision. In the eyes of the processor, it is either high risk or not.

While not the end of the world, being a high-risk trader certainly presents a number of complications. Many legitimate businesses receive a tag from a paid service provider simply by the number of items they sell per month. Perhaps the most common reason for merchants to be labeled as “high risk” is their Merchant Category Code, or MCC.

Historically, some verticals have proven to be more prone to reversals. As a result, MCCs associated with these verticals are almost universally considered high risk. Examples include:

You may also have to offer high-risk business services because of the method you use to generate sales or leads. Examples of high-risk tactics include:

A Guide To High Risk Merchant Accounts

The privilege of accepting credit cards comes at a price. This is true regardless of which provider you deal with. However, if you need to work with a high-risk business account provider, the price will be higher in many ways.

Service providers specializing in high-risk traders tend to charge higher than average fees and require strict contractual terms. Several service providers specialize in supporting merchants who have been rejected even by other high-risk processors. Of course, the fees and contracts these companies require are often more stringent than conventional merchant processing.

Unfortunately, there are some scammers who target struggling traders. They offer help at ridiculous prices and with firm contracts that will be almost impossible to escape. Before signing a contract with any service provider, be sure to do your research, check reviews, and seek reports from the Better Business Bureau and other advocacy groups. Finally, always read (or better yet, have your lawyer read) the fine print.

Account reserves are the payment processor’s way of hedging your bets. If something goes badly wrong with you, your buyer will be insulated from loss by the account reserve. There are three basic types of reservations:

Interesting Facts You Shouldn’t Miss About High Risk Merchant Account

Many traditional processors may reject a company that has higher yields. Therefore, it may sometimes be necessary to seek high-risk commercial services. Where to start?

You want to look for reputable processors that specialize in high-risk business solutions. But before you choose a payment processor, make sure you read their terms and conditions in the fine print and pay close attention to their fees. Every platform is different. Someone may offer options more tailored to your business than the competition.

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Here are just a few high-risk business account providers to help you start your search off right:

High Risk Merchant Account Fees

Focused primarily on high-risk e-commerce, 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 flexible accounts, 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 customer relationships through superior 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 US and international merchants. The company received high marks for excellent customer service and customized pricing plans.

High Risk Merchant Account Canada

Global Merchant Advisors offers customized processing solutions that allow merchants to focus on growth, not payments. GMA advisors are available to guide merchants through every step of the process.

Host Merchant Services offers both standard processing and special services for high-risk merchants. In addition to gift card and loyalty card programs, the company offers a free website with on-demand email service for new merchants.

HRMA-LLC specializes in high risk business accounts and ACH processing for high risk business verticals. They offer payment processing for virtually all types of high-risk businesses. HRMA-LLC offers fast approvals with no setup fees.

Using a multi-channel platform that adapts to each payment experience, Inovio aims to simplify the confusing payment process. Its flexible APIs, seamless integration and other services work with various payment technologies.

Am I Considered A High Risk Business? High Risk Industries 101

Instabill offers PCI-compliant solutions, including online payment gateways, and global reach. They work with all major credit card schemes and their solution supports international currencies including British Pounds, Euros and more.

PayKings experts can help merchants set up a low- to high-risk merchant account that offers affordable merchant services, online credit card payment processing, and seamless integration with the merchant’s existing platform.

With a reputation for transparent and fair sales practices, Payline Data offers quality customer support along with various merchant-friendly fee structures. Monthly billing and no early cancellation fees are also advantages.

PaymentCloud serves a variety of business types, including high-risk merchants, with a 98% approval rate for new merchants. Pricing is based on business history and the company has no application or account opening fees.

High Risk Merchant Accounts (100+ Payment Gateways)

Soar Payments offers excellent customer service along with a good selection of pre-planned service packages. The company strives to be transparent in its costs, providing simplified “no haggle” pricing.

Billing itself as a “new category service provider”, T1 Payments offers a flexible guarantee, a simple application process, flat fees and expert support, all integrated into a premium solution with a dedicated end-to-end service.

Even with all the drawbacks, some traders prefer – or at least are willing to accept – working with a high-risk trader account. Many verticals present significant earning opportunities if you are willing to accept the increased risk and profit retention that come with them.

There’s another attractive element of high-risk accounts to consider as well: limited withdrawal penalties. Providers are less likely to close high-risk accounts due to excessive chargebacks, which is why many merchants end up seeking high-risk merchant processing. Maintaining a high-risk merchant account can be more expensive, but it’s a reliable way to ensure business viability in the face of increased chargebacks.

What Is A Merchant Account?

However, if you have a high return rate or want to reduce your return rate to avoid higher costs… there is an alternative.

® enables sellers across all MCCs, sales models and product verticals to increase profitability. We help standard merchants avoid excessive chargebacks and help high-risk merchants recover revenue that would otherwise be lost due to fraudulent chargebacks.

Contact us today for a free, no-obligation refund analysis and find out exactly how much you could save.

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