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High risk merchants shouldn’t get surprised when faced with challenges while setting up a merchant account. Being labeled as high risk leads to serious strains when trying to get approval for merchant processing services. This article provides details concerning high risk merchant accounts and their approval.
High Risk Merchant Accounts: Who Can Help?
Let’s start with the high risk label. So, a merchant is tabbed as high risk if he/she owns a business that’s associated with higher rates of fraud and chargebacks. These include adult businesses, gambling, auction, telemarketers, and web-hosting services, marijuana or CBD-related businesses, and others. Specifically, your business can be tabbed as high risk, if it:
- Has poor credit history
- Is associated with multi-currency deals
- Is a new business with no experience in online transaction processing
- Is in a risky industry
- Processes international transactions
- Deals with higher rates of fraud
- Is associated with high chargebacks
- Deals with high-value transactions
If you find it intimidating to get approved for high risk merchant services, you’re wrong. Just find a trustworthy payments specialist specializing in providing high risk merchant accounts to work with. With the right high risk merchant account expert, you can have no difficulty getting approved for high risk credit card processing services. Make sure the offered rates are among the cheapest.
What to Pay Attention to When Applying
Before applying for a high risk merchant account, remember that traditional financial institutions prefer working with low risk businesses as they want to be sure merchants can pay back the debt. The same is true of banks: they want to stay away from higher risks of failure and the selling of questionable products/services.
When turning to a high risk processor, make sure to avoid:
- Hard-to-believe cheap rates
- Processors unable to solve the problems associated with your type of business
- Unreliable POS system and credit card terminals, unsecure payment gateways, unreliable mobile payment solutions, as well as poor integrations
- Long-term contracts
- ● Poor chargeback mitigation and fraud prevention techniques
So, think of a high risk merchant account as a type of bank account meant for high risk businesses. If you’re a high risk merchant, setting up the best possible high risk merchant account is critical to the success of your company.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated high risk merchant account processor in the country offering the most secure and cheapest high risk merchant accounts in the space. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.