All You Need To Know About High Risk Merchant Account
If you’re a high risk merchant, you know that finding a quality merchant account can be difficult. You may have been turned down by traditional banks or processors due to your industry type or credit history. Fortunately, there are plenty of options available for high risk businesses. In this guide, we’ll provide an overview of high risk merchant account services and how to find the right provider for your business.
What is a High Risk Merchant Account?
A high risk merchant account is a type of account that allows businesses in high risk industries to process credit and debit card payments. These accounts are typically more expensive than traditional merchant accounts, but they offer businesses the ability to accept card payments without being denied due to their industry type.
There are a number of factors that can make a business high risk, including:
- having a history of chargebacks or fraud
- being in an industry with a high rate of chargebacks (such as travel or adult entertainment)
- having poor credit
- processing large amounts of money
If you fall into any of these categories, you may have difficulty finding a merchant account with a traditional bank or processor. That’s where high risk merchant account providers come in.
High Risk Merchant Account Providers
There are a number of merchant account providers that specialise in high risk businesses. These providers understand the unique challenges that high risk businesses face and can offer merchant accounts with higher limits and more flexible terms.
When choosing a high risk merchant account provider, it’s important to compare a few different options. Some things to look for include:
- Interchange-plus pricing: This is the most transparent and fair pricing model for processing credit card payments. With interchange-plus pricing, you’ll know exactly how much you’re paying for each transaction, with no hidden fees.
- A dedicated account manager: When you sign up for a merchant account, you should be assigned a dedicated account manager. This person will be your point of contact at the processor and can help you with any questions or issues that come up.
- Flexible terms: Look for a provider that offers flexible terms and doesn’t require a long-term contract. This will give you the flexibility to switch providers if you’re not happy with the service you’re getting.
- Fast approval: You don’t want to be stuck waiting weeks or even months for your merchant account to be approved. Look for a provider that can approve your account quickly so you can start processing payments right away.
How to Find the Right High Risk Merchant Account Provider
There are a few things to keep in mind when you’re looking for a high risk merchant account provider. First, make sure you understand your business’s needs. What type of transactions will you be processing? How much money do you expect to process each month? What’s your chargeback history?
Answering these questions will help you narrow down your options and find a provider that can offer the right solution for your business.
Next, compare pricing and fees. As we mentioned earlier, interchange-plus pricing is the most transparent and fair pricing model for processing credit card payments. Make sure you understand exactly how much you’ll be paying for each transaction before you sign up for an account.
Finally, take the time to read reviews from other businesses in your industry. This can give you a good idea of what to expect from different providers and help you find a provider that’s a good fit for your business.
The Bottom Line
A high risk merchant account can be a great solution for businesses in high risk industries. These accounts offer more flexible terms and higher limits than traditional merchant accounts, making them ideal for businesses that process large amounts of money or have a history of chargebacks or fraud.
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