6 Facts About Services Everyone Thinks Are True
How High Risk Merchant Accounts Work
In the sphere or processing we have ideals and there are businesses that do not as much comply with these ideals to be considered as problematic or risky. Medicinal marijuana companies, subscription-based companies, or adult entertainment companies are some examples of businesses than can be considered as high risk. Is you business a high risk one? Have you been turned down by a credit card processor for being a high risk merchant?
Fret not since there are plenty of high risk merchant account providers that specialize in exactly what you need. Your business will be helped out by these providers.
You need to understand that not all providers will consider your business as high risk. In this case, it is purely a subjective issue that has to do with risk department underwriting guidelines. If the guidelines are strict, then you won’t get approved. If the guidelines are relaxed, then you will have yourself a merchant account.
Providers for high risk businesses given these merchants higher rates because of the risks but they provide them with good services. Maybe your industry is known for having a high instance of chargebacks or fraud or perhaps you have a bad credit. Are you an offshore business? Are the things you are selling in the borderline of not being legal? And, are your sales and marketing tactics questionable?
As I mentioned above, there are more providers who are risk averse than others, they don’t want to deal with any business that may pose a bigger threat of losing them money, so they avoid those business types and types of people 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.
Though the rate and fees are high, it is still obviously beneficial to your business because with a merchant account, your business ability to accept debit and credit card payment safely and conveniently is still there. And this is important because this world no longer runs on cash but on plastic. And denying your business with the ability to securely complete credit card transaction could greatly hinder your potential for profit.
To most high risk providers they also have staff who works just as hard with you as with any other business to ensure that things go smoothly. They also are willing to set up the ideal high risk merchant account for you and will even set up multiple accounts when necessary. With multiple accounts, the risk involved is spread with their transactions over multiple networks.