Credit Card Processing Tips for your High Risk Merchant Account
February 25, 2019 | Financial Problems | Jessyka Lee
Like so many things in life, size matters for small businesses, especially those with high risk merchant accounts. Whether your business sells nutraceutical supplements or collects consumer debt, monthly earnings is important in determining accessibility for high risk merchant account payment processing.
Businesses with payment processing revenue lower than $1.2 million annually will find specific problems acquiring a high risk merchant account with a reputable payment processor because most providers are focused more exclusively on bigger businesses.
While understanding the world of high risk merchant payment processing can be both confusing and somewhat intimidating, a little information can go a long way to help small businesses secure a high risk merchant account and stay in good standing with a payments processing provider.
High Risk Merchant Account: Payment Processing Overview
For payment processors, a company that applies usually has less than $100,000 in earnings. This is not an official number, but one that is often used to target customers. That said, acquiring a trusted and reputable credit payment processor is vital to the success of any high risk merchant and business owner; a high risk merchant account would be required for such businesses as multi level entrepreneurs (MLM), online nutraceutical companies, and debt collectors.
These tips can help you secure a payment processing provider that will help your high risk business succeed.
Prove Substantial Capitalization
One of the best ways to secure a payment processing provider, even for a high risk merchant, is being well-capitalized. With substantial capital funds, banks and underwriters are inclined to provide you with payment processing services. For a business, substantial available funding signals that your operations will be financed and some other issues regarding fulfillment or payment processing could be addressed in a timely manner.
When seeking high risk merchant account payment processing solutions, businesses without money in the bank are at a particular disadvantage. Despite almost six figures in monthly revenue, many banks and underwriters will deny most high risk merchant account applications for said businesses; this includes businesses such as online gaming, online dating services, and pawn shops.
Past Processing History
For businesses that don’t have capital resources at their disposal, processing history is another option for procuring a credit card payment processing provider. The reason for this is that being able to see how you’ve processed previously removes a great deal of the mystery for the payment processing company and sponsor bank, which allows them get more comfortable with underwriting for your business.
Companies that were dropped by a prior low risk payment processor can be hesitant to share their past processing statements. Businesses that are currently shifting from a low risk category to needing a high risk merchant account provider should not be concerned with sharing processing statements.
Businesses that provide processing to high risk merchants tend to be comfortable with previously terminated agreements with payment processors. Sometimes, in reality, the processing history that led to a high risk merchant account being terminated is better than stating that the business is a startup.
Shop Around for High Risk Merchant Account Payment Processors
For companies in high risk businesses, shopping around for a high risk merchant account payment processing provider is crucial. Most readily available payment processors (like those at your local bank) frequently deny business in high risk industries.
Therefore, if your organization qualifies as needing a high risk merchant account, your options will be limited, and so you are going to have to shop around to find a particular high risk merchant account payment processor experienced enough to underwrite your business.
Choosing the Best High Risk Merchant Account Payments Processors
High risk merchant account providers have to be mindful of their relationships with payment processors. The more stable their processing background, the easier maintaining payment processing will likely be.
Choosing a payment processor that concentrates on high risk clients can help these businesses develop a reputation that makes securing more volume simpler in the future. Niche focused high risk merchant account payment processing providers may supply services to help mitigate risk of fraud, chargebacks, and other nuisances.
The Leader in High Risk Merchant Account Processing
PayKings is the industry leader in high risk merchant account payment processing. The company works with high risk merchants that range from companies that bring in millions of dollars each month, to startups that are brand new.
Payment processors that concentrate on high risk retailers, such as PayKings, provide alternatives to help limit risk, fraud, and chargebacks. In fact, we can get you pre-approved in as little as 6 hours for difficult to obtain high risk merchant accounts.
Our team of experts say yes to virtually any business type, business model, and even those restricted product types – all through PayKings high risk payment gateway and direct network of 20+ banks and PSP’s.
See how quick and easy it really is to get approved today by filling out our QuikQuote™ form.
February 25, 2019 | Financial Problems | Jessyka Lee