High Risk Credit Card Processing Tips

March 15, 2023

Finding the best high risk credit card processing company is an important task for any qualified ecommerce business. Whether your business sells nutraceutical supplements, CBD oils, or coins & collectibles, your processor is essential for keeping your business running smoothly.

What some companies may not know is that monthly earnings are important in determining your credit card processing opportunities and costs. Businesses with yearly sales revenue less than $1.2 million annually may pay higher premiums for processing capabilities.

Understanding the world of online payments can be somewhat intimidating at first. Nonetheless, a little information can go a long way. Small businesses that want to secure high risk credit card processing and should find sustainable custom solutions.

High Risk Merchant Account: Payment Processing Overview

For payment processors, a company that applies for an account usually has less than $100,000 in earnings. The more earnings you have the easier it is to underwrite your account. Therefore, acquiring a trusted and reputable credit payment processor is vital to the success of any startup. In any case, the main reason you may be considered high risk is due to industry associations. A high risk account is required for such businesses as multi-level entrepreneurs (MLM), online nutraceutical companies, and debt collectors.

These tips can help you secure a custom solution perfect for your company.

Prove Substantial Capitalization

Proving that you have established a history of sales helps. Alternatively, 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. It also hedges risk with issues such as fulfillment and product sourcing.

When seeking high risk merchant account payment processing solutions, businesses without money in the bank are at a particular disadvantage. Despite showing six figures in monthly revenue, some banks and underwriters will deny account applications for certain businesses. This may be for regulatory reasons such as selling illegal products. Or perhaps a business has high levels of chargebacks or was MATCH listed.

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. Seeing how you’ve processed previously removes a great deal of the mystery for the payment processing company and sponsor bank. Moreover, it allows them to begin underwriting for your business.

Companies dropped by a low risk payment processor can be hesitant to share their past processing statements. However, businesses that are currently shifting from a low risk category to high risk, should not be concerned with providing these essential documents.

High risk merchant account providers have a greater threshold for approving terminated accounts. For example, if Square dropped your account, you’ll need high risk solution. In reality, the processing history that led to your account termination is better than stating that the business is a startup.

Shop Around for High Risk Credit Card Processors

For companies with online businesses, shopping around for credit card processing provider is crucial. Most readily available companies like PayPal, Square, and Stripe will decline businesses in certain verticals or with high ticket sales.

Therefore, if your organization qualifies as needing a high risk merchant account, your options will be limited. So you are going to have to shop around to find a particular payment processor experienced enough to underwrite your business.

Choosing the Best Payments Processors

Selecting the best payment processors providers is no easy task. The top ones are mindful of their relationships with banks. The more stable their banking relationships, the easier maintaining payment processing will likely be.

Choose a payment processor that concentrates on high risk businesses. Experience is key. Processors work with underwriting teams who organize and submit documents for your account. In addition, some companies have well-established partnerships. And, niche industries have specific technology needs or branding requirements. The best payment processors 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. They 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, provide alternatives to help limit risk, fraud, and chargebacks. In fact, we can get you pre-approved in as little as 6 hours. Moreover, our team works with you each step of the way to guide you through the process.

Our team of experts says yes to virtually any business type, business model, and even those restricted product types – all through a 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.