What are High Risk Merchant Accounts and High Risk Merchant Services?
- A merchant account for high risk business is similar to a bank account for business owners considered to be high risk.
- High risk payment processing requires a high risk merchant account.
- Factors from credit score to industry type can categorize your business as high risk.
- Your high risk merchant account allows consumers to purchase online.
- Applying is easy; click to get started.
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What Makes a Merchant in Need of a High Risk Merchant Account?
What are the Most Common Reasons a Business might Need High Risk Merchant Accounts?
01. The business is selling products online:
A high risk eCommerce merchant account is a type of service commonly referred to as Card-Not-Present merchants.
02. The business is in a highly regulated industry:
Such businesses involved with selling tobacco or e-cigs, firearms, and alcohol are among a few of the many that would fall in this category.
03. The business is in an industry that a bank may see as a reputational risk:
Companies that deal with information technology that might risk stolen customer information could be considered a reputational risk, as are those in any adult industry.
04. The business industry is known for having a high instance of chargebacks or fraud:
Merchant accounts that fall in this arena often experience increased chargebacks, identity theft, account takeover, and more; convincing banks to run in the other direction.
05. The business sells products or services on a continuity or recurring billing model:
This type of business model brings a lot of chargebacks when clients are billed without consent or remembering they even signed up; too many chargebacks will lead to your account shutting down entirely.
06. The person signing on the merchant account has bad credit:
This one is a no-brainer. Banks are less willing to lend funds to those with bad credit which is when a high-risk processing company comes in handy.
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How to Get Approved for a Merchant Account for High Risk Business
Other things to consider about needing a High Risk Merchant Account include the ratio of chargebacks that your company incurs.
What is a Chargeback?
Chargebacks are also known as credit card charge reversals. A chargeback is an alternative for customers to receive their money back in the case that they find fraudulent transactions on their credit card statements and is particularly common for businesses with high risk merchant accounts. Banks have a special interest (because of their particular commission) in pursuing chargeback claims. So, many dishonest customers misuse this procedure, which causes a growing number of unwarranted chargebacks. The more high risk merchant account chargeback claims you have against you, the more that payment processing providing companies will avoid your business altogether. Therefore, it’s no surprise that retailers with high risk merchant accounts are currently going above and beyond to stop chargebacks as much as possible. The demand for businesses to take measures to protect against chargebacks is becoming more and more prominent every year. All retailers with high risk merchant accounts need to learn how chargeback claims can be handled and how to seek high risk merchant services to protect their businesses from fraudulent chargebacks.
How do Chargebacks play a role for your High Risk Merchant Account?
High Risk Merchant Accounts and Payment Gateway Solutions
The PayKings team has high risk merchant accounts for businesses with high risk payment processing volumes of $20,000-$100,000,000+ per month. Our gateway and other high risk merchant services give you access to information regarding your merchant account for high risk business, including individual transactions and batch totals with comprehensive reporting tools. Merchant Payments Acceptance Corp’s end-to-end solution offers flexible products and high risk merchant account services that enable merchants to accept nearly all types of electronic payments including major credit cards: MasterCard®, VISA®, American Express®, Discover®, Diners Club International®, signature debit cards Gift and loyalty cards, and even for a high risk ACH merchant account.