Low Risk Vs High Risk Payment Processing

May 14, 2023

Low Risk Merchant Account

Are you looking for a low risk merchant account for your business? Banks and payment suppliers will assess the risks connected with your company and choose whether they can accept your application for payment processing.

Low Risk Merchant Account

In case that they consider you a high risk merchant, you may be charged a premium. Moreover, they are even able to refuse to open a merchant account for you. It all depends on the amount of the dangers involved with your brand, vertical, and history.


High Risk Vs Low Risk Merchants

What Is A Merchant Account?

Before you’re approved for a merchant account, payment processors will decide if you’re a low risk merchant. They’ll review your business details and find out if there is a reasonable risk associated with your credit card processing. They’ll consider factors like how long you have been in business, what your reputation is, and much more.

Payment processors will tag your company as a high risk merchant if:

  • The industry you are in has a high chargeback ratio
  • You are handling a substantial rate of fraud
  • Your business is newer and doesn’t have a good reputation
  • Your company lacks financial stability
  • You, as a merchant, have poor credit
  • Most of your customers buy months beforehand, and also the product/service is consumed after the fact

Payment processors will categorize your company as low risk when:

  • Your company brings in less than $20,000 per month
  • Your average ticket size is significantly less than $50
  • You have zero to low chargeback ratio
  • The business is in a low risk industry
  • You are incorporated in a low risk state

Open a High Risk Merchant Account with PayKings

If you qualify for a high risk merchant account, expect to pay slightly higher fees. The reason for this is because banks use more resources, and face higher risk when onboarding unique businesses.

But with a knowledgeable and respectable payment processor like PayKings, high risk retailers can enjoy the lowest possible rates and the best terms for high risk merchant accounts and credit card processing in the industry.

PayKings talks to each and every business owner and gets to know how to cater to their specific  business needs. Even if you’re high risk, you will find steps you can take to Reduce your risk:

  • Reduce your risk of chargebacks with strong fraud prevention tactics
  • Focus on generating stable streams of earnings and Prevent occasional streams of big earnings
  • Demonstrate you’re able to keep up with high trading volumes

As a high risk merchant account provider, PayKings guarantees safe credit card processing for eCommerce companies and brick and mortar retailers globally. If your business is exactly what conventional processors and banks classify as needing a high risk merchant account, turn to PayKings for quick and safe credit card payment processing.

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May 14, 2023 | High Risk Merchant Account | Guest Post