Your company has been categorised as having a more significant potential for fraud or chargebacks. As a result, your payment processor has recommended that you open a high-risk merchant account. The increased processing costs that high-risk merchant accounts are required to pay are a kind of compensation for the risk that the payment processor is taking on.
This article will discuss what is meant by a High-risk Merchant Account as well as how to get a High-risk Merchant account for your company.
What do you mean by a High-risk Merchant Account?
When someone refers to your company as a high–risk merchant, they indicate that it has a greater transaction rate than the typical firm. It suggests that the high-risk merchant highriskpay.com views you as having a greater likelihood of becoming a victim of fraud. A high-risk merchant account from a high-risk merchant like highriskpay.com may assist in lowering the expenses associated with chargebacks, fraudulent charges, and any other fees to which the merchant may be subject.
There is a greater likelihood that these accounts may be denied, particularly for online companies. Since an owner of an internet company does not have a physical storefront, it is more difficult for financial institutions and other organisations involved in transactions to trust them.
High-risk merchant accounts on highriskpay.com are available so that companies may acquire the additional assistance necessary to safeguard themselves against dishonest customers who purchase online.
How Do I Get a High-Risk Merchant Account?
When you register for a merchant account, you will be asked to supply documentation about your company and your taxes. Your payment service provider will determine if you are a high-risk or low-risk merchant after they have finished processing your application, and they will adjust their plan appropriately.
It is recommended that you research the many service providers available to choose the one that best meets your company’s requirements. Specific payment processors are better suited for high-risk customers. For your convenience, Forbes Advisor has compiled a ranking of some of the most reputable high-risk merchant account providers.
When deciding on a payment processor, you should thoroughly read the contract. Because each bank and payment processing platform is unique, they each have their own set of rules for the merchants they categorise as high-risk.
Instant Approval For High-Risk Merchant Accounts
The underwriting procedure for high-risk enterprises may take a few more days than expected, particularly in highly regulated fields of industry. Be assured, however, that our staff will make as much effort as necessary to accept your application swiftly. High-Risk Pay’s approval procedure typically takes between 24 and 48 hours, making it far quicker than the approval processes for most other high-risk merchant accounts.
Your business’s successful operation is our first concern, and we will spare no effort to activate and activate your merchant account as swiftly as humanly feasible. A 99% acceptance rate indicates that it will accept your particular company, and you can start taking payments quickly and uncomplicatedly.
What are High-risk payment processors?
Payment service providers specialising in processing transactions for merchants operating in industries with a high risk of fraud or chargebacks are known as high-risk payment processors. Some examples of industries that fall into this category include adult entertainment, online gaming, and debt relief.
Because of the higher likelihood of fraudulent activity and chargebacks connected with the merchants’ business models, conventional banks and payment processors often refuse to provide these business merchant accounts. High-risk payment processors often provide a greater variety of services to merchants to assist them in mitigating the risks connected with their company.
These services may include fraud prevention, chargeback management, and support for several currencies. They also have an enormous tolerance for risk. They are more flexible with their underwriting standards, which makes it simpler for high-risk businesses to get a merchant account and begin processing payments.
Compared to regular payment processors, high-risk payment processors often have more rigorous contract requirements and demand more outstanding fees than standard payment processors. It is because they are subjecting themselves to greater risk by processing payments for high-risk merchants.
It is essential for merchants to carefully assess the terms and circumstances of the contract they have with a high-risk payment processor and to do in-depth research on the reputation and track record of the processor and It will help guarantee that the merchant cooperates with a reliable service provider to assist them in risk management and ensure that their payment processing continues smoothly.
Reasons You May consider a Merchant High-Risk
Several factors go into determining whether or not a payment processing platform would label you as high-risk. While some of these factors may seem self-explanatory, others are more subtle. Every service provider has its own unique set of requirements for high-risk merchant accounts, but in general, the following are the types of businesses that are likely to be considered high-risk:
● High transaction volume.
If a merchant has many transactions or a high average transaction rate, their financial institution could label them as high-risk. If a merchant handles more than $20,000 in payments monthly or has at least $500 on average transactions, they risk being labelled as a high-risk business.
● Acceptance of international payments.
Suppose a retailer offers its products to clients in foreign nations with a high rate of fraudulent activity. In that case, the retailer might be classified as high-risk (any country except the U.S., Canada, Japan, Australia or European countries).
● New merchant.
Since they do not have a track record, a merchant that has never accepted payments before or has a modest history of processing transactions may be regarded as high risk solely because they need a track record.
● High-risk industry.
Even if a merchant has a perfect track record, they might still be classified as high-risk simply because the business sector in which they operate is associated with a greater likelihood of fraudulent activity, chargebacks, or refunds.
For instance, subscription-based businesses are considered high risk since many customers join up for a trial but fail to discontinue their payments after the trial period ends. They often dispute the charge after reviewing their bills and discovering expenses that they had previously overlooked.
● Low credit score.
The company may be considered high-risk if they have a poor credit score.
High-risk merchant account highriskpay.com’s goal is to become the provider of choice for companies located anywhere in the United States by delivering only the finest and most innovative services in our industry. You will save time and money while improving the security of your payment management.