Did your business get labeled as high-risk by your payment processors? Don’t worry! A high-risk merchant account is here for you! Paying higher processing fees is the ability of a high-risk merchant account just to compensate for the risk factors involved. If you go through this blog, it will tell you how come your business is high-risk and how to pull it out of those issues.
What is a High-Risk Merchant Account?
Getting chargeback, many frauds, and a higher volume of refunds makes you one of the high-risk merchants. Most of the time, it could be the reason, just because you’re a newcomer who hasn’t been in the market before and never processed any payments.
Sometimes in which industry you’re working is considered as high-risk. And online frauds can be the reason too. High-risk merchant account is capable of working in this industry too.
Can you control higher transaction issues?
Several companies in the market accept credit card payments as payments for the products consumer wants. Processing fees differentiate from company to company and products to industries. So, you can assume that the processing fees which are charged upon merchants in low-risk businesses can be high in high-risk businesses.
Although even low-risk merchants pay chargeback too, it’s slightly a little bit higher than the low-risk businesses. As a high-risk merchant, many times, the payment processor holds a certain amount from your income. Just in case those transactions get suspicious for fraudulent payments. So, there are many restrictions, and you need to overcome them.
High-risk businesses also generate higher revenue and turnover than any low-risk business. Bigger the risk, the bigger the profits. Just because of these situations, merchants get into trouble and don’t even get help from local banks, which hinders their growth.
Transaction volume is off-limits.
Although not every business gets transactions in a large volume, for some, that’s just the daily outrun. And these can be one of the reasons for calling someone’s business high-risk. Monthly turnover, which crosses $20,000 and every other transaction hitting $500, can be part of these listings.
· Offshore payments
It’s not that any business can’t accept offshore payments. But offshore payments attract too much risk. Selling into countries under the label of high-risk can cause online frauds, which is obvious to us, you or anyone globally.
Take it simple! Not everyone is running an online business, so there can be chances that you can run into someone who can’t show their track records. And as a fresher, getting such services from local banks isn’t easy, and not completely impossible.
Records not mentioning any crime, bad history, or involvement in any filthy work can’t save you from the suspicion. You can still get the label of a high-risk merchant as the industry you’re dealing in is one of them.
High-volume transactions, a large number of the chargeback, and reputation risks will provide you with the tag. Ex- running an adult toys business, and one of your consumer’s kids opened up the site and unknowingly made the payment.
They’ll still get back at you and claim a chargeback for the reason that the payment wasn’t made by the real cardholder. How would you feel?
Businesses come under the category of high-risk
Not every single business is considered high-risk. But before the time you put your money in and run the process, you should check whether you’re one of them or not. There are some business sectors listed. If they belong to yours, then congrats, you’ve won it!
- Forex trading
- Nicotine business
- Tours, and travels, online booking
- Electronic items and flagships.
- Online casinos and gambling platforms
- Dating pro apps and matchmaking sites
- Escort services, with adult entertainment
- eCommerce websites
- Multi-national companies.
- e-Cigarettes, vapes, and Cannibal products
- Subscription and ACH services based businesses
- Online gaming websites (paid)
Low-risk companies are judged according to some factors. And these factors are:-
- Transaction volume lower than the volume of $20000/monthly.
- The normal transact limit should be under $500
- Not intervening in any high-risk labeled country.
- Single transaction mode.
- The chargeback percentage should be low or lower than 0, and the monthly returns should be low too.
Development of business can change your tag along with the expansion and growth of your business. A sudden growth in the business can change the area of your business, and this can make a change into your tag of low-risks.
Shifting the industry into a completely different from your previous one in such a short time can also make you a high–risk businessman. In both conditions, the favor from the payment processors will reduce. And the chances of getting the termination from the contract can arrive. At that moment, other than finding a new partner would be the one and final option for you.
How to apply for a high-risk merchant account and get faster approval?
Business and tax files will explain your business thoroughly, so they’re mandatory. After that, processed application, PSP will decide whether to treat as one of the low-risk merchants or put you on the list of high-risk. Gradually they’ll make a plan for you.
List of things needed for these services
- Copy of business license
- Certified if incumbency
- KYC and KBC
- Address proof of the merchant and utility bill
- Previous three months processing history
Businesses run in different sectors need an expert to handle their outcomes at payment processing. So, you need to find a reputable and relatable PSP for your business. Here, we want to introduce you to one of the leading brands for providing merchant services.
eMerchantPro serves everyone!
From low-high-risk businesses, everyone came to eMerchantPro for merchant solutions. And as our nature, we provided them with the best ever services they could get. Getting a high-risk merchant account and a high-risk payment gateway in fine rates can change their businesses.
And we’re glad to become the reason for their trust. To get this high-risk merchant account, follow us through the email, and get your expert solutions, now!