What is a High-Risk Merchant Account?


Most small business owners will never hear the word “high-risk merchant account” until their businesses have been recognized as such. It can seem a lttle bit mysterious initially. In some cases, it may feel like an unfair judgment against your business, the service you provide, the merchandise you offer, or you yourself. That isn’t the truth. From the perspective of the merchant provider, it is often an indication that your business poses a greater risk for chargebacks and has nothing in connection with what your business did or how they have performed.

What makes Some Businesses Thought as HIGH RISK MERCHANT ACCOUNTS?
Understanding this critical designation gives you the keys to the universe as it pertains to focusing on how merchant services work and identifying the best payment processing partners to work with your business. Unfortunately, there is no person industry-wide standard that identifies one business as risky while absolving others of this designation. It is incredibly subjective, plus some factors simply make your business a far more likely target because of this designation including the following:

You work from home – The positioning of your business matters and home-based companies are riskier propositions for payment processors. For this matter, conducting business from the country can also designate you as a higher risk merchant account, so keep that in mind before you intend to dominate the universe.
The length of time you’ve been in business – The longer you’ve experienced business, a lot more willing partnerships you’ll have available to you.
Your history with other merchant accounts – It matters. Keep the records and become honest when doing your research for new merchant partnerships.
Amount of chargebacks- There isn’t enough to be said relating to this. Avoid them whenever you can. Create policies to mediate customer problems, offer refunds, and talk to your visitors to prevent them.
You’re in another of the recognized high-risk industries – Some industries are just riskier than others from a payment processing partnership perspective.
Your personal credit – Contrary to popular belief, this has a larger impact than many companies realize. Improving your credit makes you look like a far more favorable risk for business partners to assume.
Of course, there could be reasons not included upon this list that identify your business as a higher risk merchant account. If you have any questions about if you qualify as a high-risk merchant, reach out to a merchant services provider for an appointment.

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What sort of High-Risk Merchant Account Impacts YOUR ORGANIZATION
Occasionally, being designated as a higher risk merchant account means you’ll have to undergo extra scrutiny to be able to receive merchant services. You may be limited by a certain range of transactions in per month or be asked to have a certain amount of cash reserves.

Generally, you’ll be required to pay higher fees and/or processing rates to get a number of merchant services due to your risky designation. Some providers could even do not work with you.
Great things about Having a higher Risk Merchant Account
You might be surprised to discover that there are several benefits to being discovered as a high-risk merchant if you’re willing to pay the excess fees and feel the added scrutiny and oversight high risk merchant members face. Among those benefits will be the following:

More flexible payment acceptance options – Low-risk merchants can only just gather certain types of earnings by charge card. High-risks merchants have fewer limitations, meaning they can:

Offer recurring payments
Process higher sales volumes for launch events and special sales
Sell a wider variance of products and services
Capability to work internationally – Low-risk merchants are limited and severely restricted as it pertains to international transactions. High risk merchant accounts have fewer restrictions that may limit their goals for global expansion.

The key is to choose wisely when selecting high-risk credit-based card processing partners and merchant services providers. BankCard services has cultivated a reputation for specializing in high-risk merchant services, not forgetting a willingness to utilize a variety of businesses to supply the payment processing services, equipment, and even more that your business needs on a month-to-month basis without long-term contracts. E mail us today to learn more about how exactly we can help your business thrive.

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