A high-risk merchant account is a payment processing service offered to business enterprises engaged in activities that banks or payment processors consider high-risk. These accounts are designed for industries with more risk of chargebacks, fraud, or regulatory issues.
Basic Benefits
Allows businesses to process credit card transactions.
Provides safety measures against credit card fraud for better secure transactions.
It has better chargeback protection compared to regular accounts.
What is a High-Risk Merchant Account?
A high-risk merchant account is a service that Payment Service Providers (PSPs) offer so that entities in fraud or chargeback-prone industries can accept card payments. High-risk merchant accounts attract more stringent conditionalities than regular merchant accounts and are more expensive to manage.
Per standard industry practice, payment service providers categorize businesses seeking to open new merchant accounts according to risk exposure. Depending on the perceived risk your business operations present to them, you can be classified as either a high-risk or low-risk merchant.
Sometimes, you could start operating as a low-risk merchant. But if your company becomes exposed to increased fraud and chargeback rates, you could quickly move into a high-risk merchant account category.
As noted earlier, high-risk merchants have fewer options when choosing a payment processor. Additionally, they often pay higher fees to compensate for the perceived risks and abide by more stringent contracts.
While operating a high-risk merchant account is no fun, it could be your only way to continue accepting card payments in certain instances. We’ll discuss how that plays out shortly.
How Are Businesses Classified as High-Risk?
Payment processors use several factors to determine high-risk merchant accounts. And chief among those indicators is high transaction amounts, the benchmark being $20,000 or more per month, average transaction amounts of over $500, or chargeback rates.
To help you understand why your business may be labeled «high-risk,” let’s examine the standard contributing factors.
Any business that ticks yes to any of the factors below could fall into a high-risk business category.
- Is your monthly sales volume $20,000 or more?
- Do you accept multiple currencies?
- Is your average credit card transaction $500 or more?
- Do you offer recurring billing or subscription payments?
- Do you have a history of high chargeback volumes?
- Does your business sell intangible products like software solutions, digital goods, seasonal items, tickets, etc?
- Do you operate in chargeback-prone regions, i.e., outside the US, EU, CA, JPN, or AU?
- Do you have a bad credit history?
The red flag of being labeled as a high-risk merchant doesn’t automatically make your company less trustworthy than other entities. Instead, that categorization is a subjective expression of your PSP’s concern with the likelihood of disputes your business may face rather than its overall value.
Why Choose a High-Risk Payment Processing Account from highriskpay.com?
1- High-Risk Industry Specific Solutions
Being in charge of generalized high-risk merchant account processes for industries including medicines, e-commerce and tech support. Modified solutions to satisfy distinctive business structures.
2- Safe Payment Processing
Firms billings in safety re-issuing change loans even in unsafe environments. Unfluctuating network connectivity ensures safe credit card transactions without any interruption.
3- International Presence
Get payments from all the customers and foreign currency for reaching business transacting internationally.
4- Fast Approval
Fast completion of the process to welcome new clients in the business unlike in commercial banks. Approval takes 24- 48 hours depending on the business in most cases.
5- Round-the-clock Availability
Active availability of assistance to resolve related issues of either technical nature or payment ones.
Main Features that Distinguish Highriskpay.com
Free from Additional Costs
All rates are clear from the beginning and there are no extra payment charges afterwards.
Various Payout Methods
This enables scheduled billing, phone, internet payment and payment systems in shops.
Tools for Management of Chargebacks
Timely alerts to control and mitigate conflicts. Proactive measures are in place to ensure a low chargeback ratio.
Flawless Addition
Integration is made seamless with established e-commerce systems. APIs are simple and easy to understand and coded for easy user engagement.
Customer support and service
The primary thing, the business should do is assess the customer support and services offered by the merchant service provider. The reason for setting would be to solve problems that are technical or those that are otherwise through the support of a good service provider.
Reputation and reviews
A business will check on the reputation of the merchant service provider and reviews from other customers if it plans to select a merchant service provided. In return, this allows ways to get more ideas easily that will help proceed further.
Integration and compatibility
Before selecting any particular service, an account will have to be checked if it is possible to integrate it into business operations as such conditions remain as one aspect. Compatibility remains there for others because using a provider who is a part of many platforms and software will smoothen the place.
How to Start with a High-Risk Merchant Account at Highriskpay.com?
Reach out to Highriskpay.com: Go to their webpage and complete the application form.
Business Details Submission: Disclose your business details, the type of industry you are in along transaction volumes.
Application Evaluation: Evaluation and risk assessment of your business will be done by the specialists in their company.
The Approval Par and the Onboarding Process: After approval is granted, you will be instructed on how he or she can set up a merchant account.
Begin to Accept Payments: Begin the secure and orderly processing of payment transactions.
How to Choose the Right High-Risk Payment Processor
Always look for a high-risk merchant account payment processor that aligns with your business model. These entities must provide the support and services you need to facilitate secure and efficient payment processing.
Below are vital factors to look for in a high-risk merchant account service provider:
#1: Experience with High-Risk Industries
Ensure that the payment processor has experience working with businesses in high-risk verticals. They must deeply understand your industry’s specific challenges and compliance requirements.
#2: Risk Management and Fraud Prevention
Look for a payment processor with robust risk management tools and fraud prevention measures. Look for features like real-time transaction monitoring, chargeback mitigation services, address verification systems, and 3D secure authentication.
#3: Multiple Payment Options
Remaining competitive in today’s global marketplace requires that your payment processor supports various payment options. With that, you can quickly accommodate diverse customer preferences like cards, e-wallets, ACH payments, and alternative payment methods.
#4: Competitive Fee Structure
Look at the fine print and understand the payment processor’s pricing model and fee structure. As noted earlier, high-risk businesses generally incur higher processing fees due to increased risk factors. Compare rates and fees across different providers to ensure you are getting a competitive deal.
#5: KYC & Regulatory Compliance
High-risk industries often have specific compliance requirements, such as age verification for tobacco or alcohol sales or Know Your Customer regulations. Choose a payment processor that understands and can assist you in meeting these compliance obligations seamlessly.
#6: Excellent Customer Support
Look for a payment processor that offers reliable customer support. They should be responsive and knowledgeable in addressing technical issues, providing assistance with integration, and resolving payment-related inquiries or concerns.
#7: Scalability and Growth Prospects
Every business can grow. So, look for a payment processor to support your business’s growth prospects. They should be able to handle high transaction volumes and provide additional services or features as your business expands.
#8: Reputation and Reviews
Do thorough research on the payment processor’s reputation in the industry. Look for reviews and testimonials from other high-risk merchants to gauge their experiences and satisfaction levels.
#9: Integration and Compatibility
Ensure the payment processor integrates smoothly with your existing infrastructure or point-of-sale system. Compatibility and ease of integration can save time and effort during the setup process.
Industries Served by High-Risk Merchant Account at highriskpay.com
1. E-Commerce
Payment gateways and varied options for the online shops and stores.
2. Tech Support
Assists in handling the payment processing of businesses with an extreme amount of traffic.
3. Subscription Services
Assists with recurring billing about subscription services.
4. Travel and Hospitality
Ability to process high-value transactions and manage seasonal changes within the industry.
Conclusion
If your business is considered high-risk, managing payments can be a real challenge. That’s where HighRiskPay.com steps in to help. They offer tailored solutions to meet the unique needs of businesses in risky industries, making payment processing smooth and secure.
With HighRiskPay.com, you get safe payment options, personalized support, and tools to help your business grow. Whether you run an online store, a subscription service, or another high-risk venture, they provide the flexibility, security, and speed you need to succeed.
Ready to take your business to the next level? Visit HighRiskPay.com today and get started!