Many merchants are unsure of whether American Express is the right card network to explore for catering U.S. and Canadian buyers. Some prefer other options because of pricing. Others don’t know if it’s a good option for a high-risk business. To find out more about AMEX for high risk payment processing and discover an exceptionally high risk processor, go through the article below.
AMEX Payment Processing: High-Risk Business
American Express was founded in 1850. Since then, the payments giant has undergone significant changes. The American Express Card is the top credit card in 23 countries, such as the U.S. and U.K. However, AMEX doesn’t use an open network as it’s the case with MasterCard and Visa.
The AmEx limit on high risk credit card transactions puts higher control on the amount that merchants must pay to accept cards. So, merchants have 2 options to get AMEX payment processing for business. First, you can go through a merchant service or payment provider with the OptBlue program. Second, you can go directly through the AMEX card network.
In general, high-risk businesses are required to pay higher rates and take additional terms when applying for credit card processing services. The good news is that there are respectable high risk processors like eMerchantBroker.com that boast the lowest possible rates for a high-risk business.
EMB, a BBB-accredited company with an A+ rating, is voted the #1 high risk merchant processor in the U.S. eMerchantBroker.com provides high risk merchants with the most advanced fraud prevention and chargeback mitigation solutions in the industry.
AMEX for High Risk Merchants
As a rule, AMEX and other card networks assess the likelihood of chargebacks and fraud when approving a merchant for payment processing services. If you’re a high risk merchant, be ready for a larger amount of transaction disputes.
AmEx places high risk merchants in one of its chargeback programs or terminates the processing agreement in the worst-case scenario. The payments giant considers a merchant high risk if the latter poses the greatest threat to the company. Be aware that AmEx has distinct chargeback reason codes that differ from those associated with other network codes.
Also, American Express keeps all-new network merchants under monitoring. Besides, the company may also watch over the established merchants’ behaviors and steps taken in case any issue exists.
As you see, AMEX is an option to consider for high risk merchant processing. Only, you should shop around to find the most suitable payment processing services for your own business wants and needs.