Get Approved For The Best High-Risk Merchant Account

May 31, 2022

As e-Commerce continues to enjoy explosive growth in the last few years, even more so during the pandemic, the need for processing credit and debit card payments becomes more of a necessity. This is especially true for high-risk businesses.

However, if you think that a traditional bank or payment processor will gladly partner up with you to open a merchant account, think again. What you will need as a high-risk merchant is a high-risk merchant account.

How Do You Know If You Have A High-Risk Business?

Are you wondering about whether or not you fall into a high-risk category? See if any of the following has happened to you:

  • Your previous merchant account provider terminated your account
  • You have been unsuccessful in applying for other merchant accounts with different providers.
  • Your business has received numerous chargebacks in the past.
  • Your business has higher than average tickets for the products sold.

If you have had any of the aforementioned happen to your business, then you would fall under the high-risk category. 

Choosing The Best High-Risk Merchant Account Provider For Your Business

With so many high-risk merchant account providers on the market, how do you determine which would best suit the needs of your business? Here are some characteristics to consider:

  • Expertise

A high-risk business has a wealth of complexities that only a true expert can help you navigate the tricky waters of compliance and regulation. 

Choose a provider that has worked with your specific industry. The next best option would be a provider that is well versed in a variety of niches within the high-risk industry. 

  • Cost-effectiveness

Make sure that prices are both competitive and fair. As a high-risk merchant, be prepared to pay higher-than-average fees as compared to low-risk merchants. The fees should simply not be abusive. Get a copy of their contract and make sure there are no hidden fees in the fine print. 

  • Customer service

Things are bound to go wrong in business. A merchant account provider can offer you a wealth of resources, features, and great pricing. However, none of this would mean much if you run into a technical gaffe and you need help.

Having 24-hour customer support is crucial in case something goes wrong and you are unable to take payments. Downtime means loss of potential revenue and possibly customers. It would be best if you are able to talk to an actual person. If not, e-mail or live chat would also be helpful. 

Increase Your Chances For Approval

Although choosing the best high-risk merchant account provider can be challenging, it is not impossible. Do a bit of homework to best position your business for merchant account approval. Here are some tips to help you get there:

  • Be honest – Always be completely open about your business practices, what you sell, and other related questions. Withholding information will only spell trouble and could be an automatic rejection. 
  • Have enough capital – In order to prove to providers that your business is financially viable, you will need to submit proof of your “operating capital and assets.” You can include equipment, machinery, inventory, and tools that help you create revenue for your business. 
  • Provide processing history – Here, your provider wants to see how previous payments have been processed. They want to ensure that you are not operating an illegal operation and you are in compliance with regulations. 

Open Your High-Risk Merchant Account Today

Thanks to the growing number of high-risk businesses, there are plenty of high-risk merchant account providers ready to serve you and your business. All it takes is a little investigation and the gathering up of important business documents to ensure you have the right merchant account provider. They will help you process payments quickly and securely. 

Award winning.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.