Guide on High Risk Merchant Accounts and Online Credit Card Processing


A merchant account is a bank account that holds funds from credit and debit sales for merchants. Merchants that sell products online require a merchant account provider to process their transactions. These fall into two categories. One is a merchant account provider that issues businesses their own personal account, and the other is an aggregator, that uses their merchant account to process payments for other businesses. Before deciding which option is best for you, you should realize that it can be difficult to obtain a merchant account. This Guide on High Risk Merchant Accounts will tell you what you should do to do to obtain a merchant account if you decide that it’s the right option for you.

If your business needs a merchant account for processing your credit card transactions, you must apply to get one. This is because certain types of businesses are seen as a financial risk, and credit card processors risk losing a great deal of money. Credit card processors have an application and screening process in order to lower the risk that they will be taking on. There are some businesses that credit card processors find riskier that others, so these businesses may find it more difficult to open a merchant account. These include: sexually oriented businesses such as pornographic websites and adult video stores, internet gambling sites, telephone services such as chat lines, and any other high risk businesses.

Even though certain businesses may be considered high risk, having a sound business plan and a strong processing history can help with approval. Another thing that may help to get an account approved is the duration of the fulfillment timeline, which means the time it takes for you to deliver the customer’s goods after the purchase. Businesses that sell specific items that can be delivered quickly tend to fare better. You should also be honest about your business plan, and any relevant steps you plan to take that will help your business to be successful.

In the end, it is up to you to help convince credit card processors that you are worth the risk. Having a sound business plan in place, with a good processing history can help, but that is still no guarantee of successfully obtaining a merchant account. Being honest about your business portfolio and business plan can also help when you’re seeking approval for a merchant account. Most importantly, remember to read the fine print before signing any contracts or making a deal that sounds too good to be true.

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