High Risk Businesses Worth The Risk

Nov 02, 2015

Most traditional payment processors say no to high risk merchants. But a few trailblazers in the high risk market say that these businesses are worth the risk. Michael Foy of International Merchant Processing Solutions in Belize has dedicated his entire company to providing processing services to the types of merchants that most U.S. banks won’t touch. These businesses range from adult content and ecommerce to timeshare properties and weight loss supplements. So if high risk businesses are such a hot commodity, why don’t more processors invest in them?

The problem is that high risk merchants have higher instances of bankruptcy, fraud, litigation, chargebacks and data security breaches. But if acquirers are willing to take a chance, their profits can be astronomical. Foy recounts that many of his businesses make $500,000 to $1 million in volume each month, making them worth the risks.

Despite the promises of profits, individuals interested in high risk businesses may have a hard time finding a reputable payment processor. When Foy began his processing company, it took a while to find a bank to work with. But once he found a processor, his residuals multiplied 100 times. Even though his profits soared, his merchant account was shut down after only a few months. Since then Foy like many other high risk merchants, turned to offshore payment processors for help.

But high risk merchants who turn to offshore accounts will spend more money on the average merchant transaction than they would with domestic accounts. ISOs usually make about 10 basis points on most merchant transactions, but many offshore payment processors charge high risk merchants an extra 1% to 3% because payment services are hard to find. On top of this, merchants also pay 2.5% or even 3.5% more in fees than in the U.S. with offshore accounts.

High risk businesses are extremely lucrative, but most business owners have a hard time securing payment processing. As a result, many turn to offshore processors who charge high fees. eMerchantBroker.com is a low hassle, low cost payment processor that will build and manage your high risk merchant account and won’t strip you of your profits. Our agents will protect your transactions and increase your profits.

Let us help you get a high risk merchant account today!

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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.

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