High Risk Credit Card Processing Now Available for High Risk Businesses

Jul 20, 2015

In online payment processing, some business are considered riskier than others. In fact, some industries are deemed unsafe altogether. If you do business in one of these industries, you need to prepare yourself for the “risks” that may come along. The good news is that if your bank deems you “high risk,” they will not hide it from you. Instead, they will inform you about it and even discuss possible repercussions.

One option if you’ve been labeled as “high risk” is to turn to high risk merchant dealers such as eMerchantbroker.com. By getting high risk credit card processing rather than an ordinary processing account, you not only protect your business, but also your customers.

The Basics of High Risk Card Processing

First, you need to understand that while one provider might view your business as high risk, another might not see it as too risky. This means that you only become a risk to the account provider if the provider’s underwriting guidelines say so. If the guidelines are strict, then it may be very difficult to get approved. However, if the rules are relaxed, then getting an account might not be a big problem.

You can be categorized as “high risk” because of a number of factors. Maybe your industry is notorious for high chargebacks and fraud, or maybe you have a terrible credit rating. Some account providers also consider offshore businesses generally high risk. It is also possible to be categorized as high risk if you deal in controlled goods (such as guns) or illegal services (such as adult content).

A category of merchant account providers actually specialize in high risk accounts. This means that even if you’ve been labeled as “high risk” by your bank, you may still be able to open an account with a high risk merchant account provider. When you’re labeled “high risk,” these are the people you need to approach.

Expect Higher Rates

Due to the risks involved, high risk merchant account providers typically charge higher interest rates. The reasons are pretty straightforward. When they are your only viable alternative, you don’t even need to negotiate much.

However, you need to be a little careful, so you don’t end up getting an account with some unregistered company that doesn’t even provide such services. Recent studies show that for every one ethical and reliable high risk merchant account provider out there, you will find 325 unethical ones just waiting to prey on your money.

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 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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