High Risk Merchant Account: What Is It, and Do You Need One?

Apr 24, 2018

A merchant account is a type of account that allows businesses to accept credit and debit card payments from their customers. A high-risk merchant account is a special merchant account created expressly for merchants traditional lenders turn away because they deem them to be “high-risk”.

Why is A Business Considered High-Risk?

The most common reason a business or industry is considered high-risk is if it experiences a high rate of chargeback activity. Other reasons include: bad credit (or no credit), limited time in business (startup) and past bankruptcy issues. At the first sign of a chargeback problem, businesses often discover their merchant account has been shut down. This leaves the business with no way to process its customers’ debit and credit card transactions.

  • Here are just a few of the industries that might be considered high-risk because of chargebacks
  • Airplane charters – occasional long wait between the charge and the service – plans change
  • Adult content of any kind – potential embarrassment for the provider
  • Firearms – banks are sometimes criticized for doing business with these merchants
  • High-risk investments – the potential of failure, transactions can be very large and the won’t necessarily be present (possibility of fraud)
  • Vitamins and supplements – hard to prove they are effective and consumers are sometimes unsatisfied

High-Risk Merchant Account

When they find themselves in this situation, many businesses turn to a high-risk merchant account to get their payment processing back up and running. A high-risk specialist like eMerchantBroker.com specializes in helping businesses that are considered high-risk by traditional providers. Are you still not sure if you need a high-risk merchant account? Here are a few more factors that will influence the decision:

  • Business Location
  • Business Size
  • Credit History
  • Credit Card Processing History
  • High Chargeback Ratios
  • Type of Industry
  • Whether a Business Exclusively Operates Online

EMB has years of experience in providing high-risk merchant accounts to these businesses and industries that struggle with high chargeback rates (and many other high-risk issues). Adult, online gaming, tech support, nutraceuticals, multilevel marketing, moving and transportation, online firearms, travel and timeshare and collection agencies are just a few of the business types and industries EMB works with.

The Benefits of Working with a High-Risk Specialist

In addition to an experienced staff, EMB can have your business setup fast – thanks to same-day approvals. Your business also gains multiple payment gateways, so you can take payments faster than ever before and minimize chargebacks. Other benefits of partnering with EMB include:

  • ACH Processing
  • Business Funding
  • Chargeback Dispute Resolution and Prevention Programs
  • Instant Check Processing Solutions
  • High-Volume Payment Solutions
  • Merchant Cash Advances
  • Mail Order/ Telephone Order (MOTO) Processing
  • Online Payment Gateways
  • Point-Of-Sale (POS) Solutions

If you need secure credit card processing but have been turned down time and time again, EMB can have you setup in as little as 24 hours with the lowest rates in the industry. EMB has been voted the #1 high risk processor in the U.S. and is rated A+ by the BBB. In partnership with Verifi and Ethoca, EMB offers unmatched chargeback prevention and protection services in the industry.

Your business can protect itself and fight against fraud without encountering major challenges like having your merchant account suddenly shut down. There are no application or setup fees, and no annual fees or gimmicks. Your business can secure high risk rates as low as 2.99%. The application itself takes just minutes to complete. Unlike working with the bank, you are not required to provide endless documentation or sign complicated contracts.

To learn more about our high-risk merchant account and other services, contact our team of experts today!

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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