High Risk Merchant Accounts Are Worth the Risk

Mar 02, 2015

Starting a business takes hard work, dedication, and expertise in a particular industry. If you possess these qualities, then starting a lucrative small business may be the best financial decision you can make. Unfortunately, not all businesses are created equal. If your chosen business is high-risk, then you will have considerable trouble starting a high risk merchant account with traditional payment processors. Banks often avoid doing business with industries who they believe are unstable. Luckily, there are organizations that specialize in funding and managing high-risk merchant accounts. Running a successful high-risk business involves managing these 5 elements.

Recognize That You Have a High-Risk Business

Ask your desired payment processor if your business is high risk. A high risk business is generally defined as one with “a high chargeback ratio.” If your business deals in online sells, trades, gambling, vitamins, electronics, or travelling, the chances are it will be considered high risk.

Know the Risks

There are a few risks when dealing with high risk accounts. These businesses often experience higher than average instances of fraud, chargebacks, customer complaints, and returns. An intimate knowledge about how your particular industry operates, will mitigate these risks.

Recognize and Reduce Fraud

Your ISO and agents should be following standardized guidelines to recognize and monitor possible instances of fraud. Keep a negative database that cross references your customer’s IP addresses and other information to keep track of website visitors, and suspicious activity.

Learn How to Manage Issues Associated with High Risk Processing

Talk to your ISO and sales agents about the specific precautions that your company can take to ensure smoother operations and better profits.

Find the Correct Processing Partner

Recently, the FDIC recanted its list of high risk businesses, still high-risk businesses are discriminated against when seeking a reasonable payment processor. Even if a bank does agree to open a high risk merchant account, they often charge expensive fees for handling the risks.

Today high risk companies must use reputable third party payment processors who are experts in managing high risk business. eMerchantBroker.com is a low hassle, low cost payment processor that will build and manage your high risk merchant account with expertise and skill. 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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