High Risk Merchants Still Have Hope

Jun 23, 2015

Are you a responsible business owner who still can’t get a loan or merchant account? Many legitimate businesses are unable to get merchant accounts because they are classified as “high risk.” Even if they do find a bank for payment processing, they may ask for a higher processing rate to counteract the perceived risk. Some banks can even request a reserve on credit card processing. High risk businesses may reconsider signing with traditional payment processors anyway as some may demand to see a positive history in credit card processing before lowering excessive rates. This would require you to show a six month or year of low chargebacks, which may be impossible to reach.

Some businesses do not know they are high risk. Unfortunately, there are many profitable organizations that are considered high risk like:

  • Gaming
  • Bad Credit Assistance
  • Nutraceutical
  • Credit Repair
  • Telecommunications
  • Warranty
  • Technical Support
  • Travel
  • eBooks
  • Electronics
  • Airlines
  • Adult Industry

At first glance, some of these industries don’t seem high risk. But over the years they have developed this label due to high chargebacks, cancellations, and high rates of customer dissatisfaction. A business can also be classified for other reasons outside of an unstable industry. For example, a business can be classified as high risk if the business owner has a low credit score. Perhaps the company does a lot of work with customers overseas, or has poor customer service.

Some of these issues can be resolved by changing business processes that ensure customers are happy or that dishonest customers are caught when committing fraud. For example, companies should make sure their products are legitimate or post disclaimers that state products may or may not work. This gives the company grounds to deny responsibility if a product purchased by the customer does not do what it is supposed to do and limit chargebacks.

Either way, responsible owners can easily be put over a barrel by payment processors who charge excessive fees just to handle high risk businesses. The high risk merchant account managers of eMerchantBroker.com specialize in creating and maintaining high risk merchant accounts that traditional payment processors often deny or punish with excessive fees. Contact us today to learn more about low hassle high risk account management with EMB.

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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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