Low Risk Vs High Risk Payment Processing

Jan 19, 2018

Are you trying to get a merchant account for your business? Banks and payment providers will assess the risks associated with your business and decide whether or not they can approve you for payment processing.

In case they consider you’re high risk, you’ll be charged higher rates. Moreover, they can even refuse to open a merchant account for you. It all depends on the level of the risks you’re business is involved with.

High Risk Vs Low Risk Merchants

Before you’ll get approved for a merchant account, payment processors will decide whether there is a reasonable risk associated with your business. They’ll consider factors like how long you’ve been in business, what your reputation is, and more.

  • Payment processors will label your business as high risk if:
  • The industry you’re in has a high chargeback ratio
  • You’re dealing with a higher rate of fraud
  • Your business is new and doesn’t have a solid reputation yet
  • Your business lacks financial stability
  • You, as a merchant, have poor credit
  • Most of your customers buy months in advance, and the product/service is consumed much later

Payment processors will classify your business as low risk if:

  • Your business processes less than $20.000 per month
  • Your average ticket size is less than $50
  • You have zero to low chargeback ratio
  • You’re in a low risk industry
  • You’re incorporated in a low risk country
  • Risk assessment factors vary from processor to processor, however, the basic ones have to do with higher rates of chargeback and fraud.

Open a High Risk Merchant Account with EMB

If you’re tabbed as high risk, expect to pay higher fees and additional charges, and choose from fewer and less favorable service options. However, with a reputable payment processor like emerchantbroker.com, high risk merchants can enjoy the lowest possible rates and the best terms for high risk credit card processing in the industry. EMB is voted the nation’s #1 high risk merchant account provider and boasts an A+ rating with the BBB.

Emerchantbroker.com talks to every single business owner and gets to know their business. EMB then works with banks that specialize in the types of business its clients are in.

  • Even if you’re considered high risk, there’re steps you can take to lower your risk:
  • Reduce your risk of chargebacks with strong fraud prevention tactics
  • Focus on generating stable streams of revenue and avoid occasional streams of large revenues
  • Demonstrate you’re able to keep up with high trading volumes

As a high risk merchant account provider, emerchantbroker.com guarantees secure credit card processing for online businesses and offshore merchants worldwide. If your business is what traditional banks and processors classify as high risk, turn to EMB for quick and safe transactions.

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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