My Business is High Risk, So What?

May 29, 2015

Starting a new business can be a difficult, but rewarding process. Unfortunately, not every business is treated equally. If our business is considered high-risk, then you may have considerable trouble finding a bank to process payments from your clients. This means your business will have to deal almost exclusively in cash. Luckily, there are a few solutions for high risk merchants to increase their payment methods. The following are indicators that your business is high risk.

Banks and other financial institutions have the same criteria for determining the risk status of a new business. In general if your business has a high level of charge backs, refunds and credit card fraud, and returns it will be classified as high-risk. To mitigate this risk, talk to your ISO as they should be following standardized guidelines to recognize and monitor signs of fraud. Ensure that you keep a negative database that cross references the IP addresses of customers and other information to track suspicious activity and web traffic.

In addition if you have a history of bad credit or no collateral for loans, you will be classified as high risk.

The following are a few major industries that are considered high risk:

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

If your business is considered a high-risk, you will almost assuredly pay a higher loan rate, and have to make higher down payments. If your business is high-risk, your insurer could possibly charge higher premiums to cover the risks of doing business with your company. For example, many high-risk companies pay higher premiums for error and omissions insurance. In addition, your business may be vulnerable to lawsuits and penalties if you are non-compliant with federal and local laws. So knowing your status, and the rules that come with it, are extremely important to your continued existence and financial security.

Today high risk companies must rely on credible third party payment processors that specialize in high risk business, if they are unable to secure traditional processing. eMerchantBroker.com is a low hassle, low cost payment processor that will partner with you to grow your high risk merchant account with expertise and skill. eMerchantBroker.com agents will increase your profits and protect your 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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