Picking the Right High-Risk Payment Partner for Your Small Business

Sep 08, 2022

As a small business owner, you have enough on your plate, but payment convenience remains a priority. And if you’re in a high-risk industry, you may have had trouble getting approved for a merchant account in the past. 

High-risk businesses are typically defined as those with a higher than average chance of chargebacks or fraud. This can include businesses in adult entertainment, gambling, or CBD industries, among others. 

While getting approved for a merchant account may be difficult, it’s not impossible. Many high-risk payment processors out there can help you get the account you need. But how do you know the perfect fit for your high-risk business?

Top 3 Considerations When Picking a High-Risk Payment Partner

Reputation

First, you’ll want to ensure the company is partnered with a reputable bank. If a bank is willing to partner with the payment processor, that’s a good sign they are legitimate and trustworthy. 

You also want to check the payment processor’s reputation. You can do this by reading customer reviews and finding out how long they’ve been in business. If the company is new or doesn’t have many positive reviews, you may want to consider a different option. 

Fees

When choosing a payment partner, it’s important to understand how much the service will cost. Some firms charge a flat rate per month for payment processing, while others charge a percentage of each sale. It’s important to shop around, compare rates and find a balance between cost and service. 

Beyond the cost of processing payments, you’ll also have to pay a fee to the payment provider for their services. This fee can fluctuate, depending on many factors, including the size of the business and the type of service provided. 

If you’re accepting a payment type that is known to carry a high risk of fraud, you must pay more for merchant services than a business that only accepts credit card payments.

Relevance to your business

Finally, you’ll want to ensure the payment processor works well with your eCommerce platform or POS. Some payment processors specialize in serving certain industries better than others. If you’re unsure, you can discuss with customer service to learn which industries they specialize in serving.

Final Words

Many other factors, such as supported payment types and customer support, also matter when choosing a payment partner, but these 3 can make or break your business. Take time comparing companies before signing up with any.

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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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