The type of business you are in will depend on the classification given by the high street banks. The businesses they consider more risky, the less likely they are to offer their services.
The type of businesses that have resulted in this classification can be in a number of different areas. It depends on a number of different factors including whether the majority of your customers are internet based. One area that might surprise you as being high-risk is prepaid calling cards.
There are high instances of chargebacks and disputes, especially if they are online. This is changing with the introduction of regulations in this business sector.
It will mean that the customer and the businesses will need to follow guidelines that are currently missing from an unregulated area of business. The proposal is in a 900-page report and tackles all the main areas of this currently unregulated business, it will have the benefit of allowing genuine businesses to grow their business and supporting their customers too.
Even when these regulations come into force, you can still apply for a prepaid calling card merchant account. These are from high-risk merchant account providers; they are prepared to take more of the risk than typical banks. They are able to provide you with the service you require to meet the needs of your customers who want to pay for their goods using their credit or debit cards.
Therefore, you will be able to provide your customers with payment options and this is important. However, it is equally important that you get a great service and are not penalised by the company because you are a high risk. Choosing the right merchant provider that specializes in high-risk businesses is important, one that doesn’t charge for the application process or has high rates for the transactions.