As a merchant in today’s world, the ability to process credit card transactions is critical to the survival of your business. For high-risk enterprises, however, this privilege doesn’t come easy. Every typical acquiring bank prefers to deal with merchants that won’t put their money at risk. So, if a bank considers you high-risk, it will be very reluctant to lend...
There are several factors that might put your business in the high risk category. One of the main reasons has to do with the higher rate of chargebacks and disputes. As a high risk business, you’ll be unable to secure a standard account with the majority of acquirers, so you should look for a respectable payment processor specializing in the...
What is a high risk merchant account? Often, when merchants hear about high risk accounts, they start to wonder what kinds of accounts they are and who needs them. Unknown to them, high risk merchant accounts can be a life saver, especially for people dealing in “risky” industries. A high risk merchant account is defined as an account for card...
All merchants know that they need a merchant account. However, many do not know if they need a high risk merchant account or a mainstream merchant account. While many companies can use a mainstream merchant account, there are industries that must employ a high risk merchant account processor. So, what is a high risk merchant account? Well, one of the...
The Federal Deposit Insurance Corp (FDIC) announced recently that it has withdrawn its list of merchant types that should be handled with caution, which included businesses they labeled as “high risk.” These businesses included payday lenders, adult entertainment businesses, debt consolidation firms, and others. The FDIC released the list in 2011, stating that these types of businesses required heightened scrutiny...
