As a high risk merchant, you are faced with many challenges, especially if you plan to up your online strategy by accepting credit and debit card payments. In order to accept credit card payments, you would need to secure a high risk merchant account. Since you are considered high risk, payment processors automatically flag you as a risk for potential fraud. It can be due to the type of business you engage in or if you have a history of bad credit. It could also be because your ideal customer could potentially present risks of fraud.
The types of businesses that are typically categorized as high risk include the adult industry, online gaming sites, vape and e-cigarette shops.
High risk merchant account providers essentially give high risk merchants an opportunity that is typically denied to them by traditional merchant account providers.
There are plenty of advantages to go with a high risk merchant account to provide all of your card processing needs. Let’s take a look at some:
Advantages of High Risk Merchant Accounts
- Specialization in High Risk
Without a doubt, running a high risk business has its own set of challenges and regulations that it must navigate through. High risk merchant account providers are equipped with sales staff that specializes in the high risk industry. They are trained and experienced with dealing with all the nuances within a high risk merchant account. If you are new in the industry, it is imperative to have trustworthy and knowledgeable experts at the ready whenever you need assistance.
- Less Worry About Chargebacks
Typically within a traditional merchant account, an excessive amount of chargebacks could potentially shut down the account permanently. Not so with a high risk merchant account. Since the merchant is already high risk, the merchant account provider is already setup to meet chargebacks and fraud head on. The preventative measures providers use include requiring the high risk merchant to have a reserve fund so that any chargebacks can be withdrawn from that fund. It is usually a predetermined percentage of the company’s average per month sales. There are also protections and detection tools in place to mitigate fraud on these high risk merchant accounts.
- You’ll Earn More
Not only will high risk merchant account providers enable you to process credit and debit card payments, but you will also have the ability to process high volume sales as well as grow your online influence. Traditional, low-risk processors enforce limitations on both money and spending. However, not only can high risk merchants sell to more regions, they can also sell in multiple currencies. This can catapult your business to a greater earning potential.
Do Your Research
With many businesses touting themselves as “high risk merchant account providers”, it is imperative that you do your research to make sure that these providers are true specialists in their field. Ensure that they have competent and knowledgeable staff that is eager to answer your questions. Also, make sure their terms and conditions are reasonable.