Sep 03, 2012

The Search for The Best High Risk Merchant Account

If you run a high risk business, you’re going to need a high risk merchant account. Most banks and traditional merchant account providers have a list of industries which they consider ‘high risk’ – and if your business ends up on that list, you’re either going to struggle to get a merchant account at all, or be faced with a lot of red tape, hoops to jump through and ultimately a less-than-satisfactory deal when it comes to fees. The key to avoiding all this is dealing with a provider who specializing in high risk merchant accounts – but first, what exactly does ‘high risk’ mean and why does it matter so much?

What is a High Risk Merchant Account?

What a merchant account provider defines as ‘high risk’ can vary a lot, but in general it means any business with inconsistent cashflow and a high risk of failure. For example, debt collection agencies are often considered high risk because there is a possibility that the debts they’re chasing will never be paid – as a result, there’s a lot of uncertainty for businesses in that industry. Likewise, industries with thin profit margins or high failure rates for businesses tend to be seen as high risk. Online companies also tend to get branded with the ‘high risk’ tag, especially online gambling or adult sites.

In short, a high risk merchant account is an account designed to operate according to the specific needs of businesses in these high risk industries, without penalizing them with extra fees.

How Do You Get One?

Traditionally, in order to get a merchant account you would have to apply to a bank or similar account provider and – if you’re in a high risk industry – be prepared to do some begging. However, there’s no longer any need for high risk businesses to put themselves at the mercy of banks. By going through the right high risk merchant account specialists, you can get a better deal without having to wait weeks or months to get set up.

So Who Offers the Best High Risk Merchant Accounts?

There are dozens of high risk merchant account providers popping up on the web, but only a handful are really hitting the mark when it comes to providing the exact services high risk merchants are looking for. Of those, eMerchantBroker stands out above the rest as a leading high risk specialist.

eMerchantBroker has managed to cut a lot of the red tape of creating a merchant account and offer a fully online application procedure which can see your account set up within 24-72 hours. Because they have chosen to specialize in dealing with high risk clients, their consultants are well-versed in the typical challenges facing this type of business. Whereas most banks treat high risk clients as a liability and only grudgingly offer merchant accounts options, eMerchantBroker actually makes it their business to help your business grow and thrive with a sensible, cost-effective transaction processing solution.

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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 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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