Why High-Risk Credit Card Processors Are Needed

Mar 25, 2022

An essential part of every e-Commerce establishment is the ability to process credit and debit card payments. If you happen to be a high-risk business, you simply cannot seek the services of a traditional merchant account.

So where can a high-risk merchant turn to? A high-risk merchant account. Seeking the services of high-risk merchant account providers will be a worthy investment since they specialize in the high-risk sector. 

Why Do You Need A High-Risk Merchant Account?

Now that we have established what to look for in a trusted high-risk merchant account provider, let’s explore why high-risk merchants need a high-risk merchant account. High-risk merchant accounts have everything they need to expand their reach and their revenue. Let’s look at why opening a high-risk merchant account is essential.

1. Sell Worldwide

Most e-Commerce establishments want to grow their reach. Unlike low-risk businesses, high-risk merchants have the freedom to take card-not-present transactions, sell in a variety of currencies, and sell to countries outside the “accepted” countries of the world such as the U.S., Japan, Australia, and Western and Northern Europe. 

2. No Cap On Earnings

Unlike low-risk merchants, high-risk merchants have the freedom to take recurring payments, have no limit on how much they earn per month, and can take higher than average dollar amounts for credit card transactions. 

3. Chargebacks Do Not Endanger Business

Low-risk merchants must be wary of not exceeding their chargeback ratio, for fear of getting their account shut down. This is not the case for high-risk merchants. Although excessive chargebacks are not encouraged, their accounts are seldom closed for this. They will have to pay fines, but the life of their business is not in danger. 

What To Look For In A Reputable High-Risk Merchant Account Provider

Choosing the right high-risk merchant account provider to partner with may seem intimidating, but it is not impossible. You will need to have these considerations in mind before you choose the provider to work with:

  • Vet Its Expertise

A good way to investigate and legitimize a provider is to do a little research.

You can begin by looking the company up in the Better Business Bureau and other business advocate groups. Looking up reviews on the company as well as talking to other merchants in the industry could provide you with essential information about the company. 

  • Security Measures Are Vital

The very nature of being a high-risk merchant is that it will be at a higher risk of experiencing fraud and chargebacks. Given this real and very possible scenario, your high-risk merchant provider must have solid chargeback protection solutions. It must also be equipped with fraud prevention tools, real-time alerts, and AI-generated fraudulent assessments. 

  • Flexible Payment Options

An e-Commerce establishment is more likely to build and expand its customer base if they offer various methods of payment. More customers are likely to abandon their cart if their preferred method of payment is not featured on the merchant’s website. 

If the provider does give you numerous methods of payment, do inquire about terms and conditions, as well as fees. 

  • Tech-Friendly

The solution you choose will need to be seamlessly integrated into your established services. Ensure that the payment gateway you choose can service multiple accounts. The merchant account provider must also have flexible APIs to give you the maximum authority to set up your payments. The onboarding process must be fast and with “user-friendly transactions.”

High-Risk Merchant Accounts Are A Worthy Investment

High-risk merchant accounts do charge higher fees than a lower-risk merchant account provider. This is to be expected as high-risk merchants must bear the brunt of the risks involved. However, this is a small price to pay in exchange for more freedom to conduct your business, without limits.

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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.