Some businesses are high-risk even if you have the perfect credit score; it is more about the nature of your business than the financial situation of the business. If your business is high-risk then you will need to apply directly to a high-risk merchant account supplier who will take you through the process and your application.
Depending on what your business is will depend on its classification as to be more of a risk. Some businesses that are high risk include those businesses that deal with adult-only businesses, this can include dating sites and adult-only content sites, collection agencies and even electronic cigarette businesses are a higher risk.
If your business trades in one of these areas of high risk, then the likelihood of applying for and getting a merchant account supplier who doesn’t take high-risk clients is extremely slim. Therefore, it is important that you understand the requirements of a merchant provider to ensure they are going to consider your business before you waste time on an inappropriate application.
The reason behind the business classification as high-risk depends on a number of different factors. A business that has most of the trade online is susceptible to fraudulent use of the credit or debit card, the cardholder isn’t present in the transaction and this can lead to a number of complaints as well as a high chargeback percentage.
Businesses have a higher risk factor due to the company not getting the money paid or a person defaulting on the payment. These types of businesses are collection agencies or even bailiffs that are reliant on the client not skipping bail in order for the bond repayment to go back into the business.
Therefore, even if you have the perfect credit rating, your business runs the possibility of being high-risk; it just depends on the type of business you own.
Get approved for a High-Risk Merchant Account with eMerchantBroker today!