Why You Should Opt for a High Risk Merchant Account

Sep 25, 2020

Starting a business venture is as challenging as it is exciting. To keep up with the latest customer trends, your business needs exceptional payment processing services that offer multiple payment options. You also need capital to put your plans in motion and get started off on the right foot. But what do you do if you discover your business is considered “high-risk” right from the start? What does that mean, and where can you find solutions? The answer all lies with a high risk provider, like eMerchantBroker.

High-risk vs. Low-Risk Merchant Accounts

First of all, it’s important to understand the difference between being a low-risk and a high-risk merchant. While there are many other factors involved, a low-risk merchant typically experiences low chargeback ratios, low reputational risk, minimized returns and a predictable/low amount of transactions processed monthly.

A high-risk merchant, on the other hand, experiences high reputational risk, high transaction amounts and volume, high levels of fraud, bad credit history and excessive chargebacks. The travel industry, for example, is considered high risk due to the various factors that often lead to cancellations. Real estate, firearms, antiques, SEO services, health and wellness products, auctions, credit repair, hotel and motel, electronics and many others fall within this category.

My Business is High-Risk – What’s Next?

If your business does fall within this category, don’t worry! There are still options available to your company that will not only help it grow and thrive, but also protect it from the challenges your industry and business type face. The first step is to seek out a high risk merchant account.

The advantage of securing a high risk merchant account from a high risk provider is that these processors specialize in working with “high-risk” business types. The process is also known for being simple and hassle-free, unlike traditional options. All you need to do to start the process is fill out an application online with a reliable high-risk payment processor. Once you’ve been approved, you can start processing payments online or mobile.

Top Advantages of a High Risk Merchant Account

There are many other benefits to utilizing the services of a high risk processor, but here are a few of the top advantages:

  • Worldwide coverage – Access and reach larger markets across the globe through the ability to accept transactions in multiple currencies and sell to outside, low-risk countries.
  • Chargeback protection – Partnering with a high risk providers gives you the support and tools you need to prevent chargebacks and be proactive when they do occur.
  • Scale your business – If you have been prevented from selling products or services that are not allowed with a low-risk merchant account, a high risk processor can help you scale your business and seize more opportunities.
  • Increased profits – Along with a wider possibility of products and services you can sell comes the chance to increase the profits coming into your business.

Need Support? EMB is Here for You!

With an A+ BBB rating, EMB can be trusted for all your high risk credit processing needs. The process couldn’t be more straightforward: fill out a simple and quick online application, and receive approval in as little as 24 hours. Your sales representative will then assist you in setting up your merchant account so you can get back to business. Our highly trained staff is here to answer all your questions about pricing, contracts, and other services. Give us a call to find out more!

Let us help you get a high risk merchant account today!

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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.

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