Find the Best High Risk Merchant Account

Finding the best high risk merchant account

Written by a guest blogger for USA Payment

Retail storefront businesses and online business with low risk profile rarely have to face the problem that high risk businesses face. Most of the time, traditional domestic and international merchant account providers deny services to high risk businesses. As a result, these businesses do not have a way out to accept credit card and other electronic transactional payment methods from its consumers and they risk falling behind the competition. In such a situation, there are a few options that can help them find the best high risk merchant account provider.

There are various categories of businesses that are classified as high risk business. In the payments industry, such businesses require a high risk merchant account. The main criteria behind such classifications vary from merchant to merchant. Some merchants are denied an account on the basis of their high sales, which tend to speculate that the business might be fraudulent. In such scenarios, even though the sales are high and the business is making profit, they are unable to accept payment from customers online. Such a drawback in the service can severely hamper the future potential of the company. Some of the aspects of a business that can attract the categorization of a high risk business, requiring a high risk merchant account, include:

• A business that does meet all registration requirements of the law
• The business or a related party is blacklisted by merchant account providers due to bankruptcy or fraudulent transactions
• Inconsistent credit history of the business
• Business generates high volumes of sale due to the abnormally large number of transactions. In such a case, it is possible that there might be instances of unethical business policies or,
• The business is too small and does not support enough profit. As a result it would not be able to afford the high costs of fraudulent business detection tools, other software and miscellaneous expenses towards third party processor fees

There are also a few industries which are regarded as high risk segments and businesses falling in those segments are treated as high risk business. They would require finding the best high risk merchant account provider available in the industry in order to continue their business without having their account cut off or paying fees that are too high for their particular risk. These segments include, but are not limited to, adult entertainment, pharmacy, and travel, ISP hosting business, online auctions, online casinos, telemarketing products, online dating, cigarette and tobacco products and sale of replica products.

In such a situation it is ideal for this business to look for high risk merchant account providers. Currently, there are many banks and processors that claim to offer high risk merchant accounts, but only a select few can be considered the best high risk merchant account providers. Experience and longevity can allow a processor to become a market leader in providing the best high risk merchant account.

When you find a high risk merchant account expert, the procedure can be pretty simple. The high risk business would need to get in touch with the provider, usually by completing a short pre-application. After an initial review of the company’s information, an application is provided to apply for a high risk merchant account and any additional required information is requested. After a short underwriting process, rates and terms are established that are mutually beneficial and will allow the merchant to process without disruption and at a cost that allows them to conduct their business, avoid fraudulent activity, and operate with a profitable margin. All of this becomes possible when traditional routes are avoided for high risk industries and you find the best high risk merchant account provider.

Please contact USA Payment for any questions regarding your high risk merchant account.