As a business owner, you are always looking for ways to reduce costs and increase profits. One way to do this is to accept credit and debit cards as payment for your goods and services. However, if you are considered a high-risk merchant, you may have difficulty obtaining a merchant account. In this article, we will take a detailed look at what a high-risk merchant account is and how you can obtain one.
A high-risk merchant account is simply an account that allows a business to process credit and debit card payments. However, these accounts come with higher fees and rates than standard merchant accounts. This is because businesses that are considered high risk are more likely to default on their payments or be involved in fraud.
There are a number of factors that can make a business high risk, such as:
- The type of business: Some businesses are just naturally high risk. For example, businesses that sell adult products or services, or those that deal with gambling or firearms, are often considered high risk.
- The owner’s credit history: If the business owner has a poor credit history, this can make the business high risk.
- The processing history: If the business has a history of chargebacks or refunds, this can also make the business high risk.
If you are considered a high-risk merchant, don’t despair. There are a number of options available to you. You can either work with a high-risk merchant account provider or you can use a third-party processor.
High-risk merchant account providers are companies that specialize in working with high-risk businesses. They will often have higher fees and rates, but they will also be more likely to approve your application.
Third-party processors are companies that will process credit and debit card payments for you, but they will not provide you with a merchant account. These companies typically have lower fees and rates, but they may not be as willing to approve your application.
No matter which option you choose, make sure to do your research. There are a number of companies out there that claim to be able to provide you with a high-risk merchant account, but not all of them are created equal. Make sure to read reviews and compare prices before making your final decision.
Obtaining a high-risk merchant account can be a challenge, but it is possible. By doing your research and shopping around, you should be able to find a provider that meets your needs.