If you have been classified as a high-risk merchant, then you know how difficult it is to transact businesses. This is why you need to open a merchant account. The key to a high-risk merchant account is to understand the risks of avoiding a bad credit account. Merchant accounts are complicated for any layman. If you are a high-risk payment processor highriskpay.com, then here are some things to understand about these accounts:
Table of Contents
1) What are high-risk merchant accounts?
High-risk merchant accounts are business accounts that are designed for businesses that have a higher transaction rate and are considered to be bigger risks for fraud.
A high-risk merchant account helps reduce the costs associated with return charges, chargebacks, and any other fees incurred due to fraudulent transactions.
There is a bigger chance of these accounts getting declined, so it makes it more difficult to get approvals. Any merchant who sells online products or services is considered to be high risk as they do not have any physical locations.
These high-risk merchant accounts exist so that people take extra responsibility for protecting their businesses and websites from fraud by people shopping online.
2) What are low-risk merchant accounts then?
All payment processors have their guidelines, but some factors are common across all market players. The generic features for low-risk merchants are:
- Must process less than $20,000 monthly
- Average credit card transactions must be less than $500
- The industry as a whole is considered low-risk
- Zero to low chargeback
- Countries where operating are low risk (Japan, USA, Australia, Canada, EU countries)
- Minimum returns
3) What are the features of a high-risk merchant?
If a business comes with a high chargeback, then it has a higher risk involved. So, the main factors that matter for a high-risk payment processor highriskpay.com are processing history and industry reputation.
Here are some overall features of a high-risk merchant:
- Average monthly sales volume of more than $20,000
- Average credit card transactions higher than $500
- Businesses that sell products/services to countries with higher fraud levels
- The business has a bad credit history and high chargebacks
4) Difference between low-risk and high-risk Merchants
|Low-risk merchant||High-risk merchant|
|Average monthly sales||> $20,000||< $20,000|
|Average credit card transactions||> $500||< $500|
|Accepting different currencies||No (only 1 currency)||Yes (Multiple currencies)|
|Offers subscription payment options||No||Yes|
|History of excessive chargebacks||No||Yes|
|Main products offered||Low risk – office supplies, home goods, baby products||High risk – software, seasonal items, flight tickets, digital services|
|Selling to high-risk countries||No||Yes|
5) Who needs a high-risk payment processor highriskpay.com?
Any businesses that sell to high-risk countries, have an average monthly sales volume of over $20,000, and have a history of excessive chargebacks need a high-risk payment processor highriskpay.com. This is due to cancellations by customers, refunds, and customer chargeback claims.
Many industries are prone to getting chargebacks. Some of the most common ones who need high-risk payment processor highriskpay.com are:
- Airlines or ticket booking websites
- Annual contracts
- Attorney referral services
- Banned/illegal goods & services
- Casinos, gambling or gaming sites
- Cigarette, Vape, or CBD stores
- Collectables – coins, currency, auctions
- Collection agencies
- Dating sites
- Event tickets
- Fantasy sports websites
- Financial services – brokers, consultants, indirect consultants, planners & advisors
- Health and wellness products
- Horoscopes, fortune tellers, astrology, or psychic services
- International import/export services
- ISP or hosting services
- Medical programs
- Money transfers
- Membership based companies
- Modeling agencies
- Multi-level marketing agencies
- Movie, software download, and upload websites
- Offshore corporation services
- Prepaid calling cards
- Real estate
- Smartphone sales, resales, and spare parts sellers
- Social networking websites
- Tour operators
- Vacation rentals
- Vitamins and supplement sellers
- Weapons sellers
If you are a seller in any of the abovementioned industries then you are a high-risk merchant and need a high-risk payment processor highriskpay.com.
6) How much are the fees of high-risk merchant accounts?
Unfortunately, high-risk merchant accounts cost more than low-risk ones. As a high-risk merchant, there are inevitable costs you may need to face, so you need to prepare yourself to pay higher processing and account fees.
But, these high fees can be tailored to suit your business. Check multiple services where you do not need to be stuck in long contracts of 3-5 years and pay unnecessary costs.
High-risk payment providers still charge fees such as setup fees, annual and monthly fees, and even PCI fees. So, before you sign any contract with them, read the document carefully. You may also be charged an early termination fee that is only applicable when you close the account before the contract ends. All details of hidden costs are included in your contract. So, read it carefully before signing.
But, the payment processing industry is now moving forward. With players like the high-risk payment processor highriskpay.com, you can get tailor-made agreements to suit your business.
7) How can I apply for a high-risk merchant account with a high-risk payment processor highriskpay.com?
To get a high-risk merchant account with a high-risk payment processor highriskpay.com you first need to fill up an online application form. The process for application is short. When you choose a high-risk payment processor highriskpay.com, then you need to contact their advisors. They will guide you to a bank that connects with your business needs. Once it is approved by the bank, you can start processing payments online.
The documents you need to prepare before applying for a high-risk merchant account with high-risk payment processor highriskpay.com:
- Certificate of incorporation
- Certificates of shareholders
- Shareholders’ organizational structure chart
- Copy of passports, utility bills of local directors, and shareholders holding more than 15%
- Incorporation certificate
- Processing history with details of volume, total transactions, and chargeback percentage for the last 6 months
- License number and organization name
When applying for a high-risk payment processor highriskpay.com merchant account, then remember that the terms and conditions may be stricter than those of normal ones. So, always check the contract before signing. Check to see if there are any hidden fees and how high is the rolling reserve.
If you are looking for a high-risk merchant account for your business, then contact the high-risk payment processor highriskpay.com today!