Who Can Benefit From a High Risk Merchant Account?
There are many businesses who can benefit from using a high risk merchant service provider. If your business meets any of the criteria below, a high risk merchant account may be the best option for your business.
1. Your Business Is Classified in a High Risk Industry
If your business falls into the ever-expanding list of high risk industries, you may have problems getting approved for a merchant account. There are a number of reasons why industries are classified as high risk including high ticket sales, history of chargebacks or fraud, or a number of other reasons. Some industries classified as high risk include:
- Airfare Businesses
- Debt Collection Agencies
- Adult Membership/Dating Services
- International Import/Export Services
- Magazine Subscription Services
- Pharmaceutical Businesses
- Website/Tech Businesses
- Skincare/Salon Businesses
- Many More
If your business is categorized as belonging to a high risk industry, finding a bank or financial institution willing to provide merchant services is very difficult. Therefore, a high risk merchant account is the best option.
2. You Are Susceptible To Many Chargebacks
If your business is highly susceptible to chargebacks, a high risk merchant account presents an opportunity to both gain the ability to process credit card transactions and reduce the risk of chargebacks. High risk merchant accounts generally come equipped with tools such as Chargeback Alerts Systems which assist in reducing and preventing chargebacks.
Features such as this help to ensure your business does not pay high chargeback fees and remains in good standing with your merchant service provider. In addition, high risk merchant accounts are rarely terminated due to excessive chargebacks, helping the longevity and competitiveness of your business.
3. Your Business Is Susceptible To Fraud
High risk merchants generally need to be more aware and careful when processing credit card payments. Due to this, merchant account providers employ high tech systems to help prevent fraud occurring during the transaction process. If your business is susceptible to fraud, a high risk merchant account will assist in detecting fraudulent transactions and ensuring that payments are legitimate. These features protect your clients, your business, and the merchant provider.
4. You Want To Grow/Expand Your Business
If your business relies on recurring payments, large ticket values, or is expanding, a high risk merchant account is of great benefit. Recurring or large tickets are categorized as high risk by many banks and financial institutions and as such, they make it difficult to obtain merchant services for these types of businesses. Similarly, if you are looking to expand your business it may no longer meet the criteria of a low risk processer and other options will need to be examined. High risk merchant account providers give your business earning potential far beyond other merchant services due to their acceptance of recurring payment, large ticket value, and expanding businesses.
Advantages of a High Risk Merchant Account
For businesses who can benefit from a high risk merchant account, there are also several advantages of opening or switching to a high risk merchant processor, including:
Lower Risk of Account Termination
While the terminology used implies that high risk merchant accounts are riskier than low risk merchant accounts that is not entirely true. Low risk merchants carry their own risk including account termination for chargebacks amounting to more than 1% of total income, a limit on the number of transactions per month, and other strict rules. High risk merchant accounts, on the other hand, are more lenient as the merchant account provider already knows and understands the risks of an account. Therefore, the risk of account termination is much lower for high risk merchants.
Exceptional Security Features
Due to the nature of businesses who apply for high risk merchant accounts, providers ensure that the latest technology is used to combat chargebacks and fraud. These features protect the service provider, your business, and your clients. You will often find the best security measures are implemented by high risk merchant account providers.
Access to an Offshore/Larger Market
Low risk merchants accounts are extremely limit when it comes to international trade or expanding your business. On the other hand, high risk merchant account providers accept businesses who process large tickets or trade overseas. In addition, a high risk merchant account allows your business to create a website for phone and online sales. This offers a huge business opportunity as you can sell products and services to anyone with an internet connection anywhere in the world.
Fast Approval to Start Accepting Credit Card Payments
High risk merchant account providers understand that every minute counts in the business world and work hard to get you up and running as quickly and as smoothly as possible. At EthosPay, we can provide your business with the ability to start processing credit card payments in just 72 hours once all documentation has been received. Apply Now and see why a high risk merchant account is the best option for your business.