What is a High risk Merchant?
Defining a high risk merchant is becoming increasingly difficult as regulations and shifts in banking continually change and evolve. The advent of e-commerce has seen more industries than ever fail in an attempt to gain credit card processing solutions for their businesses. This has led to a rise in high risk merchant solutions, although it can be daunting trying to find the best high risk merchant account for your business.
High risk businesses may have poor credit, defaults, high chargebacks or any other number of issues listed on their credit history. These contribute to a company being listed among high risk businesses. New businesses or companies whose owners have poor credit may also be considered as high risk by traditional banks and financial institutions.
When a bank or financial institution rejects a merchant application due to it being high risk, it is generally because of one or several of the following reasons. However, some banks may also classify you as a high risk merchant for reasons not listed below.
There are several reasons an application could be considered high risk by a bank or financial institution:
- The business is new or a start-up and has little or no credit history
- The industry has been blacklisted due to a bad reputation for returns and chargebacks
- The industry deals with high-value tickets (for example - discounted airfare merchants, collection agencies, timeshare merchants etc.)
- The industry deals with subscription-based services and/or products (for example - adult membership merchants, dating merchants, matchmaking merchants etc.)
- The industry deals with high volume services and/or products (for example - nutraceutical merchants, retail merchants, skin care merchants etc.)
- The business has a poor credit history due to a previously terminated merchant account
- The merchant is targeting a blacklisted territory, area, or country
Why Your Business Needs a High risk Credit Card Processing Merchant Account
The importance of being able to accept card payments regardless of your credit history cannot be understated. Online shopping and cashless payments are becoming the primary way of shopping in today’s society and every business owner needs to keep up with the times by using a payment processor to allow them to offer clients a variety of ways to pay for goods and services.
High risk industries which take advantage of payment processing and accept credit card payments are much more likely to be seen as credible and well-established in the eyes of potential customers. Any business owner who has uses credit card processing is sure to tell you that the trust in their brand and profit margins have greatly benefited from using high risk payment solutions.
The ability to have high risk merchant processor services can expand your customer database far beyond the local market. Having payment gateways provides the opportunity to accept card payment from all over the world and in multiple currencies. This could potentially have a huge effect on how your business operates in the future.
In a world that is increasingly dominated by e-commerce, businesses which do not accept credit card payments quickly fall behind and have a weakness against their competitors. A high risk card processing account is the ideal solution for any business which has found problems when applying for merchant services at a traditional bank or financial institution. EthosPay offers easy merchant account to bad credit businesses and high risk processing solutions for companies which operate in high risk industries.
What to Look for in the Best High risk Merchant Account Solutions
The best high risk merchant account will include a range of options which you, as a high risk business, can avail of to improve sales and profitability. To accept credit card payments you must have a merchant account and a payment gateway to allow clients to pay your company for goods or services. In addition to that, security, chargeback prevention, fraud protection, detailed financial reporting, and other bad credit merchant account services must be taken into consideration. Some of the most important credit card processing solutions are listed below.
High risk merchant account payment gateway
Payment gateways are an extremely important part of processing credit card transactions. The gateway is what your client sees when making a transaction on your webpage and is how they will interact with your business when making a purchase.
As this is the face of your business to a client, it is essential that the payment gateway is not complicated and makes purchases as easy as possible. It is also ideal to use a gateway which keeps customers on your webpage rather than using a redirect to the credit card processing webpage. A clean, modern, and easy-to-use payment gateway goes hand in hand with a merchant account.
Reliable high risk merchant banks
The issuing bank is also important when considering merchant account solutions. The bank used for your merchant account will determine your fees and can also affect the speed of the transaction from the customer’s side while they are using the payment gateway.
Having easy access to your accounts and the ability to generate detailed reports from sales is another essential aspect when choosing a merchant bank. The best high risk payment processors will assist you in finding banks that specialize in high risk clients.
Merchant account for high risk business
The merchant account is where your income is held after a payment is made via the payment gateway and is another important consideration. While high risk merchant account providers may come with a slightly higher fee attached, it is worth the additional charges for services such as detailed transaction reports and chargeback prevention which are included with the best high risk merchant accounts.
Highlighted Benefits of High risk Merchant Services with EthosPay
EthosPay started out over 15 years ago by offering high risk merchant services to a handful of industries. Today, we have expanded to cater to over 50 industries with some of the best merchant services available. Our high risk payment solutions are among the best in the industry and with experts on hand at all times, we can assist your business in finding the perfect payment processing solution, tailored to fit the specific needs of your company.
Some of the benefits of an EthosPay high risk merchant account include:
- Alternative Pay Solutions. In addition to a payment gateway that works within the guidelines to accept Visa, MasterCard, and American Express credit card, EthosPay also offers a broad variety of alternative payment solutions, enabling your business to accept PayPal, Apple Pay, Bitcoin, and many other forms of payment.
- Advanced Fraud Scrubbing. Our unique rule-based management allows you to quickly and easily review transactions and block suspicious activity. We have created detailed parameters to help you catch potential fraudulent activity before the payment has been completed and a potential chargeback is necessary.
- Secure Payment Pages. Card-not-present fraud is becoming more and more common as people purchase services and goods online. Our secure payment pages keep every transaction safe and secure, safeguarding your e-commerce payments and reputation.
- Chargeback Alerts System. Avoid hefty chargeback fees with an advanced chargeback alert system that notifies you immediately when a client requests a refund. The system provides you with a three-day window to come to a resolution or refund the client and avoid a chargeback fee.
- Multi-Currency Settlement. Accept a wide range of local currencies and credit cards with our multi-currency settlement. Our merchant services include this extremely convenient tool for merchants who wish to expand their business overseas.
We will approve your high risk merchant account within 72 hours – even if you have been rejected elsewhere – so your business can process credit card payments
Get fast approvals, world-class customer care & highly competitive pricing with EthosPay - the most trusted high risk merchant account provider for more than 50 high risk industries.
EthosPay enables high risk merchants in more than 50 industries to process credit card and other forms of cashless payments quickly and securely. Our credit card processing services are characterized by easy applications, fast high risk merchant account approvals, and world-class customer care, ensuring your business can grow and flourish.
Our high risk industry experts have vast experience in catering to the needs of global merchants who have been rejected elsewhere. Our network of acquiring banks enables us to guarantee a 99% success rate for high risk merchant applicants, an acceptance rate that is unparalleled in the industry.
Our fast and secure application process remains strictly confidential throughout and is processed safely by our specialist personnel who evaluate your business, industry, and options to secure the best high risk merchant account for your needs. Within 72 hours of completing an application, you will be contacted by our account management team and can begin processing credit card transactions almost immediately!