Are you starting a new business ?? or either processing to start a new one, you will be surprised to know that your business might be considered at high risk by some of the banks. Plus, most of the small businesses might never have heard about ‘high-risk merchant account’ until their business is spotted at high risk. But what it is all about and how can you know that your business is high risk or is at low risk?
High Risk is a credit card processing industry specified term imposed to greater processing risk to banks and businesses in the payment industry. Whereas, an industry or a business is considered at high risk for distinct reasons, such as
- Greater chargeback risk
- New or legally regulated industries which periodic processing banks want to underwrite, or
- A business may accept a high percentage of transactions over mail or phone.
Apart from this, there are several businesses with quality products and services that can be contemplated high risk but many merchant service providers decline to accept these types of businesses.
Thus, a high-risk merchant account is usually defined as a payment processing account for businesses that are deemed to be at high risk to the banks. Since, your business is regarded as high risk, how come you will choose the best High-Risk payment provider? That said, given are the criteria you can use to identify the best high-risk processor;
- Dishonest sales and corrupt sales agents are usually common problems that are faced in the merchant industry.
- With every processor setting their rates and terms, it’s difficult to explain all the subtleties on a site. So, it is required to closely work with the sales and advertising of a merchant.
- A true specialist in High risk will have an in-house trained team trading with high-risk accounts.
Similarly, to look for an honest merchant provider you can seek things such as personalized customer support, equitable contract terms, and factual sales practice. Henceforth, if you are thinking to apply for a merchant account it is first required to know whether you are a high-risk merchant or a low-risk one. Also, if you set up a high-risk merchant account through a credible platform you can rest assured that risk will be minimized and the process will be simplified.