Finding credit card processing solutions for your High Risk Business
Read on to know what makes a business high risk and how to get a merchant account for businesses which have been classified as high-risk.
What makes a business- High Risk?
Businesses which offer services like advance payments (advance booking and subscription services), fixed date of delivery, cashback are considered to be high risk. High volume and rapidly growing businesses are also considered under the same category of high risk business.
When such businesses are given a merchant account from an acquiring bank or merchant services provider then they enter into a credit agreement. Whenever the customer issues a¬†chargeback¬†(request for a refund) and the business lacks sufficient funds to repay it then the provider has to foot the bill. Similarly, when the customer buys goods with a stolen or cloned credit card then provider is at equal risk as the business. Thus every merchant account provider pre-determines the risk by considering the percentage of chargebacks that can happen and then decides to issue a merchant account or not.
The following industries have been classified as high-risk. If your business is under any of these categories then you are likely to face difficulty to get a merchant account.
- Travel industry
- Theatre, concert and other event ticketing
- Subscription products
- Online pharmacies
- Online casinos and bookmakersReplica clothes and products
- Debt collection services
- Online dating services
- Alcohol and Tobacco sales
- Dietary supplements and herbal products
- IT and technical support
- Adult products and entertainments
- Online auctionsFile sharing
- ISP and web hosting services
How to find merchant account solutions for your high risk business?
Many mainstream providers are unwilling to provide merchant accounts to high risk businesses. So, such businesses need to find specialist high-risk merchant account providers to get credit card solutions for their businesses. Such specialist providers also provide web support services and other safeguards to prevent any chargbacks or frauds.
High risk merchants that have been in the business for at least a year with a good trading history can easily get a merchant accounts from mainstream providers such as¬†AMSLV.
You will find many such merchant account providers which may provide merchant accounts for specialized high risk sectors or for all sorts of sectors. The merchant account provider would ask for the trading history of your business, a detailed business plan for lending you his merchant services. A solid business with few chargebacks will always increase your chances of getting a merchant account.
Thus, get in touch with a reputed merchant account today and get started with the process.