High Risk Merchant Accounts

A high risk merchant account refers to businesses that pose a greater risk of chargebacks. If you have a home-based business or doing online business, processes online payment transactions, then your business will likely be identified as a high risk merchant account.

Banks consider some businesses to be high risk merchant accounts due to different reasons including the nature and location of your business. If your business shows history of chargebacks or disputes or prone to chargeback, then you will have to go through the crucial process just to receive merchant services.

Not only that once considered a high risk merchant account, but you will also be required to pay higher fees for merchant services and will only be allowed to a certain number of transactions to make sure you have enough cash reserves.

Or in worse cases, banks will refuse to work with you. All these can impact your business negatively, so it is best to find a high risk merchant processor to help you set up a high risk merchant account.

Benefits of a High Risk Merchant Account?

Setting up a high risk merchant account is vital for your business operation. This may entail high fees and some drawbacks, but you will be surprised that high risk merchant account also has countless benefits:

• Global coverage. This means you can expand your business globally as you are now capable of accepting payment in different currencies. Greater market coverage means more potential sales and profit.
• Business growth. With a high merchant account, you can now sell your products or services globally. Bigger market share allows your business to grow.
• Being able to sell your products or services across different countries means more money.
• When a chargeback happens, your provider will activate protection to prevent fraudulent activities.
• More payment options. Wider payment options allow your customers to choose a convenient way of payment making them very likely to purchase items or use your services.

How to Apply for In A High Risk Merchant Account?

Applying for a high risk merchant account is easy and free. Simply fill out an application form along with the needed documents about your business or company.

Below are the additional supporting documents that you need to submit:

• Identification, Passport or State ID
• Bank statements
• Proof of business, website ownership
• Proof of active Bank account

Additional documents may be requested by underwriters but is still dependent on the type of business or based on your specific business requirements.

What to Look For In High-Risk Merchant Account Processor?

With so many high-risk account processors offering their services, choosing the right one can be a difficult choice. But to make the process a little convenient, always consider the following before making a decision:

• Support
• Expertise
• Pricing
• Security indicators
• Technology
• Supported business models

While being identified as a high-risk merchant is hard and can greatly affect your business, it is something that can be changed. Do something about it by finding a high-risk merchant account provider that offers fair pricing and excellent support to guarantee your issues will be addressed promptly.

When you have been completely turned down with your high-risk merchant account application, move on and look for an experienced processor that will assist you in successfully setting up your account.