More and more high-risk merchant accounts are coming into the limelight of late. That’s possible because high-risk businesses have understood the importance of having a high-risk merchant account.
What is a high-risk merchant account?
First things first, running an online business is not easy unless and until you give secured payment options to your customers and by secured payment options, we mean payment by credit and debit cards. If you are already running an online business, then you will understand why credit and debit card transaction is essential for your business. Although there is other online payment option available like PayPal and Square, but to grow your company, you will need a reliable merchant account.
While it would be really nice for all financial institutions to treat businesses of all kinds equally, there are specific businesses which are considered as high risk, and that’s when the problem arises. The companies which are regarded as high risk usually have to face severe consequences. Many payment processors will often refuse to do business with such companies, just because they fall under the high-risk merchant account category. A high-risk merchant account is those who provide services or sell products which are considered to be risky. And high-risk merchant account usually deals with a lot of chargebacks due to which local banks and international banks deny their application for credit card merchant account. That’s the reason why business which is considered to be at high-risk, should opt for a high-risk merchant account.
How to know if you are a high-risk merchant?
Now, since you have gotten an idea about a high-risk merchant account, let’s dig into it a little further to see whether your merchant account is risky or not. Read the following points:
- Pharmaceuticals: If you are selling medicines or controlled substances which might have an adverse effect if taken without any supervision, then your pharmaceutical company will be on the high-risk merchant account list. However, the most under fire industry which are always under the radar is the cannabis industry. Although many states have legalized the use of CBD and its products, there are still financial institutions that find it risky to do business with.
- International business: If you are running a business whose products will travel from country to country, then you might be considered as a risky business too.
- Gaming industry: Another industry which is considered to be risky is gaming, mainly because they face a lot of chargebacks and frauds. There are countries which don’t allow sports betting and consider it to be illegal and hence the repercussion.
- Adult entertainment industry: Looking for a merchant account which deals with adult content are deemed to be risky too.
- Travel and lodging: No matter how surprising it sounds, but even the travel and lodging industry are considered to be unsafe, mainly due to high chargeback ratio by unsatisfied customers.
Other than these, firearms, network marketing, all card-not-present transaction, high-volume transaction, and high average ticket amount are also considered to be risky.
Here’s why you should choose a high-risk merchant:
A high-risk merchant account is making it more and more feasible for high-risk merchants to run their operation smoothly. Having said that, a high-risk merchant account is promising and will solve a lot of problems. Here are some of the benefits:
You Want to Earn More. Some high-risk merchants routinely depend on regular repeating payments or whole expansive transactions to give a constant flow of income that impels their organization forward.
In any case, having a high-risk payment merchant account solution provider, you can keep on utilizing this plan of action absent much trouble.
You Want to Become More Secure. The meaning of “uncertain” organizations implies that they should be cautious with their high-risk preparing.
High-risk merchant account suppliers will typically utilize dependable recognition strategies amid the exchange procedure to realize whether the card, alongside the credit card’s original owner, is legitimate.
These safety procedures help ensure the association, the dealer supplier, and the card’s unique proprietor from extortion or burglary.
You Are Looking to Expand. You can avail benefits from high-risk payment processors in case you’re hoping to extend, as typical generally safe processors force constraints (both in spending and in cash) on exchanges through credit cards that can hinder development.
The procuring capability of more deals alone can make shaky dealer accounts appear to be alluring; include the possibilities of pitching to more places – and in numerous monetary forms – and all of a sudden the income openings become vast.
What will be the status of high-risk merchant account in 10 years down the line?
Since high-risk merchant accounts come with a lot of benefits, they can boost your company’s sale too. Since local banks and international banks usually deny online transaction when it comes to high-risk merchant accounts and they also deny the application for transactions from high-risk merchant accounts, high-risk merchant account service provider will be in great advantage. It is they who allow companies who are into pharmaceutical, international business, gaming, and, and more to have a safe payment gateway for their transaction.
It seems within ten years high-risk merchant accounts will be in much better shape and state. Many countries have legalised the use of CBD products, so we can expect high-risk merchants to be allowed to do transaction way more easily than before.
The only thing you should worry about to keep your business up and running is to get hold of a reliable high-risk merchant account service provider. They will answer all your concerns, and these service providers are definitely suitable for your business.
The process to get approval for high-risk merchant account still consumes a lot of time because even the merchant provider has to be 100% sure that your business will bring in profit to them too. However, within ten years down the line, we can expect the application process for the high-risk merchant accounts to get a lot simpler.