What Defines High Risk Credit Card Processing?
High risk credit card processing is defined as merchant accounts that the bank and processor prefer not to do business with. It can relate to poor credit on the part of the merchant, or it can be attributed to different business segments for which the financial institution does not want to participate in or with. It seems like a detriment, and in truth, can be a somewhat scary process to go through. However, by doing your research on what it means exactly (and our tips on how to deal with the high risk part), you should be able to navigate the waters of high risk credit card processing deftly.
What To Know
Each individual processor considers the term “risk” in a different way for many varied types of businesses. Individuals or businesses with poor credit may be turned down by one institution, though they could also be welcomed by another one.
Other reasons potential merchants could be turned away is because of increased risk of potential fraudulent charges. The business itself may have a small fraud risk, but it could be that the merchant that provides services was deemed to be inconsistent with the social value of an institution.
Examples of businesses that are high risk credit card processing companies are: nutraceutical sites. Other high risk accounts are not so apparent, however: dating services, credit repair, natural health, weight loss, multi-level marketing, travel, and mortgage modifications.
How To Acquire a High Risk Account
If you are in need of a high risk merchant account, you could secure the services of an overseas entity to underwrite your transactions, but if you do not have regulation or oversight, this prospect is relatively risky. Or, you could take into consideration a variety of merchant processors who may use that opportunity to charge “abusive rates.” It is not guaranteed that they will charge such rates, but it is a possibility, and you do not want to take the risk. You will want a processor with an amazing reputation who knows how to navigate through the process of high risk merchant needs and who cares about your business.
Allied Wallet Can Help
At Allied Wallet, we have built our business around being a PCI-DSS Level 1 Compliance established internet payment service provider. Our goal is to be sure that all consumers and merchants conduct safe transactions. Thousands of merchants trust Allied Wallet because we offer the lowest rates, 24-hour customer service, and the most secure payment technology solutions.
High risk credit card processing may seem like an insurmountable object in your business ventures, but companies like Allied Wallet can help companies get started. After processing over a billion dollars globally in 164 currencies, we have the experience to back up our claims. Give us a call today to find out more!