Your Options for Finding High Risk Merchant Account Providers
Trying to find high risk merchant account providers for your business can be hard and defining your business as one can be even more difficult.
If you have been turned down by several credit card processors already, that is a sign that your business may be considered high risk. Fortunately, not all is lost – the pros at Allied Wallet have the information and knowledge to help you through this worthwhile process.
High Risk Credit Card Processing
One important point to consider is that while one provider may think that your company is high risk, another may not. Everything depends on their risk management, or underwriting, guidelines. If these guidelines are strict, it is unlikely you will get approved; if the underwriting guidelines are more relaxed, then you will get a merchant account. Similarly, if you apply to high risk merchant account providers, then you are more likely to get approved. It is important to remember that some providers do not specialize in high risk accounts, yet still have more relaxed underwriting guidelines.
Rates For High Risk Merchants
Rates are, to be honest, not great for high risk merchants. The terms are generally worse, and the rates are higher. Make sure not to cut corners when reading and reviewing your contract. There are certainly some ethical high risk merchant account providers, but there are also some not-so-reputable high risk merchant account providers.
Additional Issues to Keep In Mind
Check for termination fees and incidentals. Consider if you want them to give you a rolling reserve. Ask how much it will cost you and how long you will be under it. Most high risk processors want some kind of reserve as a liability if you go out of business and get a multitude of chargebacks or commit fraud.
Are You Considered High Risk?
It depends on whether or not you will be considered high risk and there are many reasons why a provider could consider you as such. Your industry could be known as being high risk with many chargebacks or fraud associated with it. Low credit also contributes to being high risk.
Other reasons may include if you are an offshore business, what you are selling, your sales, and marketing tactics.
So, You’re High Risk. What Are Your Options?
Do your research prior to committing to one provider. First, find out what reputable companies accept high risk businesses, and what their ratings and reviews are. Then call and get quotes. It may seem intimidating at first, but by taking the proper precautions, you are sure to find a processor that is right for you and your business.