If your online business has a unique vertical, you may need a High Risk Merchant Account. Companies such as Stripe and Square have very strict regulations for businesses in high-risk industries. Those in CBD, adult stores, and vape are examples of high-risk businesses. High-risk merchant accounts are necessary if your business needs to accept credit cards from customers. High-risk merchants have a lot of unique requirements, including extensive fraud reporting and a strong financial background. If you would like to learn more about this, please check out High Risk Merchant Account LLC
The best way to choose a high-risk merchant account is to do a thorough comparison of the services offered by different companies. Compare the features, pricing, and contract terms of several high-risk merchant account providers and make your decision. High-risk merchants should also research their options before signing a contract. High-risk merchants should avoid signing contracts that do not provide adequate protection against fraudulent charges. If you have bad credit, you should use a card payment gateway with anti-fraud measures to protect your customer data.
A high-risk merchant account provider will negotiate a rate with several different processors, so the fees charged will vary. While fees may be higher than the standard rates charged by conventional merchant account providers, the service will typically offer a rolling reserve account where the company holds up to 50% of monthly volume after a merchant account is closed. Some high-risk merchant account providers are unwilling to accept month-to-month contracts and may require a large deposit to start.
A High-risk merchant account will require a higher processing rate and a higher processing fee. Some high-risk merchant accounts may require a probationary period, which should be a factor in your ROI analysis. International credit card payments are considered high-risk because they are more likely to result in chargebacks and fraud. However, a high-risk merchant account will often allow you to accept international credit cards, which a traditional merchant account may not allow.
Whether you need a High-Risk Merchant Account depends on your business model and your needs. The higher the risk level, the higher the fees. Some high-risk merchant accounts require a rolling reserve, while others require you to hold a fixed amount of funds for up to 18 months. The processing fee for a high-risk merchant account will vary, but it’s worth it for the extra security. This service will give you peace of mind and ease the transition from a traditional merchant account to a high-risk merchant account.
Whether you need a High-Risk Merchant Account for your recurring billing or membership business, you can benefit from a tailored solution from a high-risk merchant account provider. The application process is simple and should take no longer than 10 minutes. Approval time is between two and three business days. You can expect some additional information, and it may add an additional two days to the process. You can find a merchant account provider with the best possible rates and conditions by doing some research.
While getting a high-risk merchant account isn’t the end of the world, it is important to understand the terms of your payment processor before you apply. Often, a high-risk merchant account is forced upon you by a chargeback situation. It’s therefore important to stay on top of your chargeback rates. Keep track of your charges and your terms and conditions with your payment processor. If you get chargebacks on a regular basis, you could face a higher processing fee.