High-Risk Merchant Account: It's Meaning and Importance


If you are running an online business with a high risk of chargebacks and want to process credit card transactions smoothly, then you need a high-risk merchant account. But small business owners will never know what term is this until their business has been considered as such. If your business is identified as at high risk, then it will make a huge impact on the cost of accepting debit and credit card payments. You have to find an acquiring bank that will support your business to open this merchant account. And to increase your chance of getting an account, contact a reliable payment service provider.

Meaning of High-Risk Merchant Account

A high-risk merchant account is a debit and credit card payment processing account for businesses viewed as at high risk by banks. As high-risk businesses are more inclined to chargebacks, so you have to pay the higher fees for merchant services. If your business shows a high potential of chargebacks, or your business history shows so many chargebacks and refunds, then the bank can put a rolling reserve on your account. This is a kind of insurance because this money will cover the possibility of fraud and chargeback.

Key Points

  • High-risk industries are those industries which are inclined to fraudulent sales
  • It is used by high-risk businesses to process credit and debit transactions
  • The more high-risk business the more fees they have to pay for merchant services

Importance of High-Risk Merchant Account

A merchant account is necessary for every business to receive payments and the businesses which are facing chargebacks and frauds in history their merchant account is considered a high-risk merchant account. The companies whose sales are over $20,000 per month, average credit card sales of $500, or businesses that have a bad credit score history is also considered at high risk and needs a merchant account. Don't worry if your business comes at high risk there are so many excellent merchant account providers available who will charge you less.

Industries which need high-risk account

  • Collection Agencies
  • Bankruptcy Lawyers
  • Vape Shops
  • Financial Consultations
  • Online Gaming
  • Gambling
  • Adult Shops
  • ISP Services
  • SEO Services

Conclusion

Your high-risk merchant account fees and features depend on the provider. If you choose the best provider for your business, then you can save yourself from high fees and charges.

Location: Elk Grove, CA, USA

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