Are you excited to open your high-risk merchant account? Well, this is the right destination for you.
Today, it is only possible for any online merchant to run their online businesses successfully and gain profit by accepting credit cards or debit cards.
However, you require a payment processor before you can accept electronic payments. The payment processor is a point of contact for banks, credit card networks, and merchants. Numerous processors prefer to only work with merchants they consider “Safe” or “Low-risk” ventures. There won’t be many possible processors available to businesses deemed “high-risk.”
Here, in this blog, we will discuss the characteristic of the high-risk merchant account. So, let’s start.
What Do High-risk Businesses Mean?
A high-risk business means payment processing services see your enterprises with high-risk. Each provider has a different level of criteria for high-risk enterprises but in general, here is why your business is high-risk –
- High-transaction volumes: If a business processes many transactions or its average transaction rate is high, it might be considered high-risk. A merchant could be categorized as high-risk if they process more than $20,000 in monthly payments or if their typical transaction is $500 or higher.
- Accept multi-currency: If the merchant accepts the multi-currency from international customers, it will be a high-risk business. It is possible to classify a merchant as high-risk if they sell to customers abroad in nations with a high fraud risk rating.
- New Merchant: Simply because they don’t have a history of processing transactions, a merchant may be viewed as high-risk if they have never processed payments or have only a brief history of doing so.
- High-risk Industry: Even if a merchant has a perfect track record, they may still be given the high-risk designation because the sector they are in is thought to have a higher chance of fraud, refunds, or chargebacks. For instance – Subscription-based businesses are classified as high risk because many customers sign up for a trial and then forget to discontinue their payments. When they review their statements and discover the overlooked items, they frequently charge the payment back.
- Low Credit Score: If the merchant has a low or bad credit score, then they classify as high-risk.
What is the Characteristic of a High-risk Merchant Account?
Running a high-risk business is difficult for many merchants and comes with many constraints. However, it may be advantageous for many merchants, so let’s consider the character of the high-risk merchant account.
High-chargeback Protections –
As you run a high-risk business, you must maintain a chargeback rate. Chargeback protection is important for any online business because it helps merchants maintain their merchant accounts. For instance – If the merchant exceeds the chargeback limit, then there is a possibility that their merchant account will get terminated. The high-risk processor makes maintaining and operating the high-risk merchant account easy.
Global Coverage –
With a high-risk merchant account, you can hassle-free expand your business in the global market and earn more and more profit. High-risk merchant accounts can accept multi-currency from worldwide. It is exactly the reverse of the low-risk merchant account. A low-risk merchant account has many restrictions and is only for domestic transactions.
Expansion of Businesses –
A low-risk merchant account does not allow for the sale of a wide range of goods and services, while a high-risk merchant account does. It helps you to improve your prospects of selling your items and making more money. Additionally, there may be many opportunities for long-term promotion. While growing your business, you might make a lot of money.
Flexibility and Customization –
Furthermore, a high-risk account provides more payment options than standard merchant accounts. Low-risk merchant accounts do not have access to such flexible payment choices. High-risk enterprises may simultaneously accept recurring payments and offer a wider choice of goods and services. In conclusion, a high-risk merchant might process more payments and receive more of them each month.
Delay in Processing is Reduced –
In addition to these benefits, you also get quicker processing times and fewer obstacles to accessing your assets. With the least amount of anxiety, it might be possible for you to receive your money as soon as possible.
Possibility of Account Termination is Low –
High-risk merchant accounts come with chargeback protection tools that help merchants maintain their chargeback rates. If the chargeback rate exceeds, it will not terminate your account. Instead of terminating your account, it will keep an eye on the number of chargebacks received by the merchants.
Futuristic Security Tools with Fraud Protections Tools –
Nowadays, every merchant service provider has some degree of security and fraud prevention. Also, high-risk payment processors take greater security precautions since they anticipate more fraud in their transactions. Customers may shop with greater assurance because of the improved level of monitoring that protects the cardholder, the merchant, and the payment processor.
Merchant Underwriting Procedure –
To accept the card payment from the customer, the merchant ought to need a payment processor and merchant account. High-risk business merchants must complete the underwriting process to obtain the high-risk merchant account.
This strategy makes it less likely that the merchant and payment processor will make errors. Even though companies undergo the same screening process, high-risk merchant accounts receive greater attention. Controlling chargebacks and refunds is an important part of this strategy since it helps to establish whether the merchant can satisfy their professional and financial obligations to keep their business viable.
How to Obtain a High-risk Merchant Account?
The business owner must prepare the legal and financial paperwork to obtain a merchant account. After reviewing your application, your payment service provider will decide whether you are high-risk or low-risk.
If your business is high-risk, look for a payment processor that best matches your needs. One of the most popular and leading merchant account providers is PayCly.
PayCly offers services to all types of businesses, especially high-risk businesses such as forex, adult, IPTV, etc. With PayCly, the merchant can get a high-risk payment gateway, high-risk merchant account, and high-risk credit card processing.
For example – If you are running a forex business, then PayCly offers you the forex trading merchant account, and forex payment gateway for your businesses.
The merchant must fill out the online application form, arrange all the documents, and wait for the response. In most cases, with all the proper documents, we, as “PayCly,” approve the merchant account within three to five working days.
You can also contact the expert team to learn more about our process.
Final Thoughts –
At PayCly, we understand the importance of your high-risk businesses, so we offer you the best possible solutions. We approve your merchant account quickly with all the proper documents because we maintain healthy and professional relations with many acquiring banks and financial service providers worldwide.
We are confident that you are completely safe with us because we provide industry-leading credit card processing and anti-chargeback solutions. With us, you can get the best fit for your business.