High Risk Merchant Account & Payment Gateway Solutions

A former web hosting company, HMS is ideally suited for eCommerce merchants. PaymentCloud enjoys a great online reputation, with both our readers and merchants on other sites giving the company a positive endorsement. Low-risk providers such as Dharma Merchant Servicesand Stripe Payments routinely refer clients who’ve been declined for an account due to their business’s high-risk nature to PaymentCloud. Recommendations from such highly regarded providers carry a lot of weight with us, and we give PaymentCloud a strong endorsement.

If possible, set up a credit card processing account only when you have good credit, substantial cash reserves and a fraud prevention system in place. Credit card processing service providers each have their own definitions of what makes a business or industry high risk, but there are generally some commonalities. According to Douglas Keller, a writer forFinance Fox, there are several industries with different credit card processing needs that are likely subject to a high-risk consideration.

We make sure to know your business inside and out, so that we can help predict and reduce your risk before it occurs. Certain businesses and industries can get instant approval on their high risk merchant account. In most cases however, banks will want to review your processing history and sales volume on a case-by-case basis. If you don’t qualify for instant approval, PayKings will work to get your application processed fast.

  • If the chargeback threshold—usually around 1%—is crossed, the acquirer may abruptly terminate the merchant account.
  • While traditional merchant accounts usually assess a lower chargeback fee than high-risk credit card processing, the merchant/processor relationship can be tenuous.
  • Acquiring banks constantly monitor the chargeback-to-transaction ratio of their merchants.
  • Chargebacks are the fees credit card providers demand businesses pay to cover the losses from disputed or fraudulent transactions.

PaynetSecure specializes in high volume payment processing accounts for high risk merchants. All US and international high merchants are welcome to apply. Fees are naturally higher for high-risk ventures, and a specialized payment processor will usually be required. (For a thorough explanation of high-risk merchant accounts, check our knowledge base article.) Generally, processors avoid these “dangerous” merchants because of the perceived risks. In order to accept credit card payments, a business must first obtain a merchant account with an acquiring bank. The cost for this service can vary dramatically based on multiple factors, most notably the type of business, the way transactions are performed, and the historic risk of loss.

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Be aware that your rates and fees will probably be higher as a high-risk merchant. The company providers 24/7 customer service via telephone and email and has an excellent reputation in this area.

All client information is kept secure and confidential and we streamline the application process, making it simple and easy. Our high-risk merchant account provider can get credit card transactions processed online in no time. We like to give all businesses a chance, even those with less than perfect credit or past bankruptcies. Additionally, we work with startups with little or no credit history, companies that were hit with chargebacks and returns, and merchants that had accounts terminated by banks. Accepting payments over the phone, mail or typed in on your laptop is easy with our virtual terminal merchant accounts. Just log in to your virtual terminal, and type in the customer’s credit card. Reducing credit card processing fees with your current merchant account provider.

Never sign up with a company that is not honest and upfront about the fees you have to pay. Some of the providers use relaxed criteria when determining the eligibility of a business to have a merchant account with them but others have extremely strict guidelines. An important thing you need to understand is that labeling of a business as high risk by merchant service providers has nothing to do with your business being a high-risk for customers or you. It simply means that there is higher probability of charge backs, frauds and other such issues happening with businesses belonging to the high risk category. From preventing chargebacks to transaction allocation and management, our cutting-edge risk prevention tools will help keep your high-risk merchant accounts healthy and processing for the long term.

Payment Processing Solutions

If you operate in one of the industries listed below, you may be deemed a risky enterprise even if your company has not experienced a significant amount of credit card fraud. PCS has experience helping businesses in all of these industries — and we can help you as well. One-on-one consultations with a PCS payment processing https://www.bookstime.com/articles/credit-risk expert to match your business with the best high-risk merchant account provider. eMerchantbroker is a well known ISO and Payfac in the high risk processing sector. Working primarily with ecommerce merchants, EMB specializes in getting hard to place high risk merchant accounts approved at the most competitive rates.

Don’t just take it from us; our ratings and customer reviews say a lot about our level of service. We are proud of our outstanding reputation and can’t wait to show you what you’ve been missing! We respect high risk merchant accounts and give 110% effort to get the best rates on the market. In modern times it is necessary to accept digital payments to have a successful business. For the standard business is already difficult to weed out the good from the bad merchant services companies. When it comes to high risk business types it is much harder. To start high risk companies do not get as good of rates as standard business types, period.

high risk credit card processing

Intangible factors, such as better customer service and support, can make a slightly more expensive provider a better choice in the long run. Lastly, unless you have a long and stable processing history, most high-risk merchant accounts will require a rolling reserve. Just remember that your Credit Risk reserve will decrease over time as you build up a processing history. Are there any special features you should look for in choosing a payment gateway if you’re in a high-risk industry? Most gateways today offer a solid set of security features, including tokenization and encryption.

5 How To Choose Your High Risk Merchant Account

The company’s reputation for shady sales practices and poor customer service make them an inadequate choice for most businesses, including those in the high-risk category. If you’re having trouble getting approved for a merchant account with our recommended providers, however, the company might be worth checking out as a last resort. Los Angeles-based eMerchant Broker is one of the more inclusive high-risk specialists in the industry, able to place many high-risk businesses that might otherwise not get approved for an account at all. However, the company’s higher risk tolerance comes at a price.

high risk credit card processing

If your business falls into one of the categories of high-risk activities that it can accommodate, HMS is an excellent choice for a merchant account provider. Rates and fees aren’t as low as most low-risk providers offer, but they will be fair and affordable. There are a wide variety of reasons a business can be classified in this way and not all of them are bad. By falling into any one of these categories, your business will automatically be deemed high risk by merchant account providers across the country. Many small business owners only hear the term “high risk merchant accounts” when they learn they have been deemed a credit risk by their bank. This revelation usually feels a bit mysterious at first and, in some cases, you may feel as though you and/or your business have been judged unfairly. From the perspective of your bank/merchant provider, “high-risk” means your business is exposed to risk for chargebacks and has nothing to do with the performance of your business or what it has done.

Why You Shouldn’t Choose A Payment Service Provider For High

The rolling reserve provides protection to the bank in case of excessive chargebacks and refund incidences. High-risk credit card processing accounts may also be offered to merchants that have a high monthly sales volume and an average transaction rate of $500 or more.

Ultimately, whether a business or industry is deemed high risk is at the discretion of the credit card processing service provider. High-risk merchant accounts are those held by businesses that have an extensive history of refunds and chargebacks, according to SecurionPay. Because your business poses a higher risk of liability to financial institutions, you pay higher fees for services, and you may also be subject to a rolling reserve. Using various back-end processors, SMB Global can approve a merchant account for almost any high-risk business.

When your business does not conform to the credit policies of a tier one, traditional bank, you must then turn to high risk merchant processors. But here at PaymentCloud, we strive to make you feel welcome and get you set up with a high risk payment gateway that can support your business type. We are seasoned pros in these verticals, having dealt with every situation possible with high risk businesses. retained earnings In your pursuit to find high risk payment processors, you’ll come across a number of different services and options. In order to find the best processor, you’ll want to be familiar with your business needs and capabilities. For example, you may need one who is willing to onboard an Adult business that was dropped by a major merchant, or a CBD company who is trying to find a sustainable solution.

Its processing rates and fees are quite high, even in comparison to other high-risk providers. At the same time, it offers high-quality customer support and has a reputation for honest sales practices, so you should definitely consider getting a quote from the company. Just about everyone in business these days needs to be able to accept credit cards. Finding a reputable merchant account provider to process those credit card transactions can be a pretty daunting challenge for any business. We have dealt with a variety of deterrents, ranging from business type and credit score to high chargebacks, that can place your business in the high risk processing category. Our multitude of banking relationships, merchant services fraud tools, and chargeback management integrations are in place to mitigate these risks. For bad credit, we submit through our banks that will not immediately turn you down based on score alone.

Therefore, make sure the processor has a minimum rolling reserve in case your business does not have a history of regular chargebacks. As mentioned in the beginning, there are many predatory businesses that specialize in dealing with only high-risk businesses, but they offer onerous terms and conditions. You should stay away from such merchant providers as these providers don’t look at you as a partner. They just want to fleece as much money as possible out of their customers, which means you, through various means. Companies with a high rate of chargebacks, fraud, canceled transactions and/or refunds will have great difficulty finding or retaining a credit card processor.

high risk credit card processing

If one or more of them applies to you or your business, you may find many credit card processors consider your business high risk and schedule your fees and other requirements accordingly. It has flat rates, with no monthly processing Credit Risk minimum or lengthy contract, and you only pay for the processing you use. You can accept credit, debit and PayPal payments from customers online and in person. Helcimis the best credit card processor for small businesses.

The nature of the adult toy business means customers want a high level of privacy, and this sometimes crosses over into fraudulent behavior. Between the age verification requirements and the higher risk of fraud, adult novelty stores are considered high-risk, so be prepared if you open an online adult toy shop. A high-risk merchant is one who sells a type of product associated with either strong regulations or a higher-than-usual possibility for fraudulent purchases and chargebacks. Products that require age checks or have different legal status across state lines are often considered high-risk. Governmental regulations on some industries also lead to a high-risk designation, because of the frequency of eCommerce merchants that don’t meet the required regulations. HighRiskPay.com is one of the leading High Risk Merchant Account providers of credit card processing & payment gateways to businesses with bad credit. Pawnshops merchant accounts and payment processing solutions are scarce, due to the high risk of fraud and stolen merchandise, despite the strong reputation that most U.S. pawnbrokers hold.

Applying For Your High Risk Merchant Account

Stripeis the best online credit card processor because it’s very versatile. There’s no extra charge for its integrations, prebuilt forms and developer tools; for its basic payment services, all you pay are transaction fees. Worldpay, known as Vantiv before last year’s merger, is one of the world’s biggest credit card processing companies, processing more than 40 billion transactions worth over $1.5 trillion annually. It recently announced a merger with FIS and will be known by that name once the deal closes. It’s also our pick as the best direct processor for small businesses. It works with businesses of all sizes, provides a full range of processing services, has more than 1,000 software integrations, and offers competitive rates and favorable terms to small businesses. When choosing a credit card processor, it can be hard to tell which is best for a high-risk merchant.

What is high risk credit processing?

What is a high-risk merchant account? A high-risk merchant account is a payment processing account for businesses considered to be of high risk to the banks. As high-risk businesses are more prone to chargebacks, they come with the need for paying higher fees for merchant services.

However, BankCard USA considers merchants from all industries on an individual basis. Accepting credit cards doesn’t have to be a profit-eating hassle when you find the right provider. At the end of the day, BankCard Services is here to help businesses like contra asset account yours grow. BankCard Services can help high risk businesses get approved for merchant accounts when many others cannot. We work with you to make sure you stay approved, by matching you with services that are willing to work with you as a high risk business.

Why are credit card processing fees so high?

The higher security risk you pose as a merchant, the higher your credit card processing fees will be. That’s because the rates set by card brands like Visa and MasterCard are higher when the cards are keyed in based on fraud risk, he explained.

The better you satisfy PCI standards, the better protection you have against excessive chargebacks and hackers. Which is processing credit cards with a high risk merchant account. If you run a business that is likely to be deemed high-risk, it does not mean that ledger account you have lost the ability to accept credit cards or debit cards for your business. So, get in touch with High Risk Solutions today and let us help you get approved for a high risk merchant account allowing you to accept credit and debit cards for your business.

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