Getting a merchant account for your business may be easy for a Low or Medium-Risk Merchant. However, a High-Risk Merchant Account is relatively difficult to obtain. What are the factors that make a business High-Risk?
Is there an outlined guideline for deciding a business’s risk factor? Can a company lower the risk factor? These are some of the questions worth your time. Let’s just get into it and address each of the questions independently. You will get a more precise look at your business and quickly reach the Service providers or banks.
What are the defining factors of a High-Risk Merchant?
Financial Institutions use various parameters for defining the risk factor. Therefore, if you need a set guideline for classifying a business, you won’t find one. However, these are some of the general pointers for a high-risk business:
- Excessive history of chargebacks
- Multiple Frauds
- Huge Value Payments
- High returns and refunds
- Big Monthly sales volume
- Industry type
These are the most basic categorisation of a business. However, it may change at the sole discretion of a financial institution. A ban may see your business much differently than a Merchant Service Provider.
Is there an outlined guideline for deciding a business’s risk factor?
There are no set guidelines for a financial institution to call a business high-risk. It is all about the Service Provider’s discretion that decides a business’s high-risk factor.
Many service providers avoid these industries because of the chargebacks, frauds, scams, and offshore factors. It causes a bank or institution money and reputation. Thus, they tend to keep away from these industries.
Some of the businesses are pre-categorised as high-risk industries. Some of them are;
- Adult toys/ Channels/Merchandise
- CBD
- eCommerce
- Foreign Exchange
- Firearms
- IPTV
- Online Betting
- Online Casino
- Online Gaming; etc.
Due to the volatility of the consumer base of these industries, it can cause a problem to the longevity of these industries. Clearly, there is no way a consumer using these types of services will categorise it into high-risk. However, there is a financial risk present constantly around thede industries. Thus, the factor crawls in.
Can a Company Lower the Risk Factor with a High-Risk Merchant Account?
A high-risk business can steadily reduce the risk for the company to comply with the Merchant Service Providers. However, it is quite evident that a bank won’t provide a High-Risk Merchant Account to these businesses.
To lower the risk, a Merchant needs to:
1. Get a High-Risk Merchant Account for your business
Getting the merchant account will be a huge step forward. Online payments make the majority of a business. Therefore, getting a merchant account to accept online payments kickstarts your business.
Moreover, a Merchant Account forms the base of the business’s online presence. Therefore, choose a merchant account provider with expertise in the high-risk industry.
2. Top-Notch Security
Security is the base of a business in the online world. Therefore, keep your website SSL Certified. It keeps the base security standards up. Next is the PCI Compliance for the Merchant Account. The PCI DSS Keeps the sensitive data of the consumers encrypted through the payment processing channel.
Moreover, if you were previously using a Payment Gateway on your website, you should have a 3D secure payment processing channel. It keeps the 100% authentication for feasible consumers.
3. Low Chargebacks
Providing better after-sales services to the consumers significantly lowers the chargeback ratio for your business. It depletes the high-risk factor of a company and offers better opportunities for a business.
Low Chargeback contributes to a business’s overall image and establishes a better brand name. A firm ground among the consumers ensures a better promise to the service providers to your business.
These are the three ways you can lower the High-Risk Factor of a business. However, there are multiple benefits a High-Risk Merchant Account provides to a Merchant.
The Benefits of a High Risk Merchant Account
A High-Risk Merchant Account Provider may promise you star and moon but provide you dust and stones. Thus, here are the benefits of choosing Amald’s expert High-Risk Merchant Solution for your business.
1. Reduces the Risk of Account Termination
Amald has a higher risk appetite than other Merchant Service Providers. Therefore, you have a reduced account termination chance. It ensures smooth online payments and easy settlements to your specified account.
Moreover, you get a higher number of chargeback acceptance and an increased volume of payments. It allows you to work on your business independently.
2. Global Reach
A High-Risk Merchant Account allows you to accept online payments. Furthermore, Amald offers a merchant account that accepts multiple currencies and languages. It will allow you to reach a global audience. As you can provide the convenience to the consumers to pay in their local currencies, it provides a better payment experience.
3. Flexible Payment Options
A Merchant Account from Amald allows multiple modes of payment. Flexibility provides better convenience to the consumers. It allows you to reach an even farther audience with your business.
Multiple modes of payment include Card Payments, eWallets, Bank Transfers, Cryptocurrencies, etc. are some of the modes of payment that allows ease of payment to the consumers.
4. Fraud Prevention and Chargeback Protection
Last but not least is the fraud prevention tools and Chargeback Protection services. These two are the most important parts of a high-risk business and plays a vital role in a high-risk business. Therefore, Amald offers tools and protection for your business.
Anti-Fraud systems keep your business fraud and scam free. On the other hand, Chargeback protection keeps covers the entire cost of the chargebacks without your intervention.
Conclusion
In conclusion, a high-risk merchant account is a valuable part of your business. If you need to accept online payments and keep your business free of termination, Amald is a great support to your online business. It will allow you to work independently in the online environment.
Moreover, Amald has Complete High Risk Merchant Account Solutions for your business. Therefore, you can get in touch with our expert team to get complete merchant assistance. Our professional team will help you to set up your merchant account instantly. Moreover, we have a huge network of banks for you to get your merchant account approval.
Lastly, we have 24 x 7 support for all the merchants to tackle any online payment acceptance issue quickly.
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