Get your High-Risk Merchant Account for Instant Approval easy way out to all your business payments
Unless you’re starting a cash-only business, you should ensure that your customers can pay through your website. A merchant account is required for this. When you open one, you may discover that your business is high-risk. However, the sky is not falling; it simply means that the procedure for creating an account will not be standard.
In this article, we’ll look at what businesses are considered risky, as well as how to accept payments if your store is classified as high-risk.
What are the high-risk businesses?
Chargebacks and hacker attacks are more common in some industries than others. A travel agency, for example, receives more refunds than a stationery store. There are numerous reasons why a flight may be canceled or delayed, and the travel company should bear the brunt of the blame.
The issue is that we are unable to list all of the industries and business types that may be flagged as high risk. They are far too numerous. But we’ve compiled a list of the most common ones:
- Pharmaceuticals; Dating; Gaming;
- Antiques; Annual memberships;
- Software; Lodging/travel;
- Cars/car parts; Jewellery;
- Tobacco/Vaping; Warranties and the list go on and on.
Do we have any advantages of running a high-risk business?
If you are a high-risk merchant, you should go through the process of opening an account. The truth is that opening a regular merchant account has never been simple, and when it comes to high-risk account instant approval, things become even more complicated. A business owner should not only submit a slew of documents to the bank but also undergo additional scrutiny and oversight. The settlement period could last several weeks.
Another disadvantage of running a high-risk business is that you will almost always be rejected. For example, if a seller has too many chargebacks or a history of fraud, a bank may refuse to open an account.
Running a risky business is a difficult task. So, are there any advantages? Here are a few examples:
International distribution availability– You can enter a global market and thus exponentially grow your business. Sellers can provide their customers with a variety of currencies to choose from. They are also permitted to sell outside of their home country.
Better defense– If a merchant receives a large number of chargebacks, the payment system may terminate their relationship, which means the seller will no longer be able to accept Visa or MasterCard cards at their store. You don’t have to be concerned about exceeding a chargeback limit as a high-risk merchant. But that doesn’t mean you should disregard safety.
What about merchant accounts with low risk?
A low-risk merchant account is used by sellers who have a low chargeback ratio. Here are some more indicators that your business is not risky:
Your monthly money turnover does not exceed $20,000; your average ticket size does not exceed $50, and the number of returns is negligible.
You work in the United Kingdom, the United States, Europe, Australia, or another developed country; your industry is not at risk.
The characteristics listed above are not absolute. Every bank has its own set of criteria for determining how risky it is to provide you with services. They are highly dependent on the nature of your business, the volume of transactions, and other factors. You will be informed about them when you contact a financial institution.
What is a High-Risk Merchant Account?
Before we get into the high-risk merchant accounts, let’s define a traditional merchant account. It is a type of business account established at the acquiring bank.
Opening a merchant account has always been a difficult task. That comes with a lot of paperwork and a lot of money. To summarise, a business owner must:
- Have a legal entity identification number (LEI);
- Demonstrate your creditworthiness;
- Possess PCI DSS certification
- Provide all necessary documentation to a bank demonstrating the company’s finances, money turnover, and taxation (the documents vary from one bank to another).
A seller cannot access a merchant account in the same way that a regular customer can. Here’s why: when customers pay on the website, an acquiring bank collects and stores the funds. After paying bank fees, a merchant can deposit funds into their account.
All you need to know about High-Risk Merchant Account Instant Approval
A high-risk merchant account is one opened by a company that may cause problems for the acquiring bank. Your business could be perfectly legal and completely risk-free. However, if you frequently deal with chargebacks and returns, you will most likely be labeled as a high-risk merchant.
Because of credit card fraud, your company may be designated as high risk. Remember that security should always be a top priority, regardless of the status of your merchant account.
That is why PCI DSS certification is required for anyone who sells online. If your store has been subjected to a large number of fraudulent transactions, it will be classified as high risk.
As a seller, you go above and beyond to increase sales. However, the more transactions you process, the more likely it is that you will be hacked by black hats. It’s a red flag for merchant service providers that a non-standard solution is required.
The same holds for your average transaction value. Customers are likely to file chargebacks if the amount exceeds hundreds of dollars. Buyers become more demanding when prices are high. They desire superior product quality, and if they do not receive it, they demand a prompt refund. Banks don’t want to deal with your frequent refunds, so you’ll need to open a high-risk merchant account instant approval.
Amald specializes in placing high-risk businesses, relying on a network of third-party processors, and acquiring banks to get your account approved. High-risk merchants will have access to the majority of the same features as lower-risk merchants, such as mobile payment processing, eCommerce support, and chargeback prevention tools. Most importantly, we perform the additional work required to accept a high-risk account without charging you any application or account setup fees.
