Everything You Need To Know About Getting A High-Risk Merchant Account

 

Introduction

When businesses are looking for a merchant account, they often wonder if they will be approved for a high-risk merchant account. The answer to this question is not always simple, as there are a number of factors that contribute to whether or not a business will be classified as high-risk.

Some of the most common reasons why a business may be classified as high-risk include:

• The business is in an industry that is known for high chargeback rates and fraud
• The business is in an industry that is considered to be high-risk by banks and credit card processors
• The business is located in a country that is considered to be a high risk
• The business is new and has no credit history
• The nature of business, etc.

If you are a business owner who is looking for a high-risk merchant account, then it is important to understand the factors that contribute to a business being classified as high-risk. Keep reading to learn everything you need to know about getting a high-risk merchant account!

What is a high-risk merchant account?

A high-risk merchant account is an account that allows businesses to accept payments from customers who have a very high credit risk. High-risk merchant accounts typically charge higher fees and require additional underwriting processes in order to protect the merchant processing company from potential fraud and chargebacks. When businesses are considering a high-risk merchant account, they should be aware that these accounts come with additional risks and costs. Businesses must weigh the costs and benefits of high-risk merchant accounts before deciding if they are the right choice for their business.

Why do some businesses need a high-risk merchant account?

Examples of industries that may require a high-risk payment gateway include the adult entertainment industry, online gambling, online dating services, e-cigarettes, and Forex trading, among others. Businesses may also be classified as high risk because they have a high chargeback rate or because they are relatively new and have no credit history. In these cases, businesses may be able to obtain a high-risk merchant account in order to help protect the merchant from potential fraud and chargebacks.

How to get a high-risk merchant account?

If you are in need of a high-risk merchant account, then the first step is to find the right company that can provide the service.  Once you have identified the right company, it is important to understand the application process. Companies often require prospective customers to fill out an application that includes personal and business information. Companies may also require additional documents and information to ensure that the business is legitimate and is not at risk of fraud or chargebacks. Once you have submitted your application, it is important to be patient as the approval process can take several weeks. Companies will often review the application and request additional information or documents before approving the application and setting up the high-risk merchant account.

What are the benefits of having a high-risk merchant account?

High-risk merchant accounts allow businesses to accept payments from customers that may otherwise be difficult or impossible to accept due to their high-risk profile. Additionally, high-risk merchant accounts may offer businesses the opportunity to offer additional payment options, such as ACH or virtual cards, which may help to increase sales and customer satisfaction.

In addition to increased payment options, businesses may also benefit from the added protection that high-risk payment processing provides. Companies that offer high-risk merchant accounts typically have additional security measures and fraud prevention protocols in place to help protect the merchant processing company and the customers.

Are there any downsides to having a high-risk merchant account?

As with any financial service, there are a few downsides to having a high-risk payment gateway. Companies that offer high-risk merchant accounts often charge higher processing fees in order to cover the additional risks associated with high-risk businesses.

Conclusion

Getting a high-risk payment gateway can be a great way for businesses. High-risk merchant accounts allow businesses to accept payments from customers that may otherwise be difficult or impossible to accept. Which can help to increase sales and customer satisfaction? Additionally, high-risk merchant accounts provide businesses with additional protection from potential fraud and chargebacks. After comprehensive research, we conclude that these 5 PSPs (Skrill, PayPal, WebPays, Worldpay, and 2checkout) are the best for high-risk merchant accounts in Europe. We suggest you choose any of them, but WebPays is the fastest emerging PSP with hundreds of features specially created to help grow the merchant.