Introduction:
Furthermore, your company will always have access to the most dependable services available in the market thanks to High Risk Pay’s experience and established connections with banks and other financial organizations. Chargeback management, credit card acceptance, fraud prevention, and ACH/eCheck processing are just a few of the beneficial features that our high-risk merchant account solutions provide to both new and established companies.
We work to establish ourselves as the go-to source for high-risk merchant accounts for companies in the United States by offering only the best, most competitive services. Handle your payments more quickly, securely, and affordably. Get your high-risk merchant account approved right now with us right now.
Services for High-Risk Merchants with Any Credit History
Even if you have poor credit, we can still open a high-risk merchant account for you. Unconvinced? Our average acceptance rate for high-risk merchant accounts is 99%, which is the highest in the sector. Get a merchant account with bad credit quickly with High Risk Pay. There are no setup or cancellation fees, and accounts are approved swiftly. Applying online is really simple. Learn more about our merchant accounts for people with bad credit here.
Merchant Account with a High Risk at Competitive Prices
How about costs? Higher taxes and restrictions may apply to a merchant account that is considered high-risk. Fees vary by supplier and are mostly determined by the particular requirements of your business. However, at High Risk Pay, we don’t think that clients should be penalized for doing business with a company that has a higher risk of fraud or charge-backs.
Fees for High Risk Pay are comparable to those of conventional card processors. As a business owner, you receive numerous methods to accept debit and credit cards for transactions in exchange. Serving your consumers and making transactions as easy as feasible will be enjoyable for you.
Furthermore, there are no startup or application fees associated with setting up a high-risk merchant account with High Risk Pay, unlike other providers that could charge up to a couple hundred dollars.
What is a high-risk merchant account, exactly?
Are you establishing an online store and wondering what a high-risk merchant account is? If that is the case, you may already be in a fairly unusual situation. Most business owners will never hear the term “high-risk merchant account,” as is well known. Unless their company has been identified as such, that is. When you first hear about it, it could seem like a fairly personal jab at your company or your entrepreneurial skills. We’re here to tell you that’s not the case, though. It is rare for a business to be classified as “high-risk” for personal reasons.
With every transaction, payment processing companies take on a certain amount of risk. When a merchant lacks the cash to refund a client for a disputed or fraudulent charge, the payment processor automatically takes on liability. Payment processors (and thus, merchant account providers) choose which companies to partner with in order to limit this responsibility. If they believe a particular vertical’s firms are too dangerous or naturally vulnerable to fraud and chargebacks, they won’t provide merchant services to them.
As a result, these high-risk companies are known as “high-risk merchants.” Any business that sells goods in a specialized market, whether online or in physical storefronts, might be considered a high-risk merchant.
Therefore, companies of this kind need high-risk merchant accounts. High Risk Pay is one merchant account provider that specializes in working with high-risk companies and offers merchant accounts made especially for this use. High-risk companies can still accept non-cash payments from clients using credit cards, ACH, and eChecks by using these merchant accounts.
How to Assess Whether My Company Is at High Risk
Each payment processor, bank, and account service provider define its own guidelines for detecting high-risk merchants. Your industry (certain verticals aren’t as secure or stable as others) and your financial profile (credit history, historical performance, etc.) are often the two main considerations to take into account.
Additionally, they might take into account how highly regulated a company’s sector is at the federal and state levels as well as how crowded its market is with comparable businesses. However, generally speaking, if the industry is more likely to experience fraud and chargebacks, that is the one major red flag that would cause payment processors to flag merchants as high-risk. Usually, this is enough to have them flee in the opposite direction.
Payment processors generally use the following criteria to assess if your company poses a high risk:
Fraud & Chargeback Rates: Banks and payment processors automatically classify businesses with a high chargeback or fraud rate as high-risk. Companies are typically regarded as high-risk if their chargeback ratio is greater than 1%. Chargebacks can happen for a variety of reasons, such as when clients forget they signed up or receive an invoice without their permission.
Types of Products and Services: Software, tickets, seasonal goods, and other products may indicate a company with more atypical or irregular revenue. This is a serious red signal and an indication of financial instability, according to payment processors.
Reputational Risk: Businesses handling private client data run the risk of experiencing negative effects on their reputation. This covers businesses in the IT and adult industries.
Recurring Payments: Payment processors may receive a warning signal from specific business models that have a high rate of chargebacks or fraud. Recurring or subscription-based providers are a typical example, as they are more vulnerable to chargebacks, identity theft, and account takeovers.
Monthly Sales Volumes or Transaction Value: If a company regularly accepts high-value transactions, financial institutions may view it as high-risk. B2B businesses are primarily affected by this element.
Credit Score: People or companies with low credit scores are less likely to receive loans from banks. Because of this, your company can be classified as high-risk if your personal credit score is low.
In other words, if a merchant uses recurring payments, has a high sales volume, a low credit score, or a high fraud rate, most institutions will view them as high-risk.
Having problems figuring out if your company is deemed high-risk? The following queries will be useful to you:
Can charge-backs affect your company?
Have you previously had unstable finances (bad credit, recent bankruptcy, etc.)?
Do you have a high average ticket or sales volume.
Most payment processors and financial institutions might view your company as high-risk if you said “yes” to any of the aforementioned questions.
FAQs:
What about Square, Stripe, and PayPal? Are high-risk merchant accounts accepted by them?
Regretfully, there isn’t a single online payment processor that accepts high-risk companies. For instance, to name a few, merchant accounts for businesses engaged in gambling, adult entertainment, or central business districts are prohibited by all three of the aforementioned payment processors. In this sense, it makes sense that their policies are restricted.
Conclusion:
Are you trying to find an alternative to Stripe, Square, or PayPal? With High Risk Pay, you’re covered. High Risk Pay provides payment gateway solutions and high-risk merchant accounts to companies across all industries. We are nondiscriminatory. Starting at 1.79%, we provide high-risk merchants with fair and transparent pricing. Additionally, there will never be an application or setup fee. Start now.
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