Today we’re going to talk about why Your business could be labeled high risk.
A merchant account can be deemed “High risk” for a number of reasons. One of the biggest reasons is if you are in an industry that consistently has a high number of chargebacks or fraud. An example of this is 24/7 tech support, travel agencies, and credit repair.
Another example of a high risk merchant would be an industry that straddles the line of legality.For example, drug paraphernalia or any sort of gambling. Sometimes, a business is deemed high risk because their marketing and sales strategies are questionable and don’t resemble those of a reliable business. Bad credit can also mark you as a high risk merchant.
If you are looking for merchant services and find that you are a high risk merchant, there are still ways for you to process payments. Not all providers qualify the same merchants as high risk. Every provider has different guidelines and it is those guidelines that will determine if you will get approved. In addition, there are some providers who specialize in working with high risk merchants. So even if you are a high risk merchant, you still have options.
However, you should be prepared to pay higher rates with whichever provider you go with. The provider is taking on the risk of your business and you will be charged accordingly. This doesn’t mean that you are completely helpless though. You should still check your agreement for outrageous fees and, as always, ensure there are no contracts or termination fees.
Here at Fattmerchant, we are unable to board high risk merchant accounts. However, we have a partner that can and we are happy to connect the with anyone we can not work with. If you have any additional questions regarding high risk merchant accounts, feel free to leave a comment below or reach out to one of our Payment Consultants at 1-855-550-3288.