As an entrepreneur looking to accept credit card payments, you have likely come across the term “high risk merchant account.” For businesses engaged in industries like e-cigarettes, tech support, online gaming, and more, a standard merchant account may be difficult to obtain. That is where a high risk merchant account comes in. If you have been turned down by traditional payment processors, do not lose hope. Highriskpay.com specializes in high risk merchant accounts and payment processing solutions for businesses of all types. They have over 15 years of experience helping merchants in high risk industries get approved for credit card processing.
What Is a High Risk Merchant Account?
A high risk merchant account is a type of payment processing account for businesses considered “high risk” by banks and credit card companies. These include industries like online gambling, adult entertainment, cryptocurrency, and CBD oil.
Because these businesses are riskier, the fees for a high risk merchant account are higher. The account provider also places more restrictions and requires closer monitoring. The main reasons these accounts are considered high risk are:
- Higher Chargeback Rates: Customers are more likely to dispute charges, costing the banks money.
- Increased Possibility of Fraud: Scammers frequently target these industries, so more fraud prevention tools and screening are needed.
- Damage to Reputation: Banks want to avoid associating with certain controversial business types to protect their brand image.
To obtain a high risk merchant account, you’ll need to provide detailed business information to prove your legitimacy. You should expect to pay higher application fees, monthly fees, and per-transaction fees compared to a standard account. Ongoing account monitoring, quarterly reviews, and random audits are also common.
Using a high risk payment processor that specializes in these accounts can help streamline the application process and potentially lower rates. They have more experience underwriting and managing high risk businesses. Some top high risk processors are Durango Merchant Services, Payline Data, and Instabill.
If you operate a business in a high risk industry, a high risk merchant account, while more expensive, may be your only option to accept credit cards. With the right account provider, you can gain access to payment processing services to help grow your company.
Benefits of Getting a High Risk Merchant Account at highriskpay.com
At highriskpay.com, you gain significant benefits by obtaining a high risk merchant account for your business.
Fast Approval and Boarding
highriskpay.com specializes in high risk industries, so they understand your business needs. They can approve and board your account within 1-2 business days so you can start accepting payments right away.
Competitive Rates
highriskpay.com offers some of the most competitive rates for high risk merchant accounts. They have partnerships with many major credit card processors to provide low rates for Visa, MasterCard, American Express and Discover.
High Risk Expertise
The team at highriskpay.com has years of experience working with high risk and offshore businesses. They stay up-to-date with regulations in different industries and locations to ensure your account remains compliant. They provide guidance on how to minimize risk and chargebacks.
Robust Features
A high risk merchant account from highriskpay.com includes features like a payment gateway, virtual terminal, recurring billing, mobile payments, and a customer portal. They also offer fraud prevention tools to help reduce chargebacks.
Dedicated Account Manager
You are assigned a dedicated account manager to help you through the application and boarding process. Your account manager remains your single point of contact for support and any account changes needed in the future.
Obtaining a high risk merchant account for your business allows you to accept credit card payments and gain the benefits of a full-service payment solution. With competitive rates, dedicated support, and industry expertise, highriskpay.com helps ensure your high risk business thrives.
Types of Businesses That Require a High Risk Merchant Account
High risk merchant accounts are required for certain types of businesses that are considered “high risk” by banks and credit card processors. These include:
Online Gambling Operators
Online gambling operators require a high risk merchant account to process customer payments and payouts. Traditional banks typically will not work with gambling operators due to legal and regulatory concerns. High risk specialists are experienced in the gaming industry and can provide gambling merchant accounts to process payments for sports betting, casino games, poker, bingo, and more.
Adult Entertainment Industry
The adult entertainment industry, including online streaming media and e-commerce sites, are limited to high risk merchant services. These accounts allow processing of subscriptions, pay-per-view content, and product sales on adult websites.
Travel Agencies
Some travel agencies may be deemed high risk, especially those specializing in high-cost or adventure travel. There is a perception of higher chargebacks and fraud risk with travel companies. High risk travel merchant accounts provide solutions for agencies to accept payments for tours, hotels, flights, and other travel services.
Tech Support Companies
Tech support companies that provide remote services are often labeled as high risk due to a higher incidence of chargebacks. Legitimate companies in this field can obtain a high risk merchant account to accept payments via phone, website, or mobile app for computer repair, smartphone repair, IT consulting, and other technical support services.
Supplements and Nutraceuticals
The nutritional supplements and nutraceuticals industry is considered high risk by some payment processors due to strict regulations and a higher risk of chargebacks. Merchant accounts for dietary supplement and natural health product companies allow them to process payments from customers purchasing vitamins, supplements, essential oils, herbal treatments, and other nutraceutical goods.
In summary, many legitimate businesses that experience higher chargeback rates or more regulatory scrutiny can benefit from a high risk merchant account. By partnering with a high risk payment processor, these companies gain access to merchant services to accept credit and debit card payments from their customers.
How to Apply for a High Risk Merchant Account at highriskpay.com
How to Apply for a High Risk Merchant Account at highriskpay.com
To apply for a high risk merchant account through highriskpay.com, you will need to follow their application process.
First, gather the necessary documentation for your business including business licenses or permits, bank statements, processing statements from your current processor if applicable, and a voided check. You will also need to determine an estimated monthly processing volume for your business to provide on the application.
Next, fill out the online application on the highriskpay.com website which will request information such as your business contact details, owners’ personal information, business type, products sold, and the required documentation. Be prepared to provide complete and accurate details.
Once you submit the application, a highriskpay.com account executive will review your information. They may contact you to request additional documentation or clarify some details. If your application is approved, you will receive a merchant services agreement outlining the terms and conditions of your account to sign and return.
Upon receipt of your signed agreement, your account will be set up and ready to start processing payments. A representative will contact you to provide login credentials for their virtual terminal and payment gateway along with any necessary hardware like a card reader. They will also review best practices for high risk processing and how to avoid issues that can lead to chargebacks or account termination.
Using a reputable high risk processor like highriskpay.com that specializes in serving business types classified as “high risk” can increase your chances of obtaining a merchant account. Their team has the experience to properly assess the risk factors of your business and work with acquiring banks willing to underwrite the account. By following their application process, providing complete information, and maintaining compliance with their terms of service once approved, you can establish a high risk merchant account to start accepting credit and debit card payments from your customers.
FAQs: Everything You Need to Know About High Risk Merchant Accounts at highriskpay.com
What is a high risk merchant account?
A high risk merchant account is a special type of account that allows businesses classified as “high risk” to accept credit and debit card payments. High risk businesses include those in industries like adult entertainment, gambling, travel, and e-cigarettes. These businesses typically have a higher risk of chargebacks and fraud, so traditional merchant account providers usually deny them service. High risk merchant account providers offer accounts tailored to these high risk businesses.
Why do I need a high risk merchant account?
If you operate a high risk business, a high risk merchant account is essential to accepting credit card payments from your customers. Without a merchant account, you have no way to process card payments, limiting you to cash transactions only. High risk merchant accounts provide payment processing solutions for businesses that otherwise struggle to get approved for a standard merchant account.
What are the fees for a high risk merchant account?
High risk merchant accounts typically have higher fees than standard accounts to offset the increased risk. Common fees include:
- Application fee: A one-time fee to apply for the account, usually a few hundred dollars.
- Monthly fee: Ongoing fee for maintaining the account, typically $30 to $300 per month.
- Discount rate: Percentage charged per transaction, often 3-5% for high risk accounts.
- Chargeback fee: Fee charged if a customer disputes a charge, usually $15 to $25.
- Termination fee: Fee charged if you close your account before the end of your contract, up to $500.
The exact fees depend on factors like your business type, processing volume, and the merchant account provider you choose. Be sure to compare fees across different providers to get the most affordable option for your needs.
How do I apply for a high risk merchant account?
To apply for a high risk merchant account, you will need to provide:
- Information about your business ownership, products/services, customer base, etc.
- Bank statements for your business
- Personal information for business owners including SSN, bank statements, utility bills, etc.
- An estimated monthly processing volume
The application process typically takes 1 to 2 weeks for approval. Be prepared to negotiate the most favorable rates and fees for your business. With the right high risk merchant account provider, your high risk business can thrive.
Conclusion
In summary, if you operate a high-risk business, securing a merchant account can be challenging. However, with the right payment processor, you can accept credit card payments from your customers. Highriskpay.com offers high-risk merchant accounts with competitive rates and fees to businesses in many industries. Their approval process is fast, and their customer service team provides support every step of the way. By partnering with a reputable company focused on high-risk accounts, you can gain access to payment processing solutions tailored to your business needs. A high-risk merchant account from Highriskpay.com may be the ideal solution for your company to thrive and reach its full potential.
