A Guide to High Risk Merchant Services
Credit card payments should be accepted by your business in order for you to gain more customers. Credit card payments is important because it is the only method of payment customers have when buying from your online store. Credit card processing is offered to businesses by thirst party agencies that offer processing services. Because of the lack of support from merchant service providers, most high risk business owners find it difficult to open a merchant account.
Merchant accounts are offered by specialized service providers to high risk businesses. Adult entertainment sites, health and beauty websites, detective services, online dating sites, lottery sites, and sports consulting sites are just some of the examples of high risk businesses online. These businesses are inherently risky for obvious reasons.
High volume businesses are also included for this type of merchant services because they are also susceptible to credit card fraud and thus are also high risk. Small companies with low volume sales are also included because they do not have the necessary fraud screening tools.
It is important to know the characteristics of the individual business or business owner. Businesses are considered high risk if they are not accredited with local bank bodies, if they have poor or inconsistent credit histories, or if the business owner is blacklisted due to any reason.
High risk merchant find it difficult to get a merchant account which will enable them to use credit card in their transactions. There are merchant service providers who especially cater to high risk merchants and this is important to enable them to conduct business with their clients.
Merchant service provider for high risk businesses are charged large fees for their services. Merchant services fees for high risk businesses are usually higher than for regular businesses.
The set up fees are negligible for regular merchant accounts. High risk merchant accounts start with high fees from the start and include very high processing fees.
It is important for business success to be able to receive credit card payments and so if you have a high risk business you have no choice but to get a merchant account from these services providers despite the high fees that they charge. Choosing a merchant service provider should be done with care so that you don’t end up getting duped.
One way to find a good merchant service provider to find a well established on with good reputation which you can find out by asking around, and who is known to give quality services.
Choose a provider who caters to your specific needs. Some businesses require 24/7 support depending on the nature of the business.
If you want to success in your high risk business you still need processing services no matter how unpleasant this option is.