High Risk Merchant Account Processing

Posted by Brian Latch on February 4th, 2021

If you own a small business, you will likely never have heard terms like high risk merchant account and a high risk payment gateway, until your business is identified as such. But what makes a business risky? Companies are mostly identified as high risk merchants because there is a far more chance of these businesses going bankrupt or disappearing before they have repaid their debt. In order to receive merchant services, these businesses have to go through extra scrutiny. You may be required to have a certain amount of cash reserve in your account or be limited to a number of transactions per month. In most cases, a higher processing fee is expected to be paid for receiving merchant services due to the high-risk status.

However, with all these scrutinies come certain benefits that low risk merchant accounts lack.

•          High risk payment gateway and merchant account processing offers more flexible payment acceptance options

Only certain types of revenue can be collected by low risk merchants through their credit card. High risk merchants have fewer limitations in comparison. They can offer recurring payments. They can process higher sales volumes for special sales. They can also sell a wider variety of products and services.

•          Ability to work internationally

High risk merchants have fewer restrictions when it comes to international transactions. This helps in the expansion of the business.

As you may have learned at this point, being a high risk merchant can influence getting a merchant account. In comparison to businesses that are considered low risk, acquiring a merchant account for high risk businesses is a much harder and costlier process. Despite the tough competition in the business of merchant account services, there is no assurance that you will get approved for a merchant account. Don’t let that bring you down, keep looking for a provider who is willing to offer you the services you need.