Important Things To Know About High-Risk Merchant Account & Payment Gateway

Posted by Apoorv Joshi on July 22nd, 2017

Entrepreneurs enter the market with new business ideas.  When everything is established and they go to the payment gateway / Banks to get the payment gateway, they don’t get the approvals from the risk departments considering the business to be a high-risk business.

High-risk businesses are often declined by the payment processors and acquiring banks and it became difficult to get the fair payment processing account.

All kinds of financial institutions process money. And when it comes to processing money – they are obligated by regulators to classify merchants as low risk, medium risk, and high-risk merchants.

Payment processor will never accept you when they think you process high risk and there are chances that they will lose money. And even if they accept you they will charge very high transaction discount rate. There are few reasons why your business can be considered as a high-risk business. Few reasons are:

• You have lost your previous merchant account due to high chargeback ratio.
• Questionable sales and marketing tactics
• Potential legal and financial liability   
• Your credit is really bad.
• Industry is known for excessive chargebacks or fraud incidents
• Trial continuity business
• Previous credit card processing is not good enough
• You’ve been branded as terminated merchant (TMF).

OBTAINING HIGH-RISK MERCHANT ACCOUNT
If you are not getting the merchant account, don’t worry. There are providers who are specialized in providing gateways to the high-risk account. It may be a little more expensive, you may need to agree to a high rolling reserve or you may need to send more documents during the on boarding process but you’ll be able to get the payment gateway. First of all, you need to find who is able to cooperate with you. We at Merchant Stronghold love to cooperate with merchants that have a high risk business category.

About the Author:
This article was written by Merchant Stronghold, a best High-risk Merchant account & Payment Gateway Provider, It is specialized for credit card processing & offshore merchant account in a globe, Located in Clearwater USA. Our all-in-one merchant accounts include everything that a high risk or offshore merchant’s needs to process successfully. Processing Includes debit and credit card processing,  check processing (ACH), payment gateways, and chargeback management services.