Explaining High-Risk Merchant Services for Business Growth.
support@paycron.com +1-800-982-1372
Explaining High-Risk Merchant Services for Business Growth
October 3rd, 2019


Posted by:

Owing to numerous benefits card transactions bring along, a large section of society banks upon credit or debit cards for making payments or purchases. Tons of people across the world have stopped carrying any cash in their wallets, which makes it imperative for your business to accept card payments. Navigating the complexities of the high-risk industry can be challenging, but with specialized high-risk merchant services, your business can achieve its goals with confidence and security. Our tailored solutions are designed to meet the unique needs of high-risk merchants, providing robust payment processing, fraud prevention, and compliance support. Whether you’re in adult entertainment, travel, CBD, or any other high-risk sector, our services ensure seamless transactions, mitigate risks and enhance your business’s growth potential. Partner with us to unlock new opportunities and take your high-risk business to the next level.

This is a no-brainer but a business that does not accept card payments loses a large part of its profits (or some) to its competition (that accepts card payments). And, it is independent of the fact that you are a product-based company or one that is service-based. You would not like to be on the receiving side of the spectrum where customers will prefer other businesses over yours. It is unambiguous that to see the success of your business you need to keep your door open for customers with cards in their hands.

What should be your next step then? Start accepting card payments. It is so obvious and simple. Right?
Unfortunately, it is not that simple for all merchants, especially those who have started recently. Small businesses often face more challenges than well-established companies in availing the hi-tech payment solutions.

Have you recently faced a rejection for card processing services or have you faced an abrupt termination of your merchant account? This can be a sign that you need a high-risk merchant account anytime soon.

Who is a High-Risk Merchant?

A merchant who has been denied processing services by the issuing banks or processors can be a high-risk merchant. Some businesses are considered high-risk for one or more reasons. These are often identified to be at a higher risk of chargebacks which levies financial losses on the involved financial institutions such as banks and payment processors.

By rejecting a business’s merchant account application, these institutes supposedly, reduce the chances of facing financial burden build up in the chargeback occurrence.

This discrimination might not appear to be a good thing for small businesses and even for those who have been facing hardships in availing of modern-era payment solutions. Experts nevertheless stress its importance, as it goes in favor of the customers who should have a proper mechanism to be secluded from the high risks of a business’s nature. Moreover, it is a sort of liberty provided to banks and other financial institutes to provide their services while they are free to withdraw the same when it is getting burdensome.

It is important to know that banks and financial institutes may vary in their criteria for accepting and rejecting your application. It is good news for the merchants facing trouble in buying merchant account services. They can try with some other institution when jilted by one.

It is most important to learn the features that can make you fall into the category of a high-risk merchant. Possible reasons for you being classified as high-risk:

  • If your history is of high rate of chargeback activity.
  • If the industry you are a part of is itself high-risk for several reasons such as online gambling, nutraceuticals, adult entertainment, etc.
  • You are a comparatively new business with no history.
  • If you have been a credit history defaulter.
  • If your business is dependent on card-not-present transactions exclusively.
  • If you process overseas transactions.

Due to the above-listed characteristics or reasons related to the merchant’s business practices, your company can be labeled as a high-risk entity. Owing to this tag of high-risk merchant, you would not be able to succeed in securing a standard merchant account. You will have to get a high-risk merchant account for your business.

The bottom line difference of this includes various restrictions and very high processing fees. On top of it, less number of providers are open to proffer you merchant account services that contribute even more to your plight.

Quest For The Right High-Risk Card Processing Service Provider:

It is a sad fact for high-risk merchants that they do not have too many options before them as far as taking up payment processing services is concerned. Knowing the reality, most of the merchants that are labeled as high-risk happily agree to open their account with the first provider that comes across. Caution: IT IS A HUGE MISTAKE!!

Knowing your reality and acting according to it is fine, but try and understand the market trends. Is it not possible that there are many more players in the industry like you? And who knows you still have a strong relative position?

Industry insiders reveal the overlooked truth of payment land by saying that by not making use of their inherent right to choose the most suitable provider, merchants invite problems to severe future implications.

There is no denying that the road to secure and fast payment processing will be difficult for you but, when you go with an unqualified processor you are binding black cloth on your eyes. Ideally, a payment processor you should be opting for is not only reputable and experienced but also holds expertise in handling high-risk merchant accounts.

In repercussions of not sticking to these standards you may end up encountering problems like excessive fees, and increased vulnerability to chargebacks and it may even lead to placement of your business on the MATCH list. There is no need to act in a hurry as no matter if their number is less, there are providers that provide competent and robust card processing services to high-risk merchants.

Advantages Of Working With A Proficient:

Making comparisons between processors based on price may not help always. To have needed traction, you need to buy specialized services only. A processing partner that exposes your business to competitive options is the one you should be looking for.

Unlike the sub-standard payment processors, their experienced team will not leave you alone to deal with chargebacks. With their chargeback protection practices in place, they will be able to help you combat the fraud.

It is only possible to get access to ACH, eChecks, online payment gateways, loyalty cards, and more precocious payment acceptance ways when you associate with the master of high-risk payment processing.

Seeking Help For a High-Risk Processor?

Are you not able to cope with the ordeal of beckoning the best high-risk payment processor? You need not give up on your business plans as long as Paycron’s ace team is rendering its assistance. Call us now to break down the tedious process into a simple and easy one.

© 2024 All Rights Reserved.
credit card