Providing The Best High Risk Merchant Account

 The high-risk merchant account is a certain type of business bank account that is assigned with merchants presenting a degree of risk associated with the business. The merchants are labeled as high-risk for certain reasons. 

• A merchant should have an imperfect or flawed credit history.
• The merchant’s industry has present concerns with reputation, health risks, financial and other important aspects.
• The merchants which use domestic or also process a high volume of transactions.
• The merchants in an industry with high chargebacks or fraud rates along with recurring billing or technical support.
• Not all kinds of acquiring banks are also keen on providing high-risk merchant account solutions which also fears the risk and outweighs the rewards.

 
A merchant account is necessary with the business to accept and process payments from credit or debit cards. The merchant account is a third party that also holds the funds until they get transferred to the bank accounts.
 
To get approval of the high-risk merchant account there is a need to do the following:
 

• Detailed financial and business background information
• Business type, history along with personal credit
• Application approval with provider’s under-writing departments

 
Here are some of the reasons related to high-risk payment gateway:
 
Being with regulated industry: The tobacco, firearms, pharmaceuticals, and much such business require extra steps along with additional procedures. It also validates customer identity and process transactions. The more complex and sensitive transactions are put at more risk with issuing bank.
 
Being in an industry with a higher rate of chargebacks: Chargebacks are initiated by the dissatisfied customer with processor or bank as a procedural or clerical error. It also costs money and chews up an enormous amount of the bank’s time that conducts investigations and arbitrations. Some of the industries lead to hospitality and high chargeback rate by nature lead to people frequently change travel plans. It also gets dissatisfied with accommodations, cancels trips, etc.
 
Being into an online business: The CNP that is a card, not present transactions are found riskier than Point of Sale transactions. There is no physical way for the seller to size up with the legitimacy of customers. Online businesses are more susceptible to fraudulent transactions and are put in the high-risk category.
 
Having high average ticket sales: The big-ticket items elevate any risk of frauds and it also increases the financial hit of chargebacks. The bank has to cover the risk with higher fees and tighter terms which gets associated with high-risk accounts.
 
Being a new business: The new business with no credit history, banks are likely to assume the worst and put in a high-risk category. The business runs with help of high-risk merchant account under the right circumstances with proper documentation.
 
The understanding of high-risk merchant accounts with various types of business that operate with greater risk of chargebacks than others. Some of the business runs with the help of monetary transactions, others accept debit and credit cards. The other risk factors with personal credit history and risk assessment with an excessive number of chargebacks, refunds, or disputes.

Some of the accounts come with features that are present under normal accounts:

• Processing of different types of currency
• Processing with higher sales volume
• Reoccurs with billings

 
A high-risk merchant account UK involves a considerable number of factors that also need to be assessed before a decision is made to the provider. The other advantage is with high-risk merchant accounts UK with a higher threshold for cancellation based on chargebacks that are compared with standard merchant accounts.
 
The benefits of high-risk merchant accounts by eskaypay are: 

• More banking solutions acquired: The acquiring banking partners whether domestic, international, and offshore are known to be best with each industry. 

• Work according to the set guidelines: The e-commerce business has changed and getting a high-risk merchant account is necessary. 

• Fraud protection tools: The war on credit card fraud seems to reach a high amount every year. epay offers many fraud protection measures through its network of acquiring banking partners with SSL certification and 3D secure processing. 

• Offshore and International merchant accounts: It could be found with industry or with the imperfect credit history. The offshore and international banking partners offer fewer trading restrictions with possible tax benefits. 

• Multi-currency processing: The banking partners and resources enables merchants to process in nearly any form of currency that accepts local and familiar credit card brands. 

Who needs a high-risk merchant account?

Examples of the high-risk industries are the travel industry and various factors that can cause cancellations. It ends up with a number of refunds along with customers who file chargebacks. There are many other industries or with business models which are prone to chargebacks. The most common types of business are a part of high-risk business these days. The business in the industries are mentioned above and similar, with a high-risk merchant account that accepts credit card payments on the website.

Read our another blog post: Payment Gateway