High-Risk Merchant Account For Small Businesses

A high-risk merchant account is an account used to process payments made online by the customers of high-risk businesses. If you want to ensure that your payment processing is smooth, you would like to hire the best high-risk payment processor or merchant account services provider.

There are so many payment processors that provide the services of high-risk merchant accounts. However, the question is what the best high-risk merchant account for small businesses is. There are so many providers willing to provide merchant account services to big high-risk businesses. On the other hand, very few of them if any are willing to lend their services to the high-risk merchant account. 

This blog will guide you on how to find a high-risk merchant account for high-risk small businesses.

But before you even begin your search for an ideal high-risk merchant account for small businesses, you must know what a high-risk merchant account is and how it works?


What is A High-Risk Merchant Account?

A high-risk merchant account is an account used to process payments made online for high-risk products or services. They are often provided to merchants at a premium price. It is because these merchant account service providers assume any responsibility in case of any risks. It is understandable as well because high-risk businesses are susceptible to chargebacks and frauds.

High-risk merchant accounts are only opened for high-risk businesses.




High-Risk Businesses

A business is considered high risk when :

1. You are a terminated merchant (TMF, a merchant who lost its previous payment processor because of excessive chargebacks).

2. Your business has high chargeback ratios.

3. You trade internationally or you receive payments in multiple currencies.

4. Business has a high employee turnover ratio.

5. Business with a bad credit card processing history

6. Business with a high volume of returns and refunds

7. New merchants with no or little credit card processing history

8. Business that provides subscription-based products and services.


Moreover, some businesses are considered high-risk because they fall under any of the business industries given below.

  • eCommerce

  • Anything adult-oriented

  • Tobacco

  • Gambling

  • Financial services

  • Legal services

  • Travel and hospitality

  • Health and wellness

  • Software

  • CBD products


Given below are the most suitable services of a high-risk merchant account for small businesses.

  1. Payment cloud

  2. Durango

  3. Mygreen Merchant Services

  4. SMB Global

  5. Soar payments

  6. eMerchant Broker

            Comments

            1. Raza Meer3 February 2022 at 01:18

              Thank you because you have been willing to share information with us. we will always appreciate all you have done here because I know you are very concerned with our. North American Bancard Agent Program

              ReplyDelete

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