It can be rather challenging for high risk businesses to find a merchant account for online payment processing. This article will help you with the top high-risk merchant industries and the best high-risk merchant account for your own business.
High-Risk Merchant Industries
Are you wondering which industries are labeled as high risk? What factors tab merchant accounts as “high-risk?” Well, each industry has its unique features. Some industries are associated with higher risks of payment processing.
By the way, there’re lots of businesses that don’t even realize they’re high risk until they face a problem. E.g., their payment processing account may get frozen because of insufficient funds. Moreover, the provider can completely close your account because of a higher level of chargebacks. Let’s see what industries and merchants are labeled as high risk:
- Those under high regulation
- Industries associated with card-not-present (CNP) transaction processing
- Recurring billing for products/services
- Industries dealing with reputational risk
- Industries associated with higher levels of fraud and chargebacks
- Industries dealing with high ticket transaction processing
- If merchants have a bad credit history
Are you running a business in one of these industries? Are you dealing with one of the mentioned high risk factors? No worries. To obtain the right merchant processing services for online transactions, work with a reputable processor that specializes in your field and can best help you with high-risk merchant industries. Make sure the approval process is simple and the rates are the cheapest possible for high risk credit card processing services.
High-Risk Businesses: High-Risk Payment Processing
Credit card processing companies bear responsibility for all of the transactions going through your business. Higher rates of chargeback and fraud are factors processors try to avoid since they don’t want to face problems associated with these factors.
Below, you can find high-risk industries and solutions, as well as best practices that’re important when applying for a merchant account:
- Adult industry
- Auction websites
- Business opportunities
- Direct Marketing
- E-cigarette/ Tobacco/ Vape
- Extended warranty services
- Firearms
- Large average ticket size
- Liquor
- Loans
- Membership or subscription services
- Multi-level marketing
- Nutraceuticals
- Pharmacies
- Ticket brokers
Businesses can be classified as high risk based on more than one factor. The most common ones have to do with operation in a high-risk industry and a financial failure risk. Though a high risk merchant account isn’t easy to obtain, it’s not impossible.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated high risk merchant account processor in the country that offers services for high-risk merchant services. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.