A high-risk merchant account is a type of payment system for the business which are considered of high risk to the banks and other financial institutions. Some businesses are very much prone to charge backs and thus they have higher chances of risk which also affects the industry reputation and process history of the business.
High-risk trader accounts are a subset of administrations that permit organizations to acknowledge card installments from clients. Visa processors appoint dealers to one of two classes: high or low (typical) risk according to various components.
Fees and charges of high-risk merchant account.
High risk merchant account generally have cost much more than accounts for low-risk business There are many high-risk payment providers who provide setup fees, annual fees, and some other charges so it is advisable to read the whole contract.
Common types of businesses that need high-risk merchant accounts.
1) Travel industry.
2) Airline industry.
3) Forex trading.
4) Telecom industry
Applying for a high-risk merchant account
To get a registered high-risk merchant account, one has to fill out an online application form. The whole process of setting and applying for a high-risk merchant account is very simple and short. You can choose any preferred payment method for the same. As soon as the details are approved, one can start processing payments.
Here are some documents which are required for getting at -risk merchant account registered:
- Certificate of incorporation
- Copy of passport
- Shareholders certificate
- Charge back history for the last 6months.
- License number and the name of the organization.
The advantages of having a high-risk merchant account
Having a high risk merchant services several benefits:-
1) All round coverage
Being a high-risk merchant, one can grow their business by accepting trade in multiple currencies from all over the world. This feature gives you access to a wide market.
2) Charge back protection
A merchant carrying on a business with higher chargebacks or refunds then in that case, having a high-risk merchant account adds up a pause on putting up with high risk credit card processing.
3) Expanded business
Having a high-risk merchant account allows the business or the merchant to sell those products or services which are not allowed in case of a low-risk merchant account. In this case, there is much opportunity to expand the business and chances of long term growth.
4) Increase in profits
When the merchants are able to sell products and services to a large number of people, then the possibility of earning profits provides more chances of earning money and better income.
Things to consider while looking for a high-risk merchant account
There are many things to consider before making a decision for a high-risk merchant account:-
- Support system
One must be sure that the credit card payment provider provides a high-risk business guarantee and every issue will be resolved.
- Pricing
There should be simple and all relevant information provided about fees and other added costs. There must be no hidden cost or any kind of extra fees.
Conclusion
There can be many reasons businesses can be considered as a high risk. However, it is important to set up your high-risk merchant account through a reliable procedure in which the whole process can be simplified so that there are minimum charge backs and frauds.
