High Risk Credit Card Processing
High Risk Merchant Accounts are representative of a category of credit card processing for which the bank and processor simply prefer not to do business. The criterion for High Risk Credit Card Processing solutions may simply be as it relates to poor credit worthiness of the potential merchant, but more likely attributed to various business segments for which the financial institution simply does not want to participate.
Rate structures for high risk businesses generally demand a premium to offset the anticipated loss by related transactions. This means that regardless of the type of merchant account the rate structure is based upon (swipe, not swipe, transaction volume and amounts) the cost per transaction will be higher.
What you should know about High Risk Credit Card Processing
Each processor might consider the associated risk “different” for a variety of categories of businesses. Those with poor credit for example might be turned down by one institution only to be welcomed by another.
Other potential merchants might be turned away based on the increased risk of potential fraudulent charges. In contrast, a business might have a lower fraud risk, but perhaps is a merchant that provides services deemed inconsistent with an institutions social value. High Risk Credit Card Processing examples might include adult entertainment sites, online gambling, etc.
And then there are high risk merchant accounts that might not be so obvious. Ventures such as Dating services, Natural Health, Credit Repair, Travel, Weight Loss, Multi-level marketing and Mortgage Modifications may also be subject to denial or at a minimum, a higher rate structure. Some processors may also place home based businesses in this category.
How to get a High Risk Merchant Account
You could secure the services of an entity overseas to underwrite your transactions, but without regulation and oversight, that prospect might seem risky to consider. Alternatively, you may also consider a variety of merchant processors who may use such an opportunity to charge what we can only describe as “abusive rates.” What you want is a processor with a terrific reputation that knows how to navigate through the process of potential high risk merchant needs.
At 1st National we evaluate each request on its own merits based on a number of risk variables. As with any merchant account solution recommended, successful solutions are based on detailed evaluation of the merchants’ business requirements. Give us a call when you have a few moments and lets see how much of a premium, if any, is really warranted.
Interested in what 1st National can do for your business? Give us a call or complete our “quick quote” request. Between our well rounded inventory, Class A Settlement Banks & Processors, and a full suite of Merchant Services, our talented agents are sure to be of value.