High Risk Merchants and Merchant Services
It is important for businesses today to be able to pay using credit cards when buying from your business. This is especially true if you have an online store, and that is the only option that customers have. There are third party agencies that offer processing services that include credit card processing to businesses. Because of the lack of support from merchant service providers, most high risk business owners find it difficult to open a merchant account.
Specialized service providers offer merchant accounts to businesses categorized as high risk businesses. Adult entertainment sites, health and beauty websites, detective services, online dating sites, lottery sites, and sports consulting sites are just some of the examples of high risk businesses online. The nature of the business makes it inherently risky.
If your business is a high volume one, then your business is susceptible to credit card fraud and thus you are also need this type of merchant services. Since small companies with volume sales do not have the necessary fraud screening tools, they are also considered.
It is important to know the characteristics of the individual business or business owner. Failure to be accredited with a local bank body, poor or inconsistent credit history, or a blacklisted business owner due to any reasons places your company in the high risk category.
if a high risk business fails to get a merchant account it will be difficult to make transactions with customers using their credit cards. This is the reason why the assistance of merchant services providers is needed specially those who cater to the needs of high risk merchants.
These specialized types of merchant service provider do charge some enormous fees. Merchant services fees for high risk businesses are usually higher than for regular businesses.
There are negligible fees charged to regular businesses setting up a merchant account. High service fees and processing fees are charged high risk businesses from the start.
It is important for business success to be able to receive credit card payments and so if you have a high risk business you have no choice but to get a merchant account from these services providers despite the high fees that they charge. But you still must choose your service provider wisely and make sure you are not being taken for a ride.
One way to find a reputable merchant service provide is to ask around to find one with a well established reputation in the field and who is well spoken of for the quality of services they offer.
Choose a provider who caters to your specific needs. For example, you may require a 24/7 support, depending on the nature of your business.
If you want to success in your high risk business you still need processing services no matter how unpleasant this option is.