Once you have identified your business as high risk, the next step is to apply for a high-risk merchant account. This is the only way to accept and process payments. For your application to scale through, you need to know what the US acquiring banks and high-risk merchant account providers want to see. If you are having a hard time getting approved domestically, it might be better to look at offshore options like a high-risk merchant account Europe.
The approval of your high-risk merchant account depends on company financials, a personal credit score, low chargeback ratios, and lengthy payment processing history.
High-Risk Merchant Account Europe| Why You Should Consider Getting One
According to the recently released data, 79% of American consumers use at least one credit card. This percentage is the highest ever since the Federal Reserve Bank began collecting this data type in 2008.
This development has created plenty of business for financial institutions and card processors. It also means that terms and conditions are strict and much more regulated.
This might mean very little to low-risk businesses. However, this has become increasingly difficult for high-risk enterprises, and why high volume merchants and hard-to-place merchants should seek high-risk merchant account Europe alternatives.
US Pioneered Credit Card Processing
American banks pioneered credit card processing services with grocery stores and supermarkets among their very first clients.
Today, it is almost impossible to sell either goods and services without having a credit card processing payment gateway or using other card-not-present solutions.
The massive influx of financial institutions offering competitive prices has led to harsh terms and regulations, particularly for international businesses and hard-to-place eCommerce merchants.
Non-US businesses that cannot find seamless credit card transaction payment gateways and other card-not-present services usually spend a fortune on randomly acquiring bank services without knowing that a european merchant account is a convenient alternative.
High-Risk Merchant Account US vs High-Risk Merchant Account Europe
Getting regular merchant account services in the US can be a challenge for international merchants.
For businesses located in the US, acquiring banks spend plenty of time researching and checking them out before providing US high-risk accounts or high-risk merchant payment gateways.
However, offshore high-risk merchant accounts in Europe are often more flexible and providers can occasionally be more lenient with their rules and regulations. It is a scenario that makes high-risk merchant account Europe providers more willing to work with international high-risk merchants.
Terminated merchants in the US can also get high-risk merchant EU accounts regardless of their poor credit card processing history.
In terms of discount rates, additional charges, gateway installation fees, and more, a high-risk merchant account in the US is cheaper than a high-risk merchant account in Europe.
The difference in pricing between US high-risk merchant accounts and European high-risk merchant accounts can be traced back to competition between credit card processors and acquiring banks. It is a development that has forcibly driven prices down.
For instance, if a few acquiring banks lower their credit card processing rates, others will want to do the same in order to remain competitive.
There are hardly any US-style competitions with high-risk merchant accounts in Europe which is why their prices are slightly higher.
However, it is important to note that there are some exceptions to the rule in terms of some EU banks offering to price merchants much lower than their US counterparts.
When to Apply for a High-Risk Merchant Account Europe
It is important to get a high-risk merchant account in the European country where you sell your products or services.
A US high-risk merchant account might allow you to do business outside the country, but going this route often attracts high international transaction fees and unfriendly exchange rates.
With plenty of business potential coming from Europe, applying for an EU high-risk merchant account is definitely something to check out.
Additionally, having a high-risk merchant account Europe doubles as a smart way to have a backup high-risk merchant account in case something happens to your first account.
The essential features of a US high-risk merchant account and EU high-risk merchant account are basically the same.
At the very least, you get a high-risk credit card processing payment gateway and in-built security parameters to protect your customer’s information from fraudsters.
3 Things to Have With Your High-Risk Merchant Account Europe Application
There are specific things that a high-risk merchant account Europe provider wants from you. Having these things handy when you put in your application quickens your EU high-risk merchant account approval process.
If you are looking to increase your approval odds, your credit processing history and personal credit score play vital roles.
A business credit score below 580 is not great and can sabotage your high-risk merchant account Europe application. When you are looking to increase your chances of success, try repairing your credit before tendering your application.
Even as a merchant looking for a high-risk merchant account in Europe, you still pose a financial risk to an overseas payment processor.
One of the best ways to quell this fear is to present a 90-day credit card processing history that shows consistent sales and highlights your sales volume.
Fluctuations, no sales, high ticket sales, returns, and excessive chargebacks are concerning to a high-risk merchant account Europe provider.
Ensure that you cover all these bases before putting in a high-risk merchant account Europe application.
A high-risk merchant account Europe provider will take a bit of time checking out your site and what you are offering.
Include a summary of your business with your high-risk merchant account Europe application.
In this vein, the provider gets a good grasp of your business, what you are selling, your pricing model, and all other essentials.
You should make your one-pager an easy read by summarizing only the vital points –short and sweet is always best.
3rd Party Payment Processor Vs High-Risk Merchant Account Europe
3rd party payment providers like Stripe and PayPal offer fast approvals for merchant accounts.
This means that you can get your business up and running in a matter of minutes, even with no transaction history or bad credit.
Most of these 3rd party payment platforms are not friendly with high-risk merchants and raise eyebrows when sales volume surpass $10,000 in a month, occasionally requesting rolling reserves and holdbacks on limited sales volumes.
Nor are they an ideal choice for international low-risk merchants. 3rd party processors do not offer services in all countries and this is evident in a lengthy list that includes some European countries.
Also, even if your merchant account is approved as a high-risk merchant, your business can be shut down at any minute and your funds frozen at any time by these 3rd party processors.
It is in your best interest to stop processing sales right now while your payment gateway is still operational and instead submit a high-risk merchant account Europe application.
High-Risk Merchant Account Europe | Why Choose SecureGlobalPay
A high-risk merchant European account is something you should be considering if you are looking to leverage flexible rules and not overly strict regulations in a bid to enter new markets or expand your online business into other countries.
Unlike U.S. high-risk merchant account providers that question your eligibility simply because of the location of your business, European high-risk merchant account providers have solutions for your business and are looking to partner with you irrespective of your location.
European high-risk merchant accounts offer credit card processing facilities for risk payments to businesses worldwide.
It is best to work with an experienced and competent provider that has a robust network of acquiring banks for various types of business. These acquiring banks must offer competitive, but affordable, high-risk merchant account Europe services.
With SecureGlobalPay, you can get a reliable high-risk merchant account Europe payment gateway for your business.
Highlights of our high-risk merchant account Europe services include:
- No geographical location restrictions. It means you get an account regardless of where you are running your business.
- Support payment processing for all mainstream companies including MasterCard, Maestro, Visa, and JCB International.
- Serves a diversity of high-risk businesses including adult toy merchants, attorneys, affiliate programs, and Internet service providers.
- We help merchants whittle down the risk of returns, while also helping reduce fraud and chargebacks.
- PCI compliant gateways are mandatory with our high-risk Europe merchant accounts. Our technical department is always on hand to help out with integration and credit card processing problems.
- Virtual terminal services are available to our high-risk merchant account Europe holders. This feature allows merchants to accept payments via mail or phone orders.
- A high-risk merchant European account with SecureGlobalPay allows you to accept and process payments in more than 160 international currencies including the Euro, USD, and Pound Sterling.
Most US high-risk merchant accounts may provide the opportunity to accept some high-risk international payments, but this is not sustainable and can be a cause for worry, especially if a lot of these sales are coming from high-risk countries.
If you have applied for a US high-risk merchant account and suffered rejection multiple times or ended up on the dreaded MATCH list– an offshore high-risk merchant account in Europe is the answer.
We have earned positive testimonials from our customers and look forward to serving many more.
By choosing us as your high-risk merchant account provider, be rest assured that the financial information of all your customers is safe.