SecureGlobalPay provides high-risk credit card processing solutions that are compatible with Canadian high-risk payment processing rules and regulations for business owners. Our banking partners are well-versed in the high-risk merchant account provider Canada Global Market and are able to provide high-risk payment processing Canada solutions to most business types.
A reliable high-risk merchant account provider Canada can help you accept payments from all major credit cards and debit cards for businesses in various high-risk industries. CBD and cannabis merchant services, as well as adult and travel, are among these business models. Our payment gateway with multi-currency payment processing can assist you in establishing a cross-border selling presence and attracting new clients.
- The Canadian government has enacted several measures to help ensure high-risk goods and services are properly processed.
- There are a few high-risk industries that are known to be very hard to approve.
- Cannabis, travel, and adult high-risk industries in Canada face unique challenges.
- The Canadian government has been working on new regulations for high-risk providers.
- Canadian provinces and territories regulate high-risk providers by requiring the registration and licensing of high-risk providers. They must meet minimum capital and liquidity requirements.
- Merchant services in Canada Providers are continuously working to obtain additional banking relationships in this region to facilitate the approval of most business types.
Payment Processing Services for High-Risk Merchant Accounts in Canada
Have banks or other processing companies classified your business or product as “high risk“? Have any of these businesses recently rejected you? Allow us to help you start accepting digital and mobile payments with high-risk payment processing Canada solutions, even if your business is considered high-risk.
SecureGlobalPay is a high-risk merchant account provider Canada that offers affordable processing rates and provides great customer service to many high-risk enterprises.
Is SecureGlobalPay a High-Risk Merchant Account Provider in Canada?
Yes! SecureGlobalPay works with various merchants, including those considered “high risk” by banks. These merchants work in high-risk businesses, which means they’re more likely to experience chargebacks, disputes, and fraud.
Many payment processors refuse to participate in processing transactions for high-risk industries. Businesses may have difficulties acquiring a high-risk merchant account. Occasionally, these businesses may get approved by a “high-risk payment processor,” but still face holdbacks, reserves, and closures due to ongoing issues related to chargebacks.
An Introduction to High-Risk Industries Canada
The global economy is expanding at a faster rate than ever before. All of these industries are working toward the same objective. The goal is to make as much money as possible while mitigating their risk due to chargebacks, returns, and fraud.
Customers, merchants, and financial institutions are all exposed to significant risks when engaging with high-risk businesses. We will discuss a few of the industries that are deemed high-risk.
Why Is Cannabis Payment Processing Considered High-Risk?
Marijuana and hemp products expose financial institutions to legal, reputation, and regulatory risks. Racketeer Influenced and Corrupt Organizations (RICO) Act cases can be filed against financial institutions that fund marijuana farmers and shops. Any search engine will tell you everything you need to know about RICO cases in the marijuana sector.
The hazards of financing marijuana firms are far greater than those of funding hemp enterprises. In addition to the risks associated with bank accounts, lending to these enterprises faces credit risks.
Even if an institution is just lending to a landlord whose property is used as collateral, this is true. The property is still considered home to a marijuana grower, processor, or sale.
Travel Payment Processing in Canada
Travel merchant accounts are prone to fraud and have a high rate of chargebacks. Vacations and business trips will not be paid for in cash by consumers. The good news is that some credit card payment processing experts are willing to take a chance.
Credit card processing companies consider travel firms and other associated enterprises high-risk. Fees for high-risk travel merchant accounts are often higher than regular merchant accounts.
The sooner you get everything up and running, the sooner you can start accepting credit and debit card payments. Purchase price caps are typically not used with high-risk travel merchant accounts. Consumers may purchase without restrictions as long as they have sufficient credit. Utilizing a high-risk payment processing Canada merchant account with intelligent payment gateway routing for travel-related services is
However, if continuous chargebacks occur, funds will be held, the account will be reviewed, and possibly even canceled with little to no notice. Paypal and Square are notorious for this and it’s best to avoid doing business with them all together when operating a high-risk business. It’s best to choose a high-risk payment processing Canada merchant service provider that understands your business model and is eager to help.
The Challenges of a High-Risk Merchant Account Providers & Acquiring Banks in Canada
Merchant attrition has always been a problem for acquirers. However, since the financial crisis in 2008, the average attrition rate has grown. The following are the main reasons for the rise in attrition:
- Economic Downturn
- Durbin Amendment
- Implementation of EMV
- Costs and Other Considerations
Other Key Challenges:
- Debit Interchange Fee Regulation
- Challenges to Make Small Merchants PCI-DSS Compliant
- Competitive Threats from Progressive Players
- Increasing Card Fraud in ‘Card Not Present’ Situations
Current Regulations for High-Risk Providers in Canada
The Proceeds of Crime and Terrorist Financing Act and its Regulations impose compliance program requirements on all reporting companies. A compliance program is a formal, written framework of policies and procedures. The company establishes it to ensure its employees comply with all applicable laws and regulations.
How Do Individual Provinces and Territories Regulate High-Risk Providers in Canada?
The examination phases are:
- Roles and responsibilities
- Planning and scoping
- Examination and assessment
- Developing conclusions
- Finalizing the examination
How Can We Improve the Current Regulatory Landscape for High-Risk Providers in Canada?
Tracking regulatory developments takes up around 15% of compliance officers’ week. TRRI received 57,398 regulatory notifications from 1,000 regulatory agencies in 2018. Businesses expect regulators and exchanges to publish more regulatory information.
A compliance champion or team may not be feasible for small or scaling businesses. Most large companies have a compliance officer, while some have entire compliance departments.
Maintaining a positive relationship with your company’s legal department might aid in compliance. This is no longer sufficient to monitor compliance with static tools like checklists. Automated technologies provide you with confidence that your company follows legislation and standards.
Canada’s Up and Coming Leader in High-Risk Merchant Services: Cannabis, Travel, Adult, Gaming + More
SecureGlobalPay has worked with various Canadian merchants, including those considered high-risk. These include CBD and Cannabis merchant services and Adult and Travel enterprises.
Any cannabis product sold in Canada poses legal, reputation, and regulatory concerns to banking institutions. You may ask why travel merchant accounts are so vulnerable to fraud. One factor is the high chargeback rate.
Businesses recognize the need for additional regulatory data to be made public. We encourage regulators to publish more information to keep the public informed.
We understand that every business is different, so we tailor our services to suit your needs and your type of operation.
As a result, we can protect you from industry pitfalls, which is vital for the success of your organization. SecureGlobalPay is here for you if you need a vendor that does not shy away from serving high-risk industries.
We wish you success in your business. Our team is happy to answer any questions you might have about our specific product offerings. Our services are designed for your smaller home-based business, brick-and-mortar retail store, online travel booking system, or even a cannabis dispensary. SecureGlobalPay provides the ultimate payment processing solution for all retail, high-volume, and high-risk merchants.