How to Select a High-Risk Merchant Processor

As a business owner, you want your credit card payment system to work smoothly and efficiently so you can focus on growing your business. If you are having difficulties getting approved, you need to know that you still have options with a high-risk payment provider. How do you select the best high-risk merchant processor? Take your time, do your research, and make sure to pick up the phone and make some calls. It’s important to make absolutely sure, you are 100% comfortable with who you are doing business with. This is the only true way to succeed in the high-risk space. SecureGlobalPay, with over 25 years of experience, is one of the preferred high-risk merchant account processors for these hard-to-approve business types.   

The last thing you want is to end up being one of those declined merchant provider horror stories you might have heard from other business owners. Payment processors often take weeks for an update and possibly even months to get approved. Initially choosing the correct high-risk merchant processor is crucial.

 

How to Find The Best Merchant Processor ?

Here are some tips to help you find the best merchant processor and how to get a high-risk merchant account.

1. Size is not important – neither is a fancy website or incentives that seem too good to be true (as they probably are). Smaller outfits are usually run leaner and are typically far hungrier and more eager to provide such a superb service that you will never want to leave.

2. Customer service is of utmost importance – Glitches happen to even the best-run businesses and can cause difficulties even for the Amazons of this world. Anything can happen in the payments space and you’ll want a provider that definitely prioritizes customer service more than anything.

3. Specialization is critical – E-cigarettes, Cannabis payment services, payment services for firearms merchant sales, and high-risk high-volume merchant accounts are extremely high-risk merchants for obvious reasons. So are furniture sales, even though they are a totally different industry. A high-risk merchant processor that is familiar with your business type is the one you will want to work with.

4. Good chargeback management and anti-fraud systems – If your business is considered high-risk, chargebacks will be one of the main concerns that acquiring banks and card processors will have. Excessive occurrences and consistently high chargeback ratios can be disastrous if not managed properly.

5. Affordable transaction charges and other fees – You will pay a little more for a high-risk merchant account than for regular, “low-risk” retail payment processing. This is obvious. Ensure all rates and fees are affordable and within your budget. Always make sure you understand what you are paying in high-risk merchant account fees before you sign on the dotted line.

6. Fast payouts – Expect that it could easily take anywhere between 2-14 days for processed payments to reach your account. Perhaps even longer depending on the business type and risk factors involved. Make sure you understand your funding times and any holdback or reserve policies you may have.

7. Contract term and commitment – In most cases, your chosen card payments processor will impose a minimum contract period. This is not rare. Make sure to inquire about their chargeback and setup fees. It’s important to understand exactly what you are getting into when looking into how to get a high-risk merchant account.

8. Fair early termination charge – If you are obligated to sign up for a minimum contract period, make sure you fully understand the early termination fee and what this cost entails. Some unscrupulous providers levy hefty fees if you want to switch providers before the end of a contract.

9. Rolling reserve – Card processing companies often protect themselves by holdbacks and reserves. They will do this by retaining a portion of each transaction for a specified period of time before releasing it to you. This can have a significant impact on cash flow. Therefore it’s important to calculate how much the reserve is likely to be and for how long it will be retained.

10. Chargeback resolution system – Merchants get frustrated when customers initiate chargebacks directly through the card issuing bank without first raising a complaint with the merchant. This means a black mark on your payment processing record. Too many of those and you can expect your funds to be put on hold and your account terminated. Make sure your customer support lines of communication are open 24/7 and look for a provider who will involve the merchant immediately when a chargeback is raised. Doing so, will give you a bit more time and allow you an opportunity to resolve the issue quickly and efficiently. SecureGlobalPay is here to assist you and will show you how to get high-risk merchant services while also reducing your chargeback percentages.

 

What is a High-Risk Processor Merchant Account?

A high-risk processor merchant account is the type of high-risk account that businesses can use when considered high-risk by their existing payment processors or card issuers.

High-risk processor merchant accounts usually come with increased security features like 3D login verification, dual card verification, and a fund reserve to cover future risk and chargeback issues.

Loaded with extra fraud protection, high-risk merchant accounts are the best option for eCommerce businesses that often receive chargeback complaints from customers because they provide evidence that they never received the product they paid for.

High-risk merchant accounts have more security features than standard merchant accounts because the risk of fraud is higher with these types of businesses.

 

What is a High-Risk Merchant Processor?

High-risk merchant processors cater to businesses that sell products or services that have a higher risk of fraud. They always cater to business owners who have low credit scores or are just getting started. Many newer eCommerce merchants selling adult content, tickets for concerts, sporting events, and other activities (like online gambling) fall into this category.

A high-risk merchant processor is a type of payment processor that specializes in businesses that sell these types of goods or services. They allow merchants to take advantage of services such as high-risk credit card processing.

These merchant processors have a unique specialization in high-risk business types. They help promote increased security standards to protect both merchant and credit card processors from fraudulent transactions. If you’re a small business thinking about opening an online store and selling adult content, a high-risk merchant processor is the only way to go. 

High-risk merchant processors charge higher fees than standard low-risk retail payment processors as they require more security features like 3D secure login verification and breach liability protection.

 

How to Know if You’re a High-Risk Business ?

To know if you are considered a high-risk business and in need of a high-risk merchant account, you’ll need to first understand the criteria for what makes a business risky.

If you sell products or services that fall into one of these categories, there’s a good chance your business will be classified as high risk: – Adult content (pornography, toys, etc.) – Tickets for concerts, sporting events, etc. (online events with no physical location) – Cryptocurrency (virtual money that’s sent and received digitally without a bank account) – Online gambling (no actual product is exchanged like in poker tournaments) – Products that can be easily broken, stolen or not be FDA approved like (hygiene products, vitamins, etc.).

However, if you have no track record, have low credit, deal in high-level payments, etc., you can also be identified as a higher-risk merchant.

 

Credit Card Schemes and Fraud Protection with a High-Risk Payment Processor ?

Credit card companies like Visa and Mastercard have fraud protection tools in place for their customers and the credit card processors themselves. If a customer claims they never received a product they paid for, or if a card is ever used in a fraudulent transaction, credit cards have steps in place to minimize the damage.

When the credit card processor receives a chargeback, the amount is deducted from the funds available to pay merchants. If the credit card processor receives too many chargebacks from a specific merchant, they will terminate their contract with them.

There are three different credit card fraud protection tools that help credit card processors protect themselves and their customers:

– Address Verification System (AVS) – This system is used to verify the customer’s billing address. If the customer enters an incorrect address, the transaction will be declined.

– Card Verification Number (CVV) – This system verifies a customer’s card number. With online transactions, you will often see a box on the credit card receipt where customers are required to enter the 3-digit code found on the back of the card.

– Fraud Liability – This system determines who should be held responsible for fraud-related losses. In many cases, the loss is absorbed by the credit card processor or issuing bank depending on the circumstances.

 

Benefits of a High-Risk Merchant Account Provider

The primary benefit of a high-risk merchant account provider is the ability to assist merchants with accepting high-risk credit card payments. If you are a high-risk business and do not have a high-risk merchant account, you will be unable to accept credit cards. This often means you will not be able to scale your business as quickly as you would like. High-risk businesses that do not accept payments with credit cards are missing out on a significant portion of the market. To help ensure high-risk merchant success, merchants are looking to SecureGlobalPay for their expertise in assisting in all merchant categories for over 25 years. 

High-risk merchant accounts offer fraud protection for credit card processors and risk management for high-risk businesses. If a customer’s credit card is used fraudulently and the charge is challenged by the customer, the processor will investigate and often defend the transaction.

Protection and mitigation of chargeback issues by the payment processor can save funds and time for merchants.

 

When Do I Need A High-Risk Merchant Account?

You should consider a high-risk merchant account if you have a business that falls into the category of high-risk businesses. If you don’t accept credit cards without a high-risk merchant account, your business will have much less opportunity to expand outside of your local area because you won’t be able to accept online payments.

The most popular way to accept payments online is with a credit card. A high-risk merchant account and high-risk payment provider will allow you to accept credit card payments without having to use a third-party payment processor. If you are in the process of building an eCommerce business and you are not sure if you are a high-risk business, it’s best to be safe and assume you are. Also, if you try to open a standard merchant account but get denied because of your business industry category, you will have no other choice. A high-risk merchant account is your fallback.

 

How Does A High-Risk Merchant Account Work?

A high-risk merchant account works similarly to standard merchant accounts, except for the added verification required for payment processors and the additional levels of protection for merchants and processors.

You will be required to provide additional information about your business and may be required to supply some type of identification or proof that you are the owner of the business.

You can expect your account to be reviewed more thoroughly by a high-risk payment provider than a standard merchant account.

 

How Do I Open A High-Risk Merchant Account?

Now that you’re familiar with what a high-risk merchant account is, you can make an educated decision about which high-risk payment provider is best for your business. To apply for a high-risk merchant account with SecureGlobalPay, simply complete our online application.

High-risk merchant accounts are more expensive than standard merchant accounts. However, they are well worth the extra cost if you are planning on building a long-term eCommerce business, as they come with extra protection.

Each high-risk payment provider will have its own rules and requirements. Therefore, it is important to contact those you are considering to see what they can provide for your business in terms of payments and protection.

 

Choosing Between One of the Many High-risk Merchant Account Providers

Chances are, your application has already been rejected by one or more of the many merchant high-risk merchant account providers. Right now you may be starting to panic a little as you have no idea how to get a high-risk merchant account to accept bank card payments. This is not good and you need alternate solutions to accept payments while you look for that approval. 

There are high-risk payment processors like SecureGlobalPay that truly care about your business and offer alternative payment solutions like high-risk e-checks and crypto. Take the time to find the right high-risk payment provider as it will make all the difference in the long run.

After all, if you can’t accept card payments and don’t have the proper card payment system in place, your business could be in jeopardy

 

3 Key Ingredients in Finding the Top Merchant Processor for Your Business Type

Here are 3 important things to remember about high-risk merchant processing

1. Resist the temptation to grab the first deal that is offered to you – it could be disastrous.

2. The cheapest option may not be the best – cost alone is rarely the most important factor when choosing a high-risk payment service provider.3. Take the time to pick up the phone and talk to a live person. This will help you better understand how they run their operation and possibly if they are even worth your precious time.

 

Who are the Best High-Risk Merchant Account Processors?

The best high-risk merchant account processors are those that can provide the necessary resources, expertise, and access to card networks, payment processors, and financial institutions, and acquiring banks to help merchants accept high volumes of credit card transactions.

They have the knowledge and expertise to help businesses processes high-risk transactions, such as those with a large number of disputed transactions or those that are associated with higher levels of risk.

Successful high-risk merchant account processors are often those that handle large amounts of transactions and know how to mitigate losses while properly managing their customer chargebacks. These payment processors typically have secure front-end payment systems in place to help score their customers’ spending habits before they decide to purchase.

One of the most important factors to consider is whether or not the high-risk payment provider has a proven track record of providing high-quality services. The best high-risk merchant account processor will be able to demonstrate this by showing evidence of previous successful transactions and an impressive client portfolio.

Another important factor is the company’s fees. High-risk merchant account processors may charge higher fees to offset the risks associated with dealing with high-volume customers. Don’t trust high-risk payment processors that promise low fees as well.

Finally, it is a good idea to look at other factors such as customer support and security measures. A high-risk merchant account processor should be able to provide 24/7 customer support so you can always get in contact if you need any assistance.

 

Where do I Find the Best High-Risk Merchant Processors?

There are a few things to keep in mind before you begin the process of finding a high-risk merchant processor.

First, do they have a payment gateway for high-risk business? Every company has its own particular set of strengths and weaknesses that make it better suited for certain types of businesses. So, it’s important to do your research and find the right fit for your business.

High-risk merchant processors are a specialized type of processor that is designed to offer payment processing solutions for merchants who have experienced a significant loss in volume or revenue.

Their main focus is to protect their customers from fraudulent transactions, chargebacks, and other issues that can cause significant financial losses. While some may be able to provide lower rates than other processors, there are some things to keep in mind before signing up.

When choosing a high-risk merchant processor, you should make sure they have been tested and proven in the field.

You should also consider the size of their network, the security measures and controls they have implemented, and their customer support team.

It is also good to ensure that you understand which types of transactions they can accept before signing up.

To help with this, we recommend researching the different types of high-risk merchant processors and from there, choosing the one that best suits your needs. Once you’ve found the right one, it’s important to pick up the phone and talk to someone. If you feel comfortable with the knowledge they possess about your specific business type, it’s time to discuss things further. Always keep an eye on their rates and fees so that you can make sure they’re not overcharging.

Lastly, be sure to communicate regularly with your processor so that you’re aware of any changes in policies or processes that could affect your business or impact your processing fees.

 

How to Get a High-Risk Merchant Account Approved in the Shortest Amount of Time

Getting high-risk merchant services accounts approved in the shortest amount of time is all about finding the right payment service provider. Industry professionals that have been providing merchant services for many years have the experience and the relationships to help expedite your approval. Please keep in mind, there is no such thing as a high-risk merchant account instant approval.

 

Specialist Providers of High-Risk Merchant Accounts Deliver Excellent Service

Just as start-ups and newer mid-size merchants found it difficult to obtain finance back then, owners of businesses considered to be high-risk have had difficulty getting accepted for merchant accounts and payment processing.

The reason is really simple. Providers prefer safe, low-risk businesses because they have lower risks of fraud and chargebacks. Those are the two elements that cost banks and card processing companies money.

By studying these high-risk industries, these payment processors built financial models of potential risks and what level of charges would be required to cover losses. They then tailored their services by offering to take them on as merchants and will show you how to get a high-risk merchant account fast.

So providing merchant account services for riskier businesses represented an opportunity for savvy providers.

By studying these high-risk industries, these payment processors built financial models of potential risks and what level of charges would be required to cover losses. Then they tailored their services by offering to take them on as merchants and will show you how to get a high-risk merchant account fast.

 

Start Here to Find a Good High-Risk Merchant Account Payment Processor

SecureGlobalPay is one of the leading high-risk merchant account providers specializing in both domestic and offshore high-risk card processing. We have established a network of acquiring banks that accept businesses like yours. Accepting bank card payments for your hard-to-approve business has never been more important. Give the experts a call and let them show you how to get a high-risk merchant services account.

Our acceptance rates are high because of our multiple bank acquiring and merchant processing relationships. We take great care to match your business with a high-risk merchant processor that is familiar with your industry. That’s the secret to our success.

Start the process today. Click here to access our online application form. Alternatively, call 1-800-419-1772 to speak with one of our payment processing experts.