What Makes a Business Risky?
Every day, banks turn down online merchants that have excellent credit scores, good reputations, and solid revenue streams because they don’t have bricks-and-mortar businesses or enough assets. Banks classify these companies as high-risk merchants because there is a greater chance that these businesses disappear or go bankrupt before they pay back their debts.
Traditional financial institutions also don’t like to work with businesses, such as online dating, auction, and gambling sites, adult entertainers, telemarketers, and web-hosting services. Banks turn them away their rates of failure are higher and they sell what they consider questionable products or services.
It’s simple. We take the risk when banks won’t. Fill out an online application today and get approved.
Choose Our High-Risk Merchant Account Experts
Our team at SecureGlobalPay works hard to help national and international businesses process credit card payments quickly and efficiently.
- ACH Processing
- Business Funding
- Chargeback Dispute Resolution and Prevention Programs
- Instant Check Processing Solutions
- High-Volume Payment Solutions
- Merchant Cash Advances
- Mail Order/ Telephone Order (MOTO) Processing
- Online Payment Gateways
- Point-Of-Sale (POS) Solutions
In addition to having significant experience working with high-risk merchants, we also maintain a positive reputation because of our fair, customized pricing options and quality customer support.
Ready to Process Credit Card Payments for High-Risk Merchants
At SecureGlobalPay, we believe every business deserves a chance to thrive. That’s why we help domestic and offshore high-risk merchants process credit cards.
We provide credit card processing to all businesses, including these industries:
- Adult Entertainment
- Credit Repair
- Tech Support
We like to give all businesses a chance, even those with less than perfect credit or past bankruptcies. Additionally, we work with startups with little or no credit history, companies that were hit with chargebacks and returns, and merchants that had accounts terminated by banks.
All client information is kept secure and confidential and we streamline the application process, making it simple and easy. Our high-risk merchant account provider can get credit card transactions processed online in no time. Fill out an application today.
Reasons Merchants are Labeled High-Risk
A bank’s underwriting guidelines determine whether a merchant is a high risk. Therefore, each financial institution or processor calculates risk differently. Basically, chargebacks and fraud determine risk. The more likely a business is expected to have a large volume of chargebacks, the greater the risk.
For instance, travel sites are classified as high risk because they are more vulnerable to cancellations due to outside factors, such as weather. Adult entertainment is another industry that accrues numerous chargebacks. It is not unusual for customers to use adult entertainment sites and then, ask for a refund, claiming they never visited the sites. Many other types of businesses, such as gambling, nutraceutical, online dating, and credit repair sites, also are considered high risk due to the likelihood of more than typical numbers of chargebacks.
Though one factor alone likely will not determine whether a business requires a high-risk merchant account, these factors influence the decision:
- Business Location
- Business Size
- Credit History
- Credit Card Processing History
- High Chargeback Ratios
- Type of Industry
- Whether a Business Exclusively Operates Online
High-Risk Versus Low-Risk Merchants
Chargeback thresholds are what sets high-risk and low-risk merchants apart. Every processor has a chargeback monitoring program. When a low-risk merchant enters a program, it is given time to fix any problems before they are subjected to excessive fees.
High-risk merchants are considered fee-eligible immediately. Excessive fees are charged each month a high-risk merchant is in a chargeback monitoring program. Typically, chargeback fee rates are greater for high-risk merchants than others.
What Happens When a Business is Classified as High Risk
When a business gets labeled high risk, merchants still can accept credit payments. However, these businesses are subjected to higher processing rates. Additionally, banks can request a reserve on a business’ credit card processing.
Sometimes, high-risks merchants can get banks to reclassify a business. However, it is not easy considering the many factors that led to the classification. A positive credit card processing history of at least six months or a small number of chargebacks and refunds can trigger a reclassification. Banks expect a chargeback rate of less than 1% of a business’ total transactions.
If you are high risk, take the time to fill out our High Risk Merchant Account application below!