A merchant account is necessary for a business to process debit & credit card transactions of customers with ease. However, many banks don’t allow a business to get a merchant account if it comes under a high-risk category. High-risk businesses have to face various challenges when they want to get a merchant account that will affect their operations. Therefore, they need to know how to create a high risk merchant account at highriskpay.com because it simplifies the process to a larger extent. Moreover, a high-risk business can focus more on streamlining card payments with high efficiency after getting a merchant account.
High risk merchant account at highriskpay.com- Who is eligible to apply?
Businesses that are in the high-risk category are eligible to apply for a high-risk account at highriskpay.com that helps accomplish their goals. Some examples of high-risk businesses include subscription services, online gambling, adult entertainment, digital products, CBD, nutraceuticals, crypto or Forex trading, dating, debt collections, tour operators, etc. They require specialized payment processors who understand the nature of high-risk operations, and highriskpay.com specializes in providing an account that caters to the needs of high-risk merchants.
What is a high-risk merchant account?
A high-risk merchant account is specifically meant for industries that banks often consider “risky.” It refers to a business that has a higher possibility of chargebacks, irregular transaction patterns, regulatory complexity, fraud susceptibility, reputational considerations, etc.
How do banks determine high-risk merchant accounts?
Banks consider several factors to evaluate the risks and label a business under the high-risk category. Understanding them will help a business to make informed decisions.
Here are some factors that determine the high risks of a business.
1. High chargeback rates
Some industries, such as online dating, subscription services, and travel liability, tend to have high chargeback rates. This is because customers of those industries often dispute fees or charges, which leads to financial liability of processors.
2. Reputational considerations
Some payment processors often consider the reputation of a business and immediately reject it if its name is in the market, regardless of its liability.
3. Business model factors
A payment processor will evaluate a business model before offering a merchant account, and industries with delayed fulfillment have to face high risks.
4. Fraud susceptibility
Businesses dealing with high-value transactions come under the high-risk merchant accounts category. For instance, a store that sells electronics products needs a high-risk account.
5. Regulatory complexity
Industries that are facing strict or evolving restrictions are often categorized as high-risk businesses. Businesses such as firearms, CBD, pharmaceuticals, and adult entertainment need high-risk merchant accounts to process card transactions efficiently.
6. Bad credit score
Banks will check the credit score of a business before offering a merchant account. A low credit score or bad credit score can label a business as high-risk, limiting merchant account options.
7. Limited financial history
A business that has a limited financial history comes under a high-risk category because banks always evaluate the background.
What is highriskpay.com?
HighRiskPay.com is a payment processing company that specializes in serving businesses in the high-risk category. It guides merchants operating in challenging industries to open a merchant account with ease. The company makes online processing simple by addressing the essential needs of merchants.
Moreover, it offers relatively fast approval times compared to traditional high-risk merchant payment service providers. The service model offered by the company connects with merchants acquiring banks willing to accept high-risk processing. Rather than being a direct processor, it functions as an intermediary that handles everything with expert teams.
What are the key features offered by HighRiskPay.com?
Before creating a merchant account at highriskpay.com, it is wise to know the features with more attention.
Here are some features offered by the service provider.
1. Built-in risk management tools
HighRiskPay.com provides built-in risk management tools to monitor chargebacks, refunds, and suspicious transactions. It offers real-time alerts and flags unusual activities so that a merchant can act before banks get involved. Apart from that, a merchant will receive monthly reports that give ways to spot trends and problem areas. Simple dashboards help a merchant understand risk without the need for a financial expert.
2. Fast approvals and flexible underwriting
Getting stuck in the payment process can affect small businesses, and HighRiskPay.com is well-known for its fast approvals, sometimes less than a day. A human underwriter looks beyond the credit score to the actual business story. On the other hand, the merchant service provider offers flexible requirements, meaning even brand-new businesses or those with past issues will get fast approval.
3. All-in-one payment processing options
A high-risk account at highriskpay.com lets a merchant accept payments beyond just cards, giving ways to gain access to ACH, e-check, mobile payment, etc.
4. Security and regulatory compliance
Operating a high-risk business often involves legal and compliance issues, and the online platform uses industry-standard encryption to protect consumers’ data from theft and other potential threats. The continuous updates enable a high-risk business to meet the legal requirements in regulated fields. Also, compliance audits provide methods to stay ahead of issues.
5. Scalability technologies for growing businesses
A high-risk account at highriskpay.com offers scalability technologies for growing businesses. It provides features such as integration with major shopping carts and e-commerce platforms, detailed API documentation, and advanced reporting options for financial planning.
6. Dedicated support from industry experts
At HighRiskPay.com, every merchant account comes with direct access to a dedicated account manager. It will help get fast answers from someone who knows the risks and regulations of a business. Another thing is that a business can prevent shutdowns or payment holds.
How to apply for a high risk merchant account at HighRiskPay.com?
Businesses applying for a high risk merchant account at HighRiskPay.com should follow the below steps.
1. Determining whether a business fits the high-risk profile
A business should determine whether it fits the high-risk profile after doing complete research. It should gather the details of businesses that are in the high-risk category.
2. Preparing the required documentation
Since high-risk business requires transparency and accuracy, it should consider preparing the necessary documents. Some of the documents needed for the account include a business license, employer identification number (EIN), ID proof, financial documents, and business type document.
3. Submitting the application online
A business can submit the application online by providing the details properly. It should make sure that the provided information is accurate to avoid quick rejection.
4. Underwriting approval process
A high-risk business should undergo the underwriting approval process, which is the key step in getting a merchant account. The underwriting team will perform the procedure based on the business model, product or service, website compliance, chargeback history, banking history, potential risk exposure, and expected transaction volume.
5. Integrating a payment gateway to accept payments
After approval, a high-risk business should consider integrating a payment gateway to start accepting payments. Setting up a proper high-risk merchant account will reduce fraudulent activities, lower chargebacks, and keep the account in good standing.
6. Managing payments, fees, and reserves
A high-risk business should manage payments, fees, and reserves after creating a merchant account.
Why should high-risk businesses choose HighRiskPay.com?
HighRiskPay.com is a dedicated high-risk payment processor that offers merchant accounts for challenging industries.
Here’s why a high-risk business should choose the platform.
1. Advanced fraud prevention and chargeback management
The online platform provides advanced fraud prevention and chargeback management that help minimize disputes and potential revenue loss.
2. Expertise in high-risk industries
The high risk merchant account at HighRiskPay.com has extensive experience working with experts who will help understand the unique challenges faced by a business. Apart from that, they will offer solutions designed to address industry-specific needs.
3. Streamlined application and approval process
The merchant service provider offers a straightforward application process with approvals within 24 to 48 hours.
4. Comprehensive payment processing solutions
The high-risk merchant account on the platform provides secure processing for major credit and debit cards as well as alternate payment methods such as ACH, eChecks, etc.
5. Accepts bad credit scores
Even if a business has a bad credit score, the company will still approve the account based on stability and history.
6. No application or setup fees
The merchant platform involves no application or setup fees, allowing a business to reduce upfront costs.
7. High approval rates
The platform has a history of high approval rates and approves nearly all qualified businesses even if other companies have rejected them.
8. Fast application turnaround
The merchant service provider approves an application within 24-48 hours after submitting proper documentation.
9. Dedicated customer support
The high-risk merchant account platform offers dedicated customer support to address any issues promptly. It aims to address the problems of business owners regarding the account and other details.
What are the best practices to follow for managing a high-risk merchant account?
1. Staying current with compliance and documentation
A business should ensure that its website is fully compliant by including clear prices, refund policies, terms, and customer support. Furthermore, it should submit the latest documents for quick approval.
2. Maintaining transparency about product or service
It is important for a business to maintain transparency about a product or service while submitting the details.
3. Understanding the revenue model
A high-risk business should understand its revenue model to explain how the payment processing works and manage customer satisfaction.
4. Creating clear refund and dispute policies
Confusing policies will lead to high chargebacks, and a business should consider posting a refund policy at checkout. Responding to refund requests quickly before they turn into chargebacks will help avoid disputes. Tracking the dispute history provides ways to adjust the policies if needed.
5. Staying flexible and adapting when a business grows
High-risk businesses often face changes such as new products, regulations, or even whole payment trends. They should consider reviewing their legal updates each quarter.
6. Maintaining a good credit score
A high-risk business should always consider maintaining a good credit score that will help minimize complications in the underwriting process.
What to expect from high-risk merchant account pricing?
A high risk merchant account at HighRiskPay.com comes with different costs, and a business should consider them with more attention.
1. Transaction fees
Each card sale is often charged with a flat fee or percentage, which is usually a little higher than traditional accounts.
2. Monthly account fees
The monthly account fees on the platform are $9.95 for all high-risk businesses, which helps cover fraud monitoring and support.
3. Gateway fee
If a business uses a virtual terminal or online gateway, then it can expect an additional fee of around $10 per month and $0.10 per transaction.
4. Chargeback fees
The merchant service provider will charge a chargeback fee of $20-$30 per case if a customer disputes or refutes a payment.
5. Rolling Reserve
It typically involves 5-10% held for 3-6 months depending on risk level, and a business should review the same carefully.
Understanding contract length and terms
A high-risk business should understand the contract length and terms before setting up a merchant account.
1. Contract lengths
A business should always watch for the automatic renewals because every merchant service involves 1- to 3-year contract lengths.
2. Early termination charges
Leaving before the contract ends can trigger charges, often a flat fee or even a lump sum of months remaining.
3. Minimum processing
If the minimum processing volume falls short, a business has to pay extra fees.
What are the drawbacks of HighRiskPay.com?
- Higher fees than standard accounts
- Limited dashboard and analytics
- Reserve requirements
- Mixed customer support reviews
- Strict underwriting requirements
- Risk of account termination
- High chargeback rates can lead to stricter account conditions.
Conclusion
HighRiskPay.com is the best platform for high-risk businesses to create an account for ensuring smooth transactions. However, knowing how to apply for a high-risk account at highriskpay.com will help operate a business without any hassles. Moreover, a business can achieve high success rates after getting approval from the service provider. The merchant account offered by the platform is suitable for all sizes of businesses to lower complications in the merchant account creation process. On the other hand, reviewing all fees and terms provides ways to make informed decisions.
