It’s unfortunate that not all merchant account services are created equivalent. Most of the merchant services providers will charge more, and force different terms and limitations on organizations working in industries that they consider to be high risk. These could be industries where the threat of legal action is more articulated, where the law firmly controls and manages the business or where unstable markets make it difficult to anticipate business and delivery of receivables on an everyday basis. In most of the cases, the problems that organizations face when they are looking for a merchant services provider are frequently because of the way that they are relatively new organizations. A few enterprises, nonetheless, are quite often considered to be high risk – or are even blacklisted altogether. In case you’re in one of these industries, you may end up battling with getting charge card payments. Below is the list of industries that are almost always considered high risk merchants.
Advocates/Law Firms/Attorneys Or Any Company Or Individual Connected In Providing Legal Services
Financial Institutions cease from working with this industry primarily because they realize that the merchants will dependably have counters for chargeback and refunds. It is hard to have a communication with the merchant in the event of chargebacks refunds or any penalties as the merchant from this industry will have a better knowledge of local laws and business laws. Individuals from this industry likewise make many inquiries before signing the Merchant Application form, and the majority of the circumstances the financial institutions would prefer not to change the service terms recorded in the agreement.
Travel Agencies For Travel Websites
This industry is viewed as high risk because there are possibilities that the client will cancel the ticket and for ask a refund. The acquiring banks or the PSP take incredible measures to distinguish the correct merchant to be on-boarded from this industry type. Gone are the days when individuals used to create travel website and use to get merchant accounts. In the present situation, a large portion of the PSP or acquiring banks will state no to this industry. In case if they say yes they would put conditions like the service must be delivered within a span of 2 months or a maximum of 3 months. They will likewise put a moving Reserve of 10% to 20% and will likewise secure themselves by putting a hold for 7 to 14 days.
To Know more Read our article on MERCHANT ACCOUNT FOR TRAVEL INDUSTRY
Medicine sales carry health risk and that is the reason they are in the high-risk category. A few merchants that offer Non-Controlled prescriptions may get e-check arrangements. They should have supporting documents to speak to the lawful status of the organization.
To Know more Read our article on ONLINE PHARMACY MERCHANT ACCOUNT
The car dealership is another industry which is viewed as high risk. The reason why it is considered high risk is primarily due to the ticket size as the Cars are expensive. banking institutions always prefer working with merchants that offer the product and services at lower ticket size.
Auction Services And Websites
The Auction Services And Websites is another industry which is viewed as high risk. The potential risk of onboarding a Merchant in this class is that if someone after the auction may claim the product. Additionally, the auction platforms might be utilized by anti-social elements as the actual cost of the product can never be identified. Individuals can set any cost for the item and sell it. This business model can be utilized for tax evasion too.
This industry is loaded with light music and happiness, yet at the same time, it struggles to discover a payment processor the main reason is that the government in the vast majority of the nations are not perfect with this business model. There have been instances where several criminals have spent stolen money at casinos. The financial establishment needs to focus core competency by onboarding just those merchants which draw in most maximum profit for the financial institution and the least risk for them.
The construction industry has turned out to be high risk after the subprime crisis. Banks are hesitant to offer merchant account solution for construction companies on the grounds that the development organizations are subject to the payments from the builders. The real estate market is exceptionally unpredictable. Banks like to remain out of any unpredictable market.
Financial Firms/Accountants/Chartered Accountants
Most of the merchant account providers do not like offering payment processing solution to this industry due to the higher ticket size involved. In this business, the majority of the accounting firms do very high-value transactions. Financial Institutions need merchants who offer smaller services at smaller ticket size and have low return/ charge-back ratio.
Call center agents influence the client to make buys. They also make false commitments and guarantees to the clients to generate sales. This sort of conduct results in high returns. Returns are Taboo in the Payment Processing Industry.
Money Transfer Services
It is sometimes very challenging to get a solution for this industry type because the financial institutions fear the risk of money laundering.
The reason that adult entertainment is viewed as a high risk for merchant services providers that lot of them are membership-based services, which require that the client pays on a minute-by-minute basis. They also, like gaming, process a large number of transactions and generally have little to no credit card processing history.
Cryptocurrency has seen its ascent, and now it is going down quick. Individuals who put resources in cryptocurrency are having a terrible time because they cannot sell it and they are losing their money. Apart from the unpredictable nature of cryptocurrency, there is one more issue which is used a lot by cybercriminals.
Numerous dating sites cheat people by making counterfeit profiles. The risk level is very high in this industry. Some offshore providers may at present offer an answer for the same.
If you understand the risk level of the business then it will be quite easy to apply for a merchant account for new business. You will save a lot of time and will not face declines.
Feel free to contact us so that we can evaluate the possibility of providing some payment processing solution for your high-risk business. In case of any doubt, iPayTotal is here to help. You can visit our WEBSITE to connect with highly experienced and well-educated team, with more than a decade of experience in the industry.