In the event that your business is considered as a high risk merchant, you definitely know that it is so hard to obtain a reasonable payment processing account. High risk businesses often get declined merchant accounts from certain payment processors and if they are they are accepted, they’re charged significantly higher rates than different organizations. All in all, why is high risk credit card processing so costly? what steps would you be able to take to pay less for payment processing?
High Risk Merchant Account Rates
Merchants are assigned either in the high risk or low-risk category by credit card processors. Since most processors select to work with low-risk merchants since they’re not as risky, there aren’t many merchant services that work with high-risk merchants.
A payment processor won’t acknowledge you if they think you pose a greater risk of losing them money. They’ll decline your business write type altogether and accept nobody from your industry Or if they do acknowledge you, some processors will raise your rates and attach extreme charges to balance out the risk you pose. That is the reason high risk credit card processing is so costly.
Why are merchants considered high risk?
In most cases, it’s because of the following characteristics;
- Little or no credit card processing history.
- Bad credit history
- Recurring payments acceptance.
- Borderline illegal businesses
- Multiple currency acceptance.
- Potential legal and financial liability
- Questionable sales and marketing tactics
- Excessive chargebacks or fraud incidents
Indeed, even how you process payments and sales methods can decide if your business is considered high risk or not. For instance, if you run a block and-mortar with an EMV terminal, the chances of fraud occurring are negligible in light of the fact that the client’s card must be available. What’s more, since the client is available, they can debate any charges face to face before their card is charged.
How to Obtain a High Risk Merchant Account
If you’ve been denied a merchant account from various processors, don’t lose hope. There are many providers that specialize in high risk merchant services, so they’re well on the way to approve you. Those accounts may very well be at higher rates.
One thing you should remember is that while you might be viewed as a high risk merchant account with one processor, another processor may not place you in the high risk category. It relies upon how strict or tolerant approval guidelines are for every processor. On the off chance that you like what you see from a processor during your search, you ought to apply for their services, at any rate, so you can make sure you’re getting the best rates for your business.
Tips to Lower High Risk Processing Costs
Avoid Preset Limits.
Organizations that represent considerable authority in high risk credit card processing will frequently give you an account with preset limits. This looks great to businesses simply in beginning. But, once your business starts to run successful and process a higher volume of transactions, the provider will charge a penalty fee if you exceed the preset limit. This will quickly reduce your overall revenue, so it’s essential to get a merchant account with an unlimited transaction volume. When you think about various payment processors, ensure you find one that allows you the flexibility to develop your business, regardless of whether it’s high risk.
Read Your Contract.
Most processors will compel you to sign an agreement with them. You should always read the whole contract before you sign your name. Ask as many questions as you need about your merchant account, so you get a reasonable comprehension of what everything implies. Pay close attention to features, limitations, restrictions, and termination fees. Or choose a processor that doesn’t lock you into a contract.
Carefully Select A Processor.
Search out a reliable and trusted merchant account provider that will work with your business. Despite the fact that you’re viewed as high risk, that doesn’t mean you should agree for less than average services and higher rates. Pick a payment processor that will negotiate terms with you, so you can receive the solutions your business needs from a credit card processor. Look into payment processor reviews to see what different organizations have been saying in regards to each prospect.
Get The Best Processing Solutions You Need.
Your plan with any processor ought to incorporate the solutions you need to run your business for fair prices. This implies you can acknowledge the types of credit and debit cards you need without various fees based on the brand of credit card. You should also receive the right terminals and solutions for your business at affordable pricing. Try not to settle Compare merchant account costs to see which rates, services, and solutions work best for your business.
Security Is A Priority.
Secure payment gateways and virtual terminals are a basic segment to search for when searching for a payment processor. Guarantee that all transactions made online are protected by encrypted server transactions. backed by large security and technology companies to ensure all their accounts are safe and transactions are secure.
Online Viewing And Reports.
Due to today’s innovation, there is rarely any high risk payment processor that don’t allow real-time reviews of sales reports. Therefore, your processor should offer online viewing and reports, rather than traditionally mailed transaction reports. That way, you can keep track of your transactions and reports at your convenience.
On average, Ipaytotal saves businesses over 40% on credit card processing when they switch over because we offer merchants access to direct cost processing— no fees, no markups and no contract. To know more just fill out our short form and we’ll get back to you and help you save time, give a brief comparison with several multiple merchant account providers, save money i.e., find the best pricing with respect to your particular situation, even if you’ve been declined payment processing before.