08 Dec

By ipaytotal

Category: best high risk merchant account provider, best high risk merchant services, Chargebacks, Fraud Prevention, high risk merchant account instant approval uk, high risk merchant account provider, high risk payment gateway uk, online payments

When You Need to Change Offshore High Risk Merchant Account Providers Comments Off

When You Need to Change Offshore High Risk Merchant Account Providers


the processing world, some business types and industries are considered “too risky.” High risk merchants are often denied a merchant service account with many processors. Keep in mind that while you may be considered a high risk merchant account with one processor, another may not put you in the high risk category. This depends on how strict or lenient the approval guidelines are.

Acquirers classify merchants into risk categories, usually just low-risk or high-risk. The risk profile a merchant gets is predominantly based on the goods and services sold. These are sectors that have an innate high-risk for chargebacks, be it due to stolen cards, non-delivery of goods, unsatisfactory goods, or unclear billing descriptor.

Credit Card Processing and Offshore Banking

When working with a credit card processing provider that specializes in high risk merchant accounts, your application will most likely be approved. This typically involves offshore banking and an offshore merchant account.

Since the merchant account provider and the processor assume the majority of the risk during a transaction, they charge fees for their services on top of the interchange fees that the card networks charge. As any smart business that takes on risk would do, these companies try to their minimize risk by imposing higher premiums on merchant accounts that are deemed risky.

Typically, a high-risk merchant account is a business or an industry that is notorious for chargebacks and fraud, borders on the legality or is considered risky by association.

High Risk Merchant Account Alternatives

Every single type of business requires credit card processing that is reliable and cost-effective. However, there are very few high risk merchant account providers and to make matters all the more difficult even fewer high risk merchant account providers that do give financially savvy high risk credit card processing that you can depend on. The purpose behind this is the field of credit card processing is mainly concerned about the unpleasant possibility of chargebacks. In addition, there are explicit types of organizations that are truly linked with more chargebacks. As credit card processing is certainly not a high-margin industry, all the merchant account organizations don’t have some other choice however to respect every organization that works in an alleged high risk field as a high risk business, irrespective of the actual chargeback risks presented by the individual organization.

This implies in the event that you have applied to open a merchant account for your organization and your organization falls within this high risk category, there are very high chances   that your application will be denied by conventional low risk credit card processing businesses. However, it isn’t all doom and gloom. You can rest guaranteed as there are in a reality some great businesses that focus on high risk merchant accounts.

How Do Merchants Get Defined As High Risk?

There are several characteristics that explain high risk merchants and to make things more complicated the field of high risk e-commerce is continually evolving. If a bank characterizes an organization as high risk, it can in actuality be a result of a wide range of things for instance:

  1. a new business that does not have a long credit card processing history
  2. an industry that has gotten a bad reputation in light of high rates of returns and chargebacks
  3. services or products that depend on membership, (for example, magazines or online dating)
  4. any merchant who has had a bank terminate their merchant account
  5. a past filled with bankruptcy
  6. bad credit
  7. your organization is focusing on a specific region or country
  8. high-volume organizations like nutraceuticals

    Local And International Solutions

A conceivable solution to your issues is the team at iPayTotal. They manage with reliable sponsor banks that offer both local and offshore high risk merchant accounts. If you are keen on opening a domestic high risk merchant account, your business operations can be based over the globe, yet you should have the following:

  1. a company entity (can be offshore or in the United States)
  2. a company rep who is either based in the United States or abroad
  3. a business bank account.

If you are keen on opening an offshore high risk merchant account, your organization can operate from anywhere and there is no requirement for a UK or US rep. However, you will have to generate at least $15 000 (USD) monthly in sales to qualify. In addition, just MOTO or online transactions are permitted (no card present swipes).

iPayToTal can provide merchant accounts to a wide range of high risk companies (whether you are a startup or an existing business).

This category of high risk usually includes companies that:

  1. have been denied on past events
  2. have been dropped by other processors
  3. encounter high chargebacks or are viewed as a bad credit merchant
  4. have long lead times before delivery
  5. have large tickets.

    If you decide to partner with iPayToTal, the following benefits are just some of the perks that your high risk business will get to experience:

  1. in-house expert underwriting
  2. discounted rates that normally range from 1.9% to 7.95%
  3. authorization rates that range from $0.20 to $1
  4. monthly costs that can range anything from as little as $5 per month to $210 per month
  5. no application fee
  6. instant approvals
  7. acceptance of multiple currencies as well as deposits
  8. compatible with the majority of gateways as well as shopping carts
  9. compatible with more than 50 processing gateways
  10. eCheck processing
  11. 3DS processing
  12. prevention of chargebacks
  13. assistance with regards to integration with more than 100 shopping carts
  14. acceptance of MasterCard/Visa/American Express
  15. MOTO accepted
  16. swipe accepted

So, if your high risk company operates within the gambling, software, travel, legal, CBD or adult entertainment category, you will be very happy to know that you can turn to the team at iPayToTal.

Some of the industries for which iPayToTal provides payment processing services are:

  1. Internet gambling
  2. Adult entertainment
  3. Tech support
  4. Pharmaceuticals
  5. E-cigarettes
  6. Online dating
  7. Online casinos
  8. CBD Products

    What Happens When a Business is Classified as High Risk

When a business gets marked high risk, merchants still can acknowledge credit payments. However, these organizations are exposed to higher processing rates. Furthermore, banks can ask for a reserve on a business’ credit card processing.

Sometimes, high-risks merchants can inspire banks to reclassify a business. In any case, it is difficult considering the many elements that prompted the characterization. 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 under 1% of a business’ aggregate transactions.

High Risk Merchant Services Financial Consulting And Management

Every company knows about the significance of payment processing, particularly online organizations. There is a wide range of alternatives when a business goes searching for a payment solution. Some organizations effortlessly discover merchant accounts while others are not all that fortunate. High risk merchants are among the merchants that are considered “not all that fortunate.”

Merchants classified as “high risk,” have an unending clash of; finding, setting up and keeping merchant accounts. Merchants will utilize different accounts to spread their processing volume (and risk) if one of the accounts is closed. The trouble is for merchants who require consistent support with their payment processing solutions.

The payment processing industry is extremely confusing and continually changing; from the wording to the innovation and administrative prerequisites. High risk merchants require a payment processing proficient that will help control them through this each evolving industry. If your team requires complete guidance with finding and coordinating new processing solutions or only an additional processing solution, iPayToTal can help. Payment processing consulting meetings are available by; email, phone, Skype or face to face.

Offshore Merchant Account

This can mean one of two things: either a merchant account with an offshore bank (acquirer) or a merchant account with an onshore bank held by an offshore entity.

The most common is the former. The latter is not quite as common, since onshore banks prefer to deal with merchants in more reputable jurisdictions than the jurisdictions where offshore companies are mostly registered, such as Seychelles, Belize, British Virgin Islands, and so on.

There is a common misconception that an offshore merchant account is automatically high-risk. This is not the case. However, merchants who seek offshore processing are usually doing it because offshore acquirers are far more lenient when it comes to issuing merchant accounts and what type of goods and services can be sold, due to more relaxed laws and requirements on the merchant. This is one of the greatest advantages of having an offshore merchant account.

You may also be subject to stricter banking secrecy with an offshore bank than you would otherwise.

Credit Card Processing and Offshore Banking

When working with a credit card processing provider that specializes in high risk merchant accounts, your application will most likely be approved. This typically involves offshore banking and an offshore merchant account.

Offshore Bank Merchant Account Rates

Often, high risk merchants will pay high risk rates. However, we have found that we save 98% of vendors on processing fees over what they are currently experiencing whether they have low, medium or high risk needs. Be cautious because there are many providers who will automatically approve applicants with predatory contracts and outrageous rates. Always check your contract and see if there’s standards for minimizing the transaction rates. Larger reserves, rolling reserve agreements and other types of risk minimization can help an applicant obtain the best rates possible.

Do I Need of an Offshore Bank Account?

A business can be labeled high risk due to its industry, an owner can have bad credit, the business can be owned by a foreign business entity with transactions inside the U.S., the product or service could be illegal in some local, state or federal laws, even questionable marketing or sales tactics can mean that an offshore merchant account is the only option to process credit cards online. In order to have one, most merchants require you to have a bank account in the jurisdiction where the credit cards are processed. That means setting up an offshore company and offshore bank account.

Businesses That Need an Offshore Merchant Account

Most people believe that high risk merchant accounts are only for online casinos or pharmacies, however with today’s lending guidelines and financial account requirements, a lot of trusted brands and online businesses are “high risk” and require a specialized credit card processor.

When You Need to Change Offshore High Risk Merchant Account Providers

Offshore High Risk Merchant Account Providers

Occasionally offshore high risk merchant account providers are not what they seem to be. We have been at the high risk credit card processing space and the landscape carries on change and develop with the new rules, put forth from the major card issuers and governments. Staying on top of those changes is paramount to staying applicable in high risk payment processing. Hence, retailers looking for a change in payment service provider is more common today than ever since the environment is harder and choices with a change in. Reasons can be several, they may be complicated or the merchant thinks they may get better rates which is why they support an offshore merchant account solution to expand.

Why Do Merchants want To Change Offshore High Risk Merchant Account Providers?

Too few solutions: Perhaps you have outgrown your payment service provider, who can’t offer you an offshore merchant account solution to expand and accept.

Expand to other nations and regions: You’re just a domestic merchant, but want an offshore merchant account solution to expand and accept additional transactions from other countries. Seeking company registrations: With new rules from the European Union, retailers are needed to register their businesses inside the EU.Our first piece of advice is the most crucial without question. Whilst a merchant might not be pleased with his/her offshore high-risk merchant account supplier, the merchant agreement plays a vital role.

What’s Involved When Changing Providers?

From our standpoint, a few hazards may be found by retailers.

Withheld rolling reserve: The payment processor can withhold the rolling reserve for a period of 180 days to cover up any future refunds or chargebacks. This is a very common practice.

Withheld funds: Several banks can hold your funds, utilizing for chargebacks in increments to cover.

Exit fee: Early departure or termination fees may be imposed on merchants as per the agreement which they have signed with their payment processor. Again, it’s a typical practice in payment processing because obtaining banks and merchant account providers will need to safeguard themselves. The penalties for opting out of a merchant account contract vary from bank to bank but may be severe. We recommend choosing a safe route – reevaluate your requirements while seeing the terms of your contract. For retailers who want to start a high-risk merchant account, maybe your PSP has a partnership with another supplier that may accommodate you.


We review your business details and select appropriate banking partners amongst our network of acquiring banks and regulated EU payment institutions. We work closely with our merchant throughout the application process without any upfront fees. Our goal is to have our Merchant’s account approved as soon as possible with the best rates. Typically within 7-14 days, our Merchant’s account is ready to be integrated on the website with a selected payment gateway or a Virtual Terminal to accept credit card payments.

Share this Post!

Tags: , , , , , , , , , , , , ,

Post Calender

December 2018
« Nov Jan »