High-risk industries need certain solutions in order to be successful. Industries considered high risk include the gaming, online gambling, pharmaceuticals, nutraceuticals, travel, marijuana, adult products, Forex, among others.
There is a reasonable explanation why high-risk industries are considered high risk by banking institutions and card companies. The general reason is due to the nature of the business, which may be associated with something taboo or, in recent years, illegal, such as gambling or the sale of hemp or marijuana oil.
There is another reason why high-risk industries are classified as such, which might also include the ratio of chargebacks such businesses receive. Another major reason is the susceptibility a business has to fraud.
Chargebacks are like requests for refunds. In an industry in which refunds may be recalled often, leads to the ratio increase of chargebacks marked against a business’s account. Banks taking note of such chargebacks will generally refuse a business the chance to apply for a merchant ID (MID) and become a merchant account holder.
High-risk industries, however, absolutely need to have a merchant account in order to operate online and acquire better and wider business via the internet. However, since traditional banks rarely offer a high chargeback ratio business the chance in becoming a merchant account, such industries need to search for payment solutions from other sources.
Although these industries need to survive, it is understandable why banks turn down high-risk businesses: the numerous chargebacks must incur some fee over and over again, making the reliability and sustainability of a high-risk account not feasible for a traditional bank to back.
Solutions for a high-risk business
When seeking a solution, which indeed means seeking a reliable and suitable bank to back your high-risk business and provide a card payment solution to your business with a payment gateway that is secure, it is paramount for businesses that are high risk to consider a payment solutions company that can indeed offer a total solution to the following needs:
_Chargeback ratio reduction
_A suitable acquiring bank
_A card company
_A secure payment gateway
_Fraud prevention tools.
The good news is that although there are sub-standard payment solutions companies out there, iPayTotal, a leader in the payments industry, not only in the UK but with offices all over the world, offers a truly total solution for high-risk businesses wanting to apply for a high-risk merchant account.
With the five points mentioned above, being the needs of a high-risk business, iPayTotal has the experience, tools, staff and expertise to offer a total solution, which comprises great ways to reduce chargebacks, many offshore acquiring banks to support your high-risk merchant account, partners with card companies such as Visa and Mastercard, anti-fraud tools and iPayTotal’s own-designed payment gateway, secure and ready to be integrated into your website, giving your customers the confidence they need to purchase online, safely.
Moreover, choosing iPayTotal as your high-risk payment solutions company, your business will benefit from a 24/7 support team for any of your queries. What’s more, the entire underwriting process is performed within iPayTotal, offering a streamlined and easy way to obtain a high-risk merchant account.