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HIGH RISK MERCHANT ACCOUNT

We at iPayTotal Ltd. specialize in High Risk Merchant Account, High Risk ACH processing, and High Risk merchant services. We approve practically every business type, even if you have been turned down for payment processing. With more than a decade of experience, our team is here to help. Even if you have been shut down by your current processor, we have a high risk merchant account solution for your particular situation. We’re available to answer any questions and provide ongoing continued support for our valued customers.


In this digital era, if you want to make your online business successful you need to facilitate your customers a payment method that enables your customers to complete online payments for the goods and services purchased in quickly and safely manner. The major card networks (Visa, Mastercard, Discover, and American Express) charge interchange fees to utilize their system and the Merchant Service Providers (MSPs) charge processing fees to associate the card issuing bank to the acquiring bank through payment processors like iPayToTal. Since the high risk merchant account provider and the processor expect most of the risk during a transaction, they charge fees for their services as the interchange fees that the card networks charge. As any smart business who takes risk would do, these organizations attempt to reduce their risk by forcing higher premiums on merchant accounts that are considered risky.


Generally, a high-risk merchant account is a business or an industry that is famous for chargebacks and fraud, borders on the legitimateness or is viewed as risky by affiliation. But there is no need to worry. We will dive into the details of what all that implies in no time, so continue reading.

Looking for a reliable high risk merchant account provider?

Not all high risk merchant account providers assess risk in the same way. While some might consider you to be very high risk and make it difficult for you to obtain a merchant account on reasonable terms, others might treat your business as being just a medium risk and be able to provide you with competitively priced merchant services.


iPayTotal caters to the needs of high risk businesses, helping them boost sales and generate revenues using specialised high risk merchant account. Due to the added risk factor of high volume sales, potential chargeback and refunds involved, high risk businesses have certain demands that need to be met with. iPayTotal, unlike many high risk merchant account providers, is willing to provide such merchants with high risk merchant accounts because we understand the risks involved.

More about High Risk Merchant Account

Merchant account providers consider certain business sectors as being high-risk because of the proportion of charge-backs, cancellations, and non-authorizations of payment that occur during the day-to-day running of the business. For example, businesses that relate to travel are considered high risk, as factors such as the weather, the inclination of travelers to change their travel plans, and the potential for cancelled flights result in a higher than average proportion of charge-backs.


Merchants of high risk businesses like online casinos/gaming, pharmacies, travel industry and adult service providers don’t have to worry about banks and credit card processors giving them a difficult time any more.iPayTotal, unlike many high risk merchant account providers, is willing to provide such merchants with high risk merchant accounts because we understand the risks involved.


Although iPayTotal is happy to work with High-Risk Merchant Account holders, there are some special factors involved with this type of underwriting. There are requirements the merchant must fulfill. Please contact us to know more.

Basic

  • Is your business considered High Risk ?
    • Businesses with higher than normal chargeback rates (such as travel agencies), businesses with age-restricted items (like tobacco sales) and other businesses that are perfectly legitimate and legal. Individual businesses can also be considered higher risk even if they aren’t in an overall high-risk industry.

      Not all high-risk businesses are considered high risk because of their industry. In addition to particular industries, individual businesses may be considered high risk for factors including poor personal credit; inclusion on the Terminated Merchant File (TMF or MATCH list) for processing misconduct, non-payment, or fraud; high dollar value transactions with no business history; high dollar custom products; large number of international transactions.

  • High Risk Industries
    • Industries often considered to be ‘high-risk’ include, amongst others:

      alcohol
      tobacco and electronic cigarettes
      drugs and drug products (including prescriptions)
      nutraceuticals
      airline, travel, tourism and lodging
      debt management and collection agencies
      payday loans
      gambling
      foreign exchange (Forex)
      e-wallets
      pyramid selling
      dating and escort services
      adult entertainment
      timeshares and holiday clubs
      tech support
      money-making products and services
      charities
      monthly memberships and subscription services
      insurance
      jewellery
      software
      1-800-type chat sites
      Airlines or airplane charters
      All sexually-oriented or pornographic merchants
      Annual contracts
      Antiques
      Attorney referral services
      Auctions
      Automotive brokers
      Bankruptcy attorneys
      Brokering
      “Business opportunities”
      Casinos, gambling or gaming
      Check cashing services
      Cigarettes, e-cigarettes, or vape retailers
      Collection agencies
      Coupons or rewards-points programs
      Credit protection, counselling, or debt repair services
      Debt collection services
      Discount health or medical care programs
      Debt consolidation services
      Drug paraphernalia
      eBay stores
      eBooks (copyrighted material)
      Electronics
      Exporting services (non-US based)
      Extended warranty companies
      Fantasy sports websites
      Federal Firearms License (FFL) dealers
      Finance brokers, financial consulting, or loan modification services
      Furniture sellers
      Financial planning, strategy or advising
      “Get rich quick” books, programs, etc.
      High average ticket sales
      Horoscopes, astrology or psychic services, fortune tellers
      “Hype” products or services
      Hypnotists or self-hypnosis services
      International merchants (non-US based) operating in the United States
      International shipping, cargo, or import/export
      Investment firms, strategy, or books
      Life coaching
      Lingerie sales
      Lotteries or sweepstakes
      Magazine sales and subscriptions
      Mail or telephone order sales
      Membership organizations (contracts over 12 months)
      Merchants on the Terminated Merchant File (TMF) or MATCH List
      Merchants with poor credit
      Modeling or talent agencies
      Multi-currency sales
      Multi-level marketing (MLM) sales tactics
      Non-US citizens doing business in the United States
      Off-shore corporation establishment services
      Pawn shops
      Prepaid calling cards
      Prepaid debit cards
      Real estate
      Replica handbags, watches, wallets, sunglasses, etc.
      Self-defense, pepper spray, mace, etc.
      Sports forecasting or odds-making/betting
      Telecommunications
      Telemarketing services
      Telephone companies
      Time-shares or time-share advertising
      Tour operators
      Travel clubs, services, or agencies
      Vacation planners
      Vacation rentals (unless the property is owned by the merchant)
      Vitamin and supplement sales (i.e., diet pills, prescription pills, health supplements, pharmacy products
      VoIP services

  • We can help HARD TO PLACE businesses.
    • Hard To Place – No Problem

      Not all businesses are created equal especially when it comes to banks. It’s important to work with a merchant services company that understands your business type. We have aligned ourselves with banks that are comfortable with hard to place merchants. Tired of getting rejected because of your business type? That stops here.

      • Businesses vulnerable to frequent Chargebacks
      • Blacklisted Companies
      • Industries with Poor Reputations
      • Businesses vulnerable to Fraud
      • New Businesses
      • Companies that primarily accept card-not-present transactions
      • Businesses with Recurring Billing Cycles

  • Optimizing Industries across the Globe
    • Our underwriters and business consultants have broad experience with all business models considered “high risk” by traditional banks. Leverage our staff today, and let us service your credit card processing needs.
Are You a
High Risk Merchant
High Risk Merchant
High Risk Merchant
?

If, for whatever reason, your business is determined to be a high-risk one, the consequences can be severe. Many processors will simply refuse to approve you for a merchant account, while others will charge you significantly higher rates and fees than you would otherwise have to pay.

High-risk credit card processing can be tricky, but it’s not a death sentence for your business. Running any business these days more or less requires that you give your customers the option of paying with credit or debit cards.

H

igh-risk credit card processing can be complex, but with reliable high risk merchant account provider things will be easier for high risk merchants.


Nowadays running any business requires that every merchant must give their customers the option of paying with credit or debit cards. In case you are in eCommerce business, credit/debit cards are just about your solitary option for getting paid. Albeit small merchants can get by with a payment service provider (PSP), for example, PayPal or Square, when your business achieves a certain size, you will need to move up to a full-service merchant account. While it would be decent if credit card processors treated all organizations equally, the truth of the matter is that they don’t. Larger, high-volume organizations get lower processing rates and regularly get more liberal contract terms.


Businesses are also treated differently depending on the level of financial risk they present to their processor. All processors will cautiously judge your business to decide if you fall into the “high-risk” category.


If for reasons unknown, your business is categorized under high-risk one, the results can be serious. Most of the processors will basically decline to approve you for a merchant account, while others will charge you undoubtedly higher rates and fees than you would some way or another need to pay.


Much like applying for a loan, when a business owner applies for a merchant account, there is an underwriting process the account provider (or loan provider) will go through to estimate the risk of adding your account to their portfolio.


Some of the points taken into consideration when applying for a merchant account are:

  • Your personal credit history
  • Company financials
  • Number of years in business
  • Merchant account history such as if you ever had a merchant account before. If so, do you have a history of chargebacks and have you been blacklisted on the MATCH list or Terminated Merchant File (TMF).

Are you in good standing?

Type of business or merchant category code

It’s the last one that’s the kicker. The type of business you operate will have a significant impact on the rates you pay per credit card transaction.


If you’re deemed as a high-risk business, your account provider will likely require you to keep a reserve. There are three types of reserve accounts you can expect from MSPs, and they are:

Rolling Reserve. A rolling reserve is a risk management strategy the acquiring bank uses to protect themselves from potential fraud, chargebacks, or other incidents where the acquirer may lose money. Think of it as a buffer or an insurance policy on the high-risk nature of your business. Based on the terms of your merchant agreement, the payment provider will withhold a percentage of your daily revenue for a specified term, and then gradually release the funds.


Up-Front Reserve. If you’re a new business or have other less than ideal qualifying factors, some MSPs will require starting with an up-front reserve. Based on expected transaction volume, an up-front reserve is the amount of money that must be placed in escrow at the start of the merchant agreement — or allow the MSP to withhold 100 percent of credit card funds until the reserve balance is met.


Capped or Fixed Reserve. A fixed reserve is when the acquirer withholds a percentage of every transaction until the reserve reaches the cap agreed upon in the merchant agreement. Unlike a rolling reserve where the acquirer takes a portion of every sale indefinitely, in this model, once the cap is reached the acquirer will not take any additional funds. However, if the MSP needs to withdraw from the reserve for any reason, the withholding percentage will kick in again until the cap balance is replenished.


What Happens If You Are Labeled a High-Risk Merchant?

High-risk merchants don’t qualify for traditional processing agreements. They’re stuck working with acquirers and processors who offer high risk merchant services and are willing to accept liability for the increased risk associated with these businesses (known as a high-risk payments processor). As you might imagine, “high risk” service comes with a higher price tag.


First and foremost, if you want to accept credit cards as a form of payment, there is going to be a cost associated with doing so. The major card networks (Visa, Mastercard, Discover, and American Express) charge interchange fees to use their network and the Merchant Service Providers (MSPs) charge processing fees to connect the card issuing bank to the acquiring bank via payment processors like First Data or TSYS.


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.

How do we compare to other providers?

We offer the most competitive pricing, and the highest rate of approved merchant accounts, with a full suite of services and a no frills application process.

IpayTotal
  • Approvals within 24 to 48 hours
  • High Risk Rates as Low as 2.99% *
  • High Risk Account Specialists
  • No Application or Setup Fee
  • No Annual Fees and No Gimmicks
  • Chargeback Protection Services.
Other
  • Approvals within 24 to 48 hours
  • High Risk Rates as Low as 2.99% *
  • High Risk Account Specialists
  • No Application or Setup Fee
  • No Annual Fees and No Gimmicks
  • Chargeback Protection Services.

*2.99% pricing applies to qualified merchants. Mid-qualified and non-qualified rates can be higher. Contact us to get a free quote.

Gateway

Seamless integrations from our payment gateway directly to your website make accepting debit and credit cards online easier than ever.and One the other hand our integration is very simple and secure.

Ecommerce

As experts in eCommerce merchant services, we’ll get your business ready to accept eCommerce credit card payments with customized eCommerce payments solutions, with in 24/48 Hours

Fraud

As an eCommerce retailer, it’s important to educate yourself about what credit card fraud looks like, what it involves, and how to arm yourself with eCommerce fraud protection and eCommerce fraud prevention measures.

High Risk Merchant Account

iPayToTal understands the one of a kind needs of the different high risk related businesses and has built up 40+ acquiring banking connections to end up a specialist in providing high-risk merchant accounts set up and accepting on the online payments.

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