Credit Card Processing solutions for High Risk Merchant Accounts

Businesses which have a good trading history easily obtain a merchant account but the ones with high amount of chargebacks find it difficult to find right merchant account services for their business. High-risk business owners have to pay a little more than others to obtain a merchant account.

High Risk Merchant Accounts

Once a particular business is given a merchant account by an acquiring bank or merchant services provider, it enters into a credit agreement according to which the provider allows a line of credit. But when a customer request for a refund or (chargeback) and the company don’t have sufficient funds to pay it back to the customer, the provider is obliged to foot the bill. This applies even when the customer buys products or services using a stolen or cloned credit card. Thus the provider has to assess the risk which is dependent on the percentage of chargebacks that can take place.

Many high street banks are not willing to provide high risk businesses with merchant accounts due to their high-risk nature. And that’s why; they need specialist high-risk merchant account providers for their payment gateways solutions.

Although it’s not difficult to find a merchant account provider but they charge higher fees along with few other restrictions for lending their services.

Credit card processing solutions for High Risk Business

If you have a reasonable trading history you will not find it difficult to obtain merchant accounts from mainstream providers. The transaction fees will vary depending upon the risk sectors with almost 10% or more for very high risk sectors. Some providers specialize in certain high risk sectors while others provide it for all sectors.

If you are planning to apply for a merchant account, you will have to undergo the same process followed while applying for a standard account. The merchant account provider will check your trading history and a detailed business plan. The documentation work is taken care of by the provider; you just have to focus on a good credit history.