High Risk Merchant Account: Finding an Affordable One
Anyone who has been in business for any length of time understands that all of their expenses will be higher than what the average person pays.
This is true when comparing commercial insurance rates, tax rates and even utility bills.
These higher costs all add up and have an affect on the profit each business is able to make. This is why it may seem almost impossible to operate efficiently when someone is considered a high-risk business and is looking for a high risk merchant account.
Even finding someone to process credit card purchases can be challenging for businesses in this category.
That is why a high risk merchant account may be the only option companies with this rating may have available to them.
What Makes a Business High Risk?
A business may be labeled as high-risk for a number of reasons. Certain industries like online retailers, collection agencies or gambling establishments are often included in this category.
Companies that sell products that are frequently counterfeited, like handbags or watches, are a potential risk. Any company that has the potential for frequent charge backs or is at risk of data theft is often refused a merchant account.
Some businesses face this issue because of their location, such as being offshore or located on a border with a state or country where their product or services are illegal.
Personal or business credit issues are also a common factor for companies that have found it difficult to locate a processor that will work with them.
Is It Possible To Get An Affordable High Risk Merchant Account?
Being high-risk does not mean that the company will never be able to accept credit or debit cards.
There are providers who specialize in offering their services only to these types of businesses.
However, it is not uncommon for certain companies to take advantage of their clients by charging exorbitant rates or unfair terms.
This is why it is very important to do the research before selecting a provider.
A high risk merchant account will always be higher than one that is not deemed high-risk, but that does not mean it has to be unfair.
Many options are available that will not strip away all of the profit from the merchant.
These providers offer a number of solutions and services for all of their clients to help make doing business a little easier.
Will High Risk Merchant Accounts Process Cards?
This includes the equipment to process the cards, online services like a shopping cart and virtual terminal and even web design services.
Credit card and debit card acceptance is a necessity in the business world today. There are over 23 billion credit card transactions every year in the United States alone.
Without the ability to accept cards it can be difficult for any business to survive.
Take the time to check the details of multiple businesses before agreeing to work with any provider.
This will make it easy to see what services are available and what the average cost should be for that level of care.
Check reviews of each company from other merchants to be certain each provider has a reputation that lives up to their promises.