Are you looking for a High Risk Merchant Service for your High Risk Business?
A proper High Risk Merchant Service takes years of expertise in the merchant services industry.
While banks mail out credit card offers to consumers on a daily basis, that isn’t the same thing as a High Risk Merchant Account.
Also, when you are looking for a merchant account that is high risk, it’s not the same as a low risk merchant account where the agent can give you what’s called the “book rate.”
Any agent that tells you what you will be paying in regards to your High Risk Merchant Service before even going through the process with you isn’t being honest with you, or the agent doesn’t know what they are doing.
If you’re new to business and aren’t quite sure what a high risk merchant account even is, it’s pretty simple. Merchant accounts are the types of accounts necessary for accepting credit card payments from your customers.
While PayPal can be easy to set up, it isn’t a real merchant account, it’s actually called a wallet.
Also, Pay Pal doesn’t take most high risk businesses.
Even if you are able to open the Pay Pal account, once they realize your business is high risk, they will shut your account and most probably seize your money.
The same thing happens with many high risk businesses that start with a Stripe account.
If you really want to look like a professional business, eventually you’ll want to get a high risk merchant service from a processor that has no issues with your line of business.
Also keep in mind that while some well-established businesses in certain industries can get a merchant account from most processors, they aren’t you. You are operating in a high risk industry, which means you need a specialist within the High Risk Merchant Service area.
When you find the right merchant services agent for you, getting a merchant account will be as fast and painless as possible.
High risk industries can be anything from bail bondsman, collection agencies, a business selling digital products such as ebooks, music, videos, video games, etc., to selling supplements (nutra), the adult industry or selling CBD oil.
Understand that finding out the exact rates you will be paying for your merchant account, you’ll need to go through the process, which means you providing a lot of information about your company and you personally.
This is not because underwriters are trying to be difficult; it’s because they have risk analysis standards they use to calculate rates, so in order to give you rates, they need all the relevant information to evaluate your creditworthiness and risk level.
With every company and business owner, the specifics of what they look for are different, but some of the same things underwriters will definitely take into consideration are:
- Your credit history (credit score)
- How much capital you have in your corporate bank account.
Essentially a merchant account is no different than a loan.
The underwriter is agreeing to stand behind your business in the event of a chargeback or multiple chargebacks. They are also trusting you won’t commit fraud by running fake transactions through your merchant account.
This why underwriters want the necessary information to figure out if your business is likely to get a lot of chargebacks and if you have the good credit and reputation to deal with them.
In order for them to figure out how likely it is that chargebacks will occur, underwriters will want to know specifics about how you run your business and see what’s written on your site.
- Your terms and conditions page
- Your refund policy
- What are customers saying about your business online
- Do you have a clean record
- Are you on the TMF list
Once they have evaluated that, then they can give you a high risk merchant account quote.
It’s important that you have a professional looking website that functions properly, has proper contact information, makes it easy to see what a person is buying and what they need to click on to buy.
If your site looks like it was thrown together by your 10-year-old, underwriters might think twice about agreeing to stand behind your business.
A badly designed site makes it appear that a business owner doesn’t actually know how to run a business and might be at a higher risk for fraud, incompetence, and chargebacks. It can still be possible to get a high risk merchant account in those circumstances, but it is likely that the rates will be higher.
Again, that’s not to say that starting a merchant account can’t be done if you have one or more flags for being a high risk client – it just means that you need to find the right agent to help you, and you need to provide the right information to get the most accurate and most favorable rate quote.
Being an efficient accommodating business owner who makes changes to the website and gets us the proper paperwork quickly goes a long way in Rapid Financial Solutions helping you get your high risk merchant account so your business can get to the next level.