So you may have determined that your industry or product requires a merchant account high-risk businesses need to support your payment processing services.
Banks, financial institutions and payment processors are naturally risk-averse. Though this makes business sense for them, it often leaves some companies considered high risk unable to get coverage, credit or a merchant account. Associations with illegal products and operations can taint entire industries, while simply not being able to provide a credit history can hurt others. FLEX Payment Solutions is experienced in dealing with industries classified as high risk and provides quality, high risk merchant account and high-risk payment processing for a variety of businesses.
If you believe your industry is considered high risk, contact us first and learn about the tools and methods we can present to make securing a merchant account a breeze for your business.
A merchant account considered high risk accounts is one that is at an increased risk of chargebacks, where a customer disputes a payment and the money is returned to their card. This can be for many reasons, including technical problems with the order, products not turning up, a fraudulent purchase, or simply a customer return.
Certain industries or products are more susceptible to having a merchant account with an increased number of chargebacks. This can be down to regulations on the shipping of the product to certain regions, either internationally or over state lines. It can also be due to the product’s popularity with fraudsters or possible links to crime and illegal activity.
Normally a chargeback ratio of over 1% of transactions is enough for a merchant account to be flagged as high risk. These accounts can then be frozen or suspended by major processors. To avoid this happening, you require a special high risk merchant account.
If your business falls into the high chargeback bracket, a high-risk merchant account is designed to protect you from being unnecessarily flagged and having your risk merchant accounts frozen.
There can, of course, be downsides to high risk accounts. The merchant account fees associated with this type of merchant account tend to be higher, both for payment processing and for the chargebacks themselves. Some high risk providers will also charge set-up fees, monthly or annual subscriptions and penalties for early termination.
However, an increased level of competition in the merchant account area has allowed high risk customers to shop around and find the best deal. Today, there are high risk merchant accounts available that provide a fair price for the service.
FLEX Payment has extensive experience in providing accounts for high risk businesses and can help you find the merchant account to fit your needs. Whether you require payment processing for a vape shop, money lender, firearms provider or ticketing agency, we will ensure that you receive the very best rates, thanks to our partnerships with banks and providers.
FLEX Payment Solutions is the first and only call you should make if you are a high risk business in need of a merchant account. Schedule a free consultation and learn how we can provide a payment processing account high-risk merchant businesses can trust to support your payment processing needs.