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Convenient High-risk Processing from Dedicated Merchant Service Providers

Monday, December 6th, 2021

If you run a business that processes payments online, then you know your business depends on your merchant account provider. A merchant account provider enables you to process credit card payments from your customers whenever they purchase from you.

But have you heard about the possibility of being categorized as a high-risk business? Are you worried that it’s going to destroy your business? Are you looking for ways to get payment processing despite this branding? 

Why Would a Processors Consider Your Businesses “High-risk”

Numerous business models initiate payment transactions that banks consider high-risk such as subscription-based businesses, recurring billing, eCommerce, travel, and entertainment.

The most common reasons for a high-risk naming include:

1. Chargebacks

A chargeback occurs when a customer disputes a charge with a credit card company. Chargebacks are the number one cause of high-risk status for businesses accepting credit cards. They can also lead to reduced processing capabilities and increased transaction fees.

2. The reputation of the industry 

Payment processors consider the marketplace that a business operates within to determine if it is high risk. For example, a clothing business will be considered high risk if it operates within the adult entertainment industry. Processors may also consider niche markets such as medical marijuana dispensaries or escort services as high-risk.

3. Transaction Volume  

High-Risk merchants typically have higher than average card processing volumes. This increases the possibility of chargebacks and complaints from customers–and can mean extra costs to the processor and merchant.

4. Billing Model

Businesses that use recurring billing models are considered high-risk because the way the billing system works requires a financial commitment on the part of the company. These types of businesses are particularly vulnerable to chargebacks, which occur if a customer disputes a transaction.

Enjoy High-Risk Processing from Dedicated Service Providers

If you’ve been turned down for merchant services in the past, you may think that getting high-risk merchant services is your only option. While that isn’t entirely false, there are alternatives to high-risk processing that can help you get the best high-risk merchant account.

Natural high-risk processors understand the difficulties involved in working with a low or bad credit business and will tailor the services to keep all your payments and stay in good standing. They are also supportive and will come to your rescue if you counter any payment processing challenges.