Payment Solution For Your High-Risk Business

Monday, January 17th, 2022

Businesses prone to fraud and chargebacks are classified as high risk. High-risk businesses need to apply for high-risk payment solutions. These can be more challenging to obtain as compared to regular ones, however, they aren’t impossible to get. Let’s discuss the topic together and know how you can get easy access to the best high-risk merchant account.

High-Risk Payment Processing 

What factors do processors take into account when determining whether your business is high-risk or not? 

• Credit history. Bad credit or no credit history makes your business high risk. 
• Excessive chargebacks.
• The average transaction makes up $500 or more.
• Businesses associated with millions of payment transactions are considered high risk. Those processing more than 6 million payment transactions are in the highest risk category. Businesses processing fewer than 20,000 transactions are under the lowest risk classification.  
• The billing model is another factor processors take into consideration. Recurring billing or subscriptions are associated with the highest risk nature of businesses. 
• Accepting multiple currencies as payment.
• Conducting business internationally.

IBISWorld has recently presented a list of the Riskiest Industries in the U.S., taking into account the expert analysis and its database of 1,300+ U.S. industries. Here it is:

• VoIP
• Telecommunication Networking Equipment Manufacturing 
• Bowling Centers 
• Online Photo Printing
• Eye Surgery Clinics
• Bare Printed Circuit Board Manufacturing
• Furniture Repair & Reupholstery 
• Tunnel Construction
• Telephone Wholesaling
• Loan Brokers

Payment Solutions for High-Risk Merchant Processing 

When applying for a payment solution, be aware of the following. Financial institutions will charge you higher fees if your business poses a higher risk of liability to them. Higher fees aren’t the only factor to dwell on. High-risk merchants may also be subject to a rolling reserve. The latter guarantees protection to the bank if your business deals with excessive chargebacks and refund incidences.

Thus, it’s critical for high-risk merchants to well study the industry and choose the best possible payment solutions. Thankfully, there are payments comparison experts like BestPaymentProviders.com dedicated to finding the most reasonable costs, fair contract terms, transparent sales practices for high-risk merchants. Thanks to the right payment processing solutions, including the best high-risk merchant account, you can grow your eCommerce business and stand out from the crowd. Best Payment Providers U.S. has a perfect understanding of the high-risk industry and pays exceptional attention to terms, integration, and complaints. 

Payment Solutions for High-Risk Businesses

If your business deals with a greater risk of fraud and chargebacks because of the business type and processing volume, you’re going to be tabbed as high risk. The latter means you need to look for reliable high-risk payment processing solutions to process transactions online.