Why do you need a high risk merchant account for your business?
They say that high risk also means high reward, but that isn’t necessarily true for your credit card processing. If you have found that you need a high risk merchant account, then you might be concerned about what that means for your business. Does it mean that your business is considered risky? Does it mean that you are more likely to fail? We break down some of the reasons why you might need a high risk merchant account, and why that doesn’t need to be a death sentence for your business.
It’s not you, it’s the business you’re in
If you’re a newer merchant that is looking at how to process credit card payments, and you find out that you need a high risk merchant account, you may be confused about why that is. For example, your business might have a sterling reputation, but maybe it doesn’t have a whole lot of credit history.
In many cases, the reason that your business is classified has a high risk enterprise is because of the industry that you are in, and the policies of the merchant services company that you are talking to about getting a merchant account.
Many industries can be considered high risk, even when the business is not inherently high-risk, simply because the overall industry has a higher than average rate of charge backs or other adverse situations that affect the credit card processor. While unfortunate, it doesn’t need to be a death sentence for your business.
It pays to find the best fees
It is true that when your account is considered high risk, you will most likely pay more to process credit card transactions, but that doesn’t mean that you need to necessarily take the first fee that you see. With high risk merchant accounts, it’s common to find a more diverse range of credit card processing fees than you might on a traditional merchant account.
There is much more to opening a merchant account than just the credit card processing fee, since you tend to get dramatically different levels of service from different companies, but if you are initially shocked with a high credit card processing cost, then you might be able to limit that cost a bit by shopping around. To get started, you can press the button at the top of this page to get a free rate quote from our firm today.
Your account may not always be high risk
Even though you might have a high risk merchant account today, this doesn’t mean that you are going to have to keep that high-risk account permanently. If your business requires a high risk merchant account because of excessive charge backs or other issues, then you may need to wait a bit and show that these problems were only temporary issues for your business.
There is always the chance that your business can switch to a more traditional merchant account service in the future, provided that you are working with a flexible and innovative merchant account provider. If you’re looking to process credit cards today, then we’re ready to help you. Get a free quote on a merchant account today by clicking on the link at the top of this page.