What Are high risk merchant highriskpay.com?
high risk merchant highriskpay.com processors are specialized payment service providers that focus on handling transactions for businesses operating in high-risk sectors. These sectors typically involve a higher likelihood of fraud and chargebacks, such as online gaming, adult entertainment, or debt relief services.
These businesses often struggle to secure merchant accounts through traditional banks or payment processors due to the increased risk associated with their business models. High-risk payment processors offer a range of services, including fraud protection, chargeback management, and multi-currency support, to help merchants mitigate the risks associated with their operations.
High-risk payment processors tend to have a higher tolerance for risk and more flexible underwriting requirements, making it easier for high-risk businesses to obtain merchant accounts and start processing transactions. However, they often come with higher fees and more stringent contract terms compared to conventional payment processors.
It’s crucial for merchants in high-risk industries to carefully review the terms and conditions of their contracts with high-risk payment processors and conduct thorough due diligence on the processor’s reputation and history to ensure their payment processing remains smooth and secure.
What Exactly Is a High-Risk Merchant Account?
A high-risk merchant account is a type of account specifically designed for businesses operating in industries with a higher risk of fraud, chargebacks, or other issues that may result in a higher number of rejected transactions or disputes. High-risk industries may include online gambling, adult entertainment, travel, and certain types of online businesses.
Traditional banks and payment processors often classify these industries as high-risk due to the increased likelihood of fraudulent activities or disputes. As a result, high-risk merchants may struggle to secure conventional merchant accounts and may require the services of high-risk merchant account providers instead.
High-risk merchant accounts typically offer more flexible underwriting guidelines and are more accommodating to businesses with a higher risk profile. However, they also come with higher fees and stricter contract terms due to the greater risks assumed by the service provider.
It’s essential for high-risk merchants to conduct thorough research on prospective high-risk merchant account providers, carefully examine their fees and contract terms, and consider the provider’s reputation to ensure efficient payment processing and risk management.
Types of Businesses Commonly Considered High-Risk
It’s important to be aware of whether your business falls into the high-risk category, as this knowledge can help you plan and manage your operations more effectively. Common high-risk businesses include:
- Adult industry
- Airline travel and cruise companies
- Furniture and electronics stores
- Online gambling
- Online dating services
- E-commerce businesses
- Multi-level marketing (MLM)
- Electronic cigarettes, CBD, and vape shops
- Subscription services and businesses with regular payment plans
- Debt collection services
How to Choose a High-Risk Account Service Provider
When selecting a high-risk payment processor, it’s essential to carefully review the contract terms and conditions, as each provider and payment processing system may have unique terms. Here are some factors to consider when choosing a high-risk account service provider:
- The types of businesses the provider serves: Not all providers cater to every high-risk industry. Look for providers that specialize in serving your specific industry or risk profile.
- Cost structure: Understand the pricing and fee structure of the provider. Some providers offer transparent pricing, while others may require contacting a sales representative for details.
- Flexibility: Evaluate the provider’s flexibility in accommodating your business’s specific needs. Look for features like reporting dashboards, chargeback tracking, and contactless payment support.
- Customer support: Reliable and accessible customer support is crucial, especially when issues arise. Providers with multiple communication channels are preferable.
- Credit history: Be aware that your personal and business credit history can influence your chances of approval for a high-risk merchant account.
- Reviews and reputation: Consider reviews and feedback from real customers and third-party reviewers to assess the provider’s reputation and performance.
In Summary: The 6 Best High-Risk Merchant Account Providers
-
PaymentCloud:
- No cost to apply or set up an account
- Supported Industries: Adult services, CBD, MLM, nutraceuticals
-
National Processing:
- No cost to apply or create an account
- Industries supported: CBD, firearms, vape shops, financial services, and transportation
-
Durango Merchant Services:
- Quick account approval (typically within 4-6 business days)
- Industry Supported: eCommerce, bail bonds, debt services, offshore businesses
-
Host Merchant Services:
- Account setup and application fees
- Supported Industries: Firearms, vape shops, real estate, gambling
-
Soar Payments:
- Instant online quotes for faster account approval (3-5 business days)
- Supported Industries: Credit repair, legal services, pawnshops, CBD
-
Easy Pay Direct:
- One-time account setup fee of $99
- Supported Industries: CBD, telemarketing, massage parlors, online gaming
While these providers are recommended for high-risk businesses, your choice should be based on your specific needs, business credit history, and industry category. Conduct thorough research and negotiations with the provider’s sales team to make an informed decision that suits your business requirements.
In Conclusion
High-risk payment processors play a crucial role in enabling businesses in risk-prone industries to process transactions effectively. By understanding the nature of high-risk businesses, the factors that make a business high-risk, and the considerations when choosing a payment processor, merchants can navigate the complexities of high-risk payment processing and manage their businesses more efficiently.