Things You Should Know as a High-Risk Merchant
Businesses that are planning to accept credit and debit card payments often face some challenges when applying for a merchant account. There are many of them that get repeatedly denied due to their high-risk business operations. Without the ability to accept credit payments, you could be losing out on a lot of business. If you're a high-risk merchant, there are a few things that you need to know before looking for a payment processor that offers merchant account services for high-risk businesses.
Knowing how to prevent chargebacks is very important. How often your business incurs chargebacks plays a huge role in determining your risk factor. When payment processors and merchant account providers are evaluating your high-risk merchant account application, they will look at your chargeback rate and sales volumes. If the rate is too high with low sales volumes, then providers may not be willing to offer merchant account services. To avoid this, ensure that your business has minimal chargebacks. Learn more about high risk merchant accounts today.
Your business industry may also affect your merchant risk status. Even without any chargebacks in your merchant account, you may still be categorized as a high-risk merchant. If you are in an industry that faces huge risks of fraud or data theft, merchant account providers may not be willing to accept your application for a merchant account. Businesses in industries like gambling, adult services and products, astrology, dating, recurring and billing services, travel and others are categorized as high-risk businesses than others. However, this doesn't mean that you cannot get a merchant account. Get a high risk merchant account now!
Understanding your merchant account agreement and payment processing contract is important. One of the most important things before signing a contract with merchant account providers is understanding their terms of service and pricing structure. The agreements will outline the sales volumes that you need to clear every month, the length of the contract, the fees you must pay and as well as service termination terms and fees. Failing to meet or fulfill these requirements can make it difficult for you to get merchant accounts in the future or payment processing services.
As a merchant, you should try and avoid ending up on The Member Alert to Control High-Risk (MATCH) list. Service providers and credit card companies maintain this database. It's used to track merchants that are involved in fraudulent activities or those that commit serious offenses like money laundering, collusion, leaking of client information, fraudulent transactions, bankruptcy and others. If you are on this list, many high-risk merchant account providers will not be willing to work with you.
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