A merchant account simply means an account needed for a business to accept monetary transactions from the clients or other businesses. Every business has its own merchant account. Merchant accounts are mainly divided into two groups, one low-risk merchant account and another is a high-risk merchant account.
You need to follow a regulated and standardized procedure to apply for a merchant account. Though some businesses or industries that are considered as ‘high risk’ businesses can face some difficulties to apply and get a merchant account. Also, banks put extra charges in these cases.
So, if you are handling a high-risk business or a high-risk industry you need to know what the best high-risk merchant account providers are and why you need to know about them. So it will make your business transaction simple, smooth and safe.
Here are the top 6 reasons why you need a high-risk merchant account provider.
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What is a High-Risk Merchant Account?
A merchant account that poses a high risk of fraudulent activity and extra charges is called a high-risk merchant account. Though every merchant account provider or processor has its own definition of high-risk business.
So, it is possible for a business to be considered as a high risk for a provider. But not considered as a high-risk business for another merchant account provider.
6 reasons why you need to high-risk merchant account provider.
1. Worldwide billing
If your business is a global business and you have to accept monetary transactions all over the world. Then a high-risk merchant account provider is the best way to do all your business transactions in one place. As high-risk merchant accounts do not limit the business transactions in a specific region you can easily access global billing and transmission with it.
2. Multiple payment options-
Another unique side of using high-risk merchant account providers is that they offer flexible payment options. As it includes many regional and global transaction methods. Your customers or clients always have options and can choose their preferred payment methods. This will also open more acceptance for your business.
3. Recurring transactions-
Some businesses and industries need to avail of Recurring transactions or payments for different reasons. And for this high-risk merchant accounts are the only option. The low-risk merchant account may provide many positive sides of safe transactions but they do have a lot of limitations. And Not allowing recurring payment is one of them. So those businesses who need an allowance for the recurring transactions should go for a merchant account provider that offers high-risk merchant accounts.
4. Wide range of products and services –
All the high-risk merchant accounts are approved for offering a wide range of products and facilities or services. As they go through an extensive screening process to be accepted and approved. This is one of the top reasons to choose a high-risk merchant account provider. So you can access this kind of facility and the process of getting a high-risk merchant account will be more easily and reliably.
5. High-risk Industries –
The merchant needs to consult with their payment processor or provider before they accept payments from the high-risk merchant accounts. As it includes risks like monitory loss and other fraudulent activities. Businesses like financial services, traveling, legal, auction, retail, Cannabis, online gambling, dating, etc. fell under the high-risk Industries.
6. High-risk Countries or Territories –
The high-risk businesses that are spread worldwide and deal with different currencies also attract more fraudulent activities and cyber-attacks from small and regional businesses.
Naturally, they need a strong and reliable payment gateway that also provides a vast range of facilities. And the high-risk merchant account provider is the perfect solution for their problem. A high-risk merchant account processor offers multi-layered security and a reliable method for their business transactions.
There are also other matters that need attention like getting a high-risk merchant account provider will also help you in chargeback issues. Support in technical issues, industry coverage, and also very helpful in compliance related to the transaction. As high-risk businesses face many issues that are quite tough to handle alone for the owners. The high-risk merchant account processor or provider can offer them the desired key features and help to run all the business transactions smoothly.
How to find the right high-risk merchant account provider?
The merchants looking for a good high-risk merchant account processor or provider need to know what are the features of a reliable merchant account provider. You need to keep in mind the following tips before contacting a merchant account provider.
- Security and Industry coverage – As the risk factor is high in high-risk businesses you need an account provider who can provide you with strong security. Also covering all industries in the system is a positive side of a good provider that will help you get to your multiple clients in one way.
- PIC compliance and technical support- Another key to getting a good possessor is to check whether they are providing proper PIC compliance and totally technical support. This is a standard facility for any high-risk merchant account processors. If the provider does match this need you should avoid signing a contract with them.
- Contract duration – Last but not least always pay close attention to the details of contract duration. Do not opt for a long-term contract as it can lock you in. Because as time passes your business needs also change. So, if you sign a contract that is too long it can lead to future difficulties and conflicts. Signing a contract that is not too long or too short is recommended.
Conclusion-
Merchants who are in high-risk businesses or industries must need a high-risk merchant account processor for safe and reliable business transactions. Choosing a good account provider will help them to run all the business smoothly and do not need to worry about fraudulent activities or attacks.
Read also: What is a high risk merchant account? Do you really need it?
