Some businesses just naturally have more risk than others. If your business happens to be one of these, you may have been turned down by one credit card processor after another. You may have heard the words “high risk merchant” tossed around and you may have wondered if there are any merchant account providers willing to handle the high risk credit card processing needs you have. Fortunately, there are some merchant account providers that focus specifically on your needs.
You Can Find a Provider
One of the most important things to remember as a high risk merchant is that there are many providers who aren’t cut out to offer you the processing services you need. At the same time, there are some providers that specialize in just the services you’re looking for and there are other providers that understand your peculiar position and have relaxed guidelines that are suited to your situation. With this in mind, you can proceed with confidence that you’ll be able to find at least one provider that will offer you credit card processing services.
Be Prepared for Different Rates and Terms
The second thing you need to know is that you shouldn’t expect the same rates and terms that other businesses will get. Merchants with high risk situations have to settle for higher rates and more complicated terms than other businesses. You’ll probably find that there isn’t much room for you to negotiate. With this understanding, it’s very important that you review all of the details in your contract, especially when it comes to the fine print. Look out for termination fees, negative details associated with a rolling reserve, or a large amount of chargebacks. There’s a lot of potential for trouble in those contracts if you don’t carefully read through them.
What Makes Your Business High-Risk?
Next, take a few moments to consider those things that makes your business a high risk. For example, some industries have a high potential for fraud or high numbers of chargebacks. Other reasons you might be considered a high risk business could include a merchant application account being denied by a merchant processor, poor credit scores, or offshore business operations. As you look for a provider willing to handle your high risk credit card processing, it can be helpful to remember that those businesses aren’t going to want to lose money either. In fact, you should probably be a little bit leery when it comes to any provider making big promises or pushing for quick decisions.
Look for the Silver Lining
Ultimately, you should try not to take rejections from banks personally. They are interested in protecting their bottom line and that rejection is directed toward the industry you represent, not you. When you do find a provider willing to handle your high risk credit card processing, you may have access to resources that could help you to avoid some of the riskiest situations. The provider may offer services related to your website or with other industry-related problems. This will only be the case if you choose a provider with experience with your industry and at least some type of guidelines to show that your two businesses are compatible.
