The Definitive Guide for High-Risk Merchant Account
What is a merchant account?
Why high risk merchant account is important?
Which industries need a high-risk merchant account?
What to expect from a high-risk merchant account?
How to apply for a high risk merchant account?
What Is a High Risk Merchant Account?
- High-risk industries are industries that are prone to fraudulent sales and chargebacks.
- These industries need merchant account where you can accept payments.
- It can be used by these businesses to process credit card transactions.
Why High Risk Merchant Account is Important?
A high-risk merchant account is very important to receive payments.
Additionally, companies that have over $20,000 in sales per month, average credit card sales of $500 or more, or a business that has a bad credit history may also need a merchant account.
Also, merchant account may have higher fees and different terms than a traditional merchant account as well.
Thereafter, there is no need to worry if you fall into these categories, as there are still plenty of excellent merchant providers available.
Which Industries Need High Risk Account?
Companies that experience a high number of chargebacks and fraudulent sales are at high risk.
These include eCommerce sites, events, travel, internet services, and more.
Below is a list of industries that are always at high risk.
The list is not completed and many other industries are prone to chargebacks and will require a merchant account.
If you’re not sure about your industry, you can contact 5 Star Processing to learn more about high-risk merchant accounts.
- Collection agencies, bankruptcy lawyers, financial consulting
- Gambling, online gaming, fantasy sports websites
- Vape shops, drug paraphernalia, adult shops
- Health and wellness, get rich books, life coaching
- ISP services, VoIP services, SEO Services
What to Expect From a Merchant Account?
- While most merchant account providers will be professional and legitimate, many could employ predatory practices.
- We encourage anyone who is in the market for a merchant account to spend time researching.
- Finding the right provider for your business will make your life easier.
- Furthermore, You may experience higher fees than a normal merchant account. Hence, you need to sign a longer contract with your provider.
- Fees can vary drastically. The difference between .5% and 5% in fees can be shocking.
- Try to find a merchant account that meets your needs and budget.
- You may need to provide revenue-limiting reserves. Most merchants will offer up-front, rolling, and fixed reserves.
- Therefore, These will ensure the merchant will pay even if a transaction goes wrong.
Up-front reserves allow the merchant to withhold all funds until a reserve reaches.
Rolling Reserves hold a percentage of daily revenue for a short time.
Fixed Reserves are rolling reserves that have a cap.
How to Apply For the Best High-Risk Merchant Account?
- Before applying for a merchant account, be sure to spend time researching the wide range of providers.
- Each provider is unique and will provide different rates, terms, customer services, and additional services.
- When you’re ready to apply, they will ask for a variety of paperwork including incorporation certificates, shareholder certificates, credit processing history, and your passport.
- Get ready for the application and the process will go smoothly.
One-Stop Solution For Merchant Account
5 Star Processing is a team of experts who provide high-risk merchant account in less time or easily.
5 Star Processing experts are one step away from you, just dial the toll-free number +1 888-253-9692 or reach us by filling the contact form.