If your business operates in a high-risk industry, you may need to apply for a high-risk merchant account if you plan on using credit transactions. These industries tend to have a higher risk of chargebacks and fraud than traditional industries. Examples of industries that will need a high-risk merchant account include bankruptcy attorney, online gaming, pawnshops, life coaching, and drug paraphernalia. If you fall into a high-risk category, you may find it extremely difficult to find the perfect merchant account for your business. We’ve outlined a few tips below that can help you secure a merchant account for your business.
Research Top High-Risk Merchant Accounts
There are countless merchant account providers to choose from. How do you know which one is right for you? We encourage all business owners to thoroughly research all the top high-risk merchant account providers. Your goal should be to find the provider that meets your needs, budget, and provides great benefits and services. Many providers utilize predatory, inflated fees and these should be avoided. There are countless online reviews of all the top high-risk merchant account providers. Their website should be professional and easy to understand. A bad website may indicate a poor company and a low budget. Always read the terms and conditions of each merchant account provider you are interested in. This will help you avoid mistakes in the future.
Don’t Lie to the High-Risk Merchant Account Provider
Once you’ve found a few merchant account providers that meet your needs and budget, it’s time to contact them. During your application be honest and let the provider know what industry you are in. Lying to the service provider is the fastest way to be denied service. Lying could also result in an inaccurate quote. You should provide all the information that the merchant account provider needs as well. You may need to show financial statements, credit history, and merchant account history. Being prepared is the best way to ensure you get the merchant account that meets your needs and budget.
Find a Merchant Account Provider that Meets your Needs and Budget
Your main concern during the search is to find a high-risk merchant account provider that meets your needs and budget. You want to find a stable and reliable payment processing provider that offers great rates and additional services. Is your business online, you’ll need an online payment solution. Do you need credit card terminals, POS systems, or mobile payment solutions? Countless options can make one merchant account superior to another. Make sure you find the perfect high-risk merchant account for your needs and budget.
High-Risk Merchant Account Contracts
Many high-risk merchant account providers will try to lock your business in with a long-term contract. You should try to avoid long-term contracts since the needs of your business might change in the future. Long-term contracts may auto renewal and you could be stuck with the same company even longer. Always specify the term of the contract when talking with your merchant provider.