Read how your business can benefit. Having your merchant account shut down can be extremely bad for business – it can cost you all or the majority of your sales, and can often come with no warning. If your business is having difficulties obtaining and keeping a merchant account from local banks, the answer may be to get a high risk merchant account offshore. Read on to learn more about why it may be a good solution and how you can start.
Why the need for a high risk account?
Banks and other financial institutions use risk calculations as a major part of their day-to-day operations.
When they come across a customer who can be categorized as having a high risk business, it’s common for them to reduce their dealings with that customer.
Similarly, if they receive a new application from a business that operates in a high risk industry, the outcome is almost always a rejection.
This becomes a problem when you realize that the list of high risk industries that the banks go by is pretty extensive – and it gets longer every year.
It used to be that the primary high risk businesses were casinos and other gambling businesses, adult entertainment companies, and various pharmacies.
Today, however, it encompasses close to 100 different industries and business types – so the probability of running a “high risk business” is very high. And if it’s not on that list today, it just may be added tomorrow.
Of course, these businesses still exist and many still turn a profit… But it’s usually not thanks to any local bank.
Instead, they go to a high risk merchant account provider who can set them up with a reliable account that won’t get shut down because of a label. And a common option is to get a high risk merchant account offshore.
Advantages of a high risk merchant account offshore
With this type of account, your business can continue making sales, processing credit cards, and otherwise collecting payments even if:
- Your turnover increases dramatically
- You experience a high refund rate
- Your chargebacks go up
Traditional banks will often associate these events with fraudulent activity, which is why they won’t deal with high risk industries.
Especially chargebacks are seen as a bad sign – but the truth is that some industries just experience a higher rate of chargebacks.
Often it’s not in any way the fault of the business, but rather a predatory behavior by the customer who tries to get their money back in spite of having received the product or service that they willingly purchased.
Get a high risk merchant account offshore with 5 Star Processing
Here at 5 Star Processing, we’ve been specializing in high risk industries and businesses for more than two years.
We can open a high risk merchant account offshore or domestically – the choice is yours.
Our concern is for your business and its ability to process payments so that you can rest assured that your cash flow won’t be interrupted.
Contact us today for help with high risk merchant accounts
We expect staff is ready to guide you in all matters at high risk. Call us now at (888) 253 9692, or email us at [email protected] and we’ll get back to you shortly.