Do you run or manage a business that fits into a high-risk industry for merchant accounts? You might be worried about account fees and hidden charges. If you are in a high-risk industry, traditional merchant account providers will deny your application. This is where high-risk merchant account providers will help. A dedicated high-risk merchant account can help your business accept credit card payments and thrive. While there are fees associated with a high-risk merchant account, they are often comparable to fees associated with a traditional merchant account. In this article, we’ll talk about fees associated with these accounts and hopefully ease some of your worries.
Processing Fees for A High-Risk Merchant Account
A high-risk merchant account will have a variety of fees that will need to be paid with each transaction. You will normally be required to pay a setup fee for the service. If you are selling items in a brick and mortar store, there will be fees for the payment processing equipment as well. eCommerce stores could also have fees for shopping cart and payment gateway setup. You may also be required to pay penalty fees due to excessive customer chargebacks.
Each transaction that you complete will also have fees. These fees can vary greatly, and you should spend plenty of time researching and shopping around for a high-risk merchant that has fees that meet your budget and finances. Most merchants will charge .5% to 5% of the transaction amount per sale. Additionally, there will be $.20 to $.30 per transaction. Finding a merchant provider that has great rates, low fees, and amazing service may seem extremely difficult. Due to the nature of any high-risk business, you’ll likely end up paying higher fees than a traditional business. But there are still plenty of merchant providers that can provide great rates and low fees.
Do you Need a High-Risk Merchant Account?
Merchant providers have classified many industries as high risk. These types of businesses are prone to excessive chargebacks, refunds, and fraud. Unfortunately, if your business fits into one of these categories, you will need to seek out a high-risk merchant account for your company. Below are a few examples of industries that will require high-risk merchant accounts
Finding the Right High-Risk Merchant Account for your Business
A high-risk merchant account will inevitably have fees associated with it. These charges can vary greatly. We encourage anyone searching for a high-risk merchant account to research the top providers and do their due diligence before signing a contract. Many providers may practice predatory services. Thoroughly read your contract and terms of services before signing on with any high-risk merchant provider.
Call 5 Star Processing to get high risk merchant account fees paid easily.