A high risk credit card processing high risk pay is the ultimate solution for businesses in the high risk industry. Though these products and services are in demand, it attracts fraud to those using credit cards. In most cases, the customer can use a stolen or fake credit card account and file a dispute that leads to chargebacks. That is how high risk credit card processing highriskpay.com come in.
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What Is a High Risk Merchant Account?
A high risk credit card processing highriskpay.com, is all about high risk payment processors and card networks that view if a business or company is more likely to default on payments, suffer higher chargebacks or commit large fraud.
A high risk business is one with a history of credit issues, is new, and operates in an unpredictable or controversial industry. Businesses such as e-commerce and subscription services often fall into a high risk category as they accept credit cards, not card payment methods where they physically see customers’ cards.
Falling into high risk status means higher payment processing solutions, high card payment fees, and strict terms and conditions surrounding compliance and reporting. When your chargeback rate exceeds the maximum threshold, a business is considered a high risk merchant.
And if the chargeback rate doesn’t return to the required threshold, it becomes impossible for card networks to partner with you. This makes it difficult to accept credit card transaction. If you are a new merchant yet to process prior payments, it’s considered a high risk of fraudulent activities in the business.
Why Would High Risk Credit Card Processing highriskpay.com Consider a Merchant to be High Risk?
As earlier mentioned, there are various reasons for a merchant to be considered as a high risk. However, every high risk credit card processing providers have different criteria and labels for listing elevated risk accounts.
Generally, this is what to expect;
High volume transactions: A merchant account is considered high risk if it has a higher volume of transactions. If a merchant processing fee is over $20,000 monthly or an average of $500, they are considered high risk.
New Merchants: If you are a new business owner and your merchant account is yet to process any prior payments or your transaction history is low, your business is considered to be in high risk categories.
Accepts International payment: If your business associates with international merchants or you sell internationally, there are various changes of fraud cases. More so, if your business accepts credit and debit cards payment without physically seeing the owner, it’s considered high risk.
Low credit score: When a business owner has a low credit score, they fall into high risk categories
Belong to high risk industries: You are considered a high risk merchant if your business falls in the high risk industries. Businesses like ecommerce businesses are considered high risk merchants. That’s because people forget to cancel payments which the merchant later makes chargeback payments.
What Industries are Considered High Risk by High Risk Credit Card Processing highriskpay.com?
High risk credit card processing highriskpay.com, consider the following as high risk categories;
Adult entertainment
Online dating
Gambling
Furniture and electronic stores
eCommerce
Subscription companies
Debt collectors
Multi Level Marketing
Travel agents
Vocational Planners
Why Choose High Risk Pay?
Costs and Contracts
High risk pay offers high risk payment gateways and virtual terminal pricing depending on the merchant’s locality, business type, and processing history.
They have transparent pricing on their website’s Rates & Fees section with a swipe rate at 1.79% plus $0.25 for those with good credit score and their keyed-in rate of 2.19% plus $0.25. For high risk merchants, the rates begin at 2.95 & plus $0.25 and are more likely to be higher.
It also has additional pricing of $10 monthly fees and all qualified per transaction fees for specific businesses. According to high risk pay, they don’t charge setup fees and application fee. They have also not mentioned early termination fee and PCI compliance fee.
Low high risk pay complaints
High Risk pay has received only a few complaints, and none of it accuses it of being a scam. The most common issues that customers cited include a challenging sign-up process and unexpected account closure.
Sales and Marketing team
The company also hires independent sales agents. This has made it easier to smoothen their processes, and it is working. There has yet to be a complaint from any of their customers about their sales services.
What is the Difference Between High Risk Accounts vs Low Risk Accounts
Low risk merchants accounts are also known as traditional merchant accounts. They have fewer chargebacks because their products aren’t questionable. Also, the merchant service providers have a hassle free placement.
It means customers are always ready to pay for their purchases once their credit card statement arrives. Conversely, high risk credit card processing providers have an increased chance of customers bringing the products without paying.
Another difference comes in terms of chargeback percentages. Low risk accounts offer a low chargeback percentage, whereas high risk credit card processing highriskpay.com depends on trouble free transactions.
The provider puts simple stipulations on the merchant account agreement to allow owners to sell only products that are not questionable. When the merchant account starts receiving a charge pattern, then the high risk specialist can end their agreement.
But, for high risk merchant accounts, the loses, charge patterns, and recurring payments are considered before signing the contract. The merchant account also remains active even with post chargebacks.
What is the Cost of Opportunity?
Low risk merchant accounts have some account fees. The merchant account providers can terminate their processing and service fees from transactions. But, for a high risk credit card processing, accounts have higher fees and requirements.
When a chargeback occurs in a high risk account, the payment processor takes money from the business owner, and the customer gets a refund. This is a low occurrence in low risk accounts because providers don’t keep a balance in customers’ accounts. Conversely, high risk accounts keep a specific amount for any duration of up to six months.
Another thing is in the high risk industry, the merchant sets aside 5% of their average monthly transactions in case of a chargeback. To business owners, it means they will have to wait longer to receive money because of the time needed.
Lastly, high risk account holders have higher processing fees. But, their payment gateway solutions and credit cards assist in increasing sales, thus overcoming losses from the chargebacks and retaining money.
FAQ About High Risk Credit Card Processing highriskpay.com
i) What do you mean by a high risk merchant account?
High risk credit card processing high risk pay labels your business as a high risk merchant if you have higher chargebacks, larger transactions, long delivery periods, and fraud cases. However, merchant accounts will have to pay higher fees while considering all factors to calculate the risk.
ii) What type of businesses does high risk credit card processing highriskpay.com accept?
High risk credit card processing highriskpay.com accepts adult entertainment, gambling, subscription, e-commerce, and any other high risk business.
iii) How long can it take to get approval for high-risk merchants?
High risk pay takes between 24 and 48 hours to approve high risk merchants.
iv) Does accepting credit cards have any advantages?
Yes, accepting credit card online transactions has advantages. The transactions are processed quickly, eliminating the waiting period and improving sales volume and cash flow. Besides, most customers prefer using credit card payment processing solutions as they protect them from fraudulent activities.
v) What happens if I have bad credit?
If you have bad credit history, high risk pay offers the highest approval rate of high risk merchant services in the market. Their sole purpose is to help high risk businesses regardless of their business history.
vi) Do I need to have a bank account or a business checking account to accept credit cards?
You will need a bank account and a business checking account to accept credit card payments from customers. If you’re a business owner, you can deposit the money directly to your personal account.
Conclusion
If you’re considering online transaction pricing in your business, choosing highriskpay.com as your high risk credit card processor is a good option. They have assisted various business types to avoid chargebacks and minimize the loss in sales.
In addition to their great customer service, high risk Pay currently has a better business bureau (BBB) rating of A+. Their 24 to 48-hour approval rate, monthly fees, and business owners’ acceptance for those with even bad credit make them reliable and also able to handle higher risk businesses. Whether you have a bankruptcy history or a low credit scores, high risk pay is ready to work with you.
