If your business falls under high risk categories, you definitely understand hoe payment processing can be problematic. The changes in the payment processing industry have now made it easy for high risk businesses to transact securely through payment processors. These articles discuss everything about a high risk payment processor highriskpay.com. Read to learn more.
Table of Contents
What are High Risk Payment Processors?
High risk payment processors like highriskpay.com payment service providers specializing in payment processing solutions for high risk merchants. High risk businesses are considered high risk merchants as they have a higher risk of chargebacks and fraud cases.
Merchants in adult entertainment, subscription services, e-commerce, and more find it difficult to open merchant accounts from payment processors and banks because of high chargebacks and fraudulent activities associated with their businesses.
The type of services offered by high risk payment processors include chargeback management, multi-currency support, fraud protection. These service providers help high risk merchants reduce any risk associated with their businesses.
The flexibility in their underwriting criteria and a higher tolerance for risk have enabled high risk business owners to open a high risk merchant account and process payments. As a business owner planning to open high risk merchant accounts, ensure you evaluate the contract of the high risk payment processors and their reputation.
What are High Risk Merchant Accounts?
High risk merchant accounts are merchant accounts designed for businesses with higher transactions and are considered high risk for fraud. A high risk merchant account assist in minimizing costs associated with chargebacks, charges, and any other fees resulting from fraudulent transactions.
Though high risk payment processors help high risk businesses open merchant accounts, the chances of these accounts being declined are also possible, making it difficult to get an account approval.
For instance, merchants who sell their products through online platforms are considered high risk merchants by most service providers because they lack a physical location. The purpose of high risk processors is to help business owners be more responsible of protecting their online businesses.
How Does a High Risk Merchant Account Work?
As earlier mentioned, high risks merchant businesses such as travel, e-commerce, and gambling are considered high risk because of higher chargeback risks and fraud cases. High risk payment processor highriskpay.com provides payment processing solutions for high risk businesses.
Here is how a high risk merchant account with highriskpay.com works;
The business owner applies for a merchant account with High Risk Pay. You will provide information about the business.
High Risk Pay assesses your application and determines the merchant’s risk level.
If they approve your application, they will create a merchant account to process your credit card payments.
After that, the business owner merges their payment solution to their payment process or website. They then start accepting customer payments, whether through credit and debit cards.
High Risk Pay handles the processing fees and transactions, including securing fraud monitoring and security.
All the money from the transactions is then deposited into the merchant account.
You can expect stricter processing regulations and higher fees from high risk payment processors, unlike traditional merchants.
Features of High Risk Merchants
A business with high chargebacks has a higher risk involved. Factors that high risk merchant processors differ. For high risk payment processors, highriskpay.com, their main consideration factors s are payment processing history and your industry reputation.
Here is an outline of the overall features of high risk merchant
Average sales volume of over $20,000 monthly
Average of over $500 credit card transactions
High risk businesses that sell their products and services to countries considered with higher fraud levels
Businesses with higher chargebacks and bad credit history
What are Low Risk Accounts?
Low risk merchant accounts are merchants running their business with minimal to no chargebacks and have a solid financial history. Low risk merchant account include online apparel stores, bookstores, pet supplies, retail shops, parking garages, and more.
Payment processors have different guidelines but have common factors around their market. The general features of low risk merchants include the following;
Have a processing history of less than $20,000 per month
Average credit and debit card transactions of less than $500
Low to zero chargeback
Their business industry is considered low risk
Minimal returns
Operating in low risk countries such as Australia, USA, Canada, Japan, and European countries
Why Should You Consider a High Risk Merchant highriskpay.com Account?
A high risk merchant account highriskpay.com, may be essential for any business considered high risk. Traditional payment processing solutions and banks do hesitate to provide high risk merchants with traditional merchant accounts because of increased fraud cases and chargebacks.
This has made it difficult for high risk businesses to accept payments from their customers, thus limiting their business growth. Considering a high risk merchant account from High Risk Pay provides ultimate solutions to such businesses.
They have a high tolerance for the risk involved and are flexible enough with their terms and conditions, making it simple for high-risk merchants to easily obtain merchant accounts and start processing payments.
What Documents are Needed to Open a High Risk Merchant Account?
The documents that highriskpay.com request to open a merchant account varies (listed later in the article). Generally, here are the common documents that risk payment processors ask for;
Bank statements
They will need your bank statements to prove your financial capability and stability to process payments.
Business registration & tax documentation
This will include documents for your business licenses, incorporation, and tax identification numbers.
Processing history
If you have a business processing history, High Risk Pay will need you to provide documentation.
Website & marketing materials
If you fall under the high risk category, you may provide access to your website and the marketing materials. This helps high risk merchant demonstrate their business and check whether it meets the high risk merchant services providers terms and conditions.
Identity and address verification
You may also need to provide government-issued identification and also proof of address to verify your identity.
When applying for a merchant account, thoroughly review the high risk merchant provider requirements, payment processing fees, and any other documentation needed for your application.
Who Needs a High Risk Payment Processor highriskpay.com?
Any business selling their products or services in high risk countries, with an average sales volume of over $20,000 monthly and a history of chargebacks, needs a high risk payment processor High Risk Pay. Merchants face this because of refunds, chargeback claims, and customer cancellations.
Many high risk industries are prone to fraud and chargebacks. So, if your business is among the listed ones, you need a high risk payment processor, highriskpay.com.
Airlines or ticket booking websites
Antiques
Attorney referral services
Annual contracts
Illegal goods and services
Cigarette, Vape, and CBD stores
Casinos, gambling, and gaming sites
Collectibles like coins, currency, and auctions
Dating sites
Collection agencies
e-Books
Event tickets
Financial services, including brokers, indirect consultants, consultants, planners, and advisors
Fantasy sports websites
Health and wellness products
Horoscopes, astrology, fortune tellers, and psychic services
Import and export services
ISP or hosting services
Money transfers
Medical programs
Modelling agencies
Movie and software download
Upload websites
Multi-level marketing agencies
Nightclubs
Offshore corporation services
Prepaid calling cards
Real estate
Smartphone and spare parts sellers
Subscription services
Tour operators
Social networking websites
Vacation rentals
Vitamins and supplement sellers
Weapons sellers
Why Would a Merchant be Considered High Risk?
Merchants are considered high-risk because of the following;
Type of industry
Specific industries and businesses like those listed above are considered high risk because they have a higher chance of fraud cases and chargebacks.
High sales volume
As earlier stated, any business with larger transactions of over $20,000 per month is considered high risk.
Lack of credit history
Merchants with a limited credit history or new businesses that are yet to transact also fall on high risk merchants as the information they have on their business is less to assess the risk level.
Higher chargeback rate
Businesses with a history of higher chargebacks are also considered high risk. This happens when customers dispute a charge on their payment credit card.
Location
Location is also a factor in assessing the risk level of a business. Businesses in higher risk countries or those with political instability may also be considered high risk.
These factors increase the chances of fraud cases and chargebacks, increasing the risk of payment processors. This makes it difficult for high risk merchants to find reliable and trustworthy payment processors. Even with their payment gateways, expect higher fees and strict processing payment processing solutions.
Benefits of Choosing High Risk Payment Processor highriskpay.com
There are benefits to choosing a merchant account from a high risk payment service provider highriskpay.com. It includes;
Reduced risk of merchant account closure
One problem that most high risk merchant face is the risk of their merchant accounts being closed by payment processes. But, with a high risk merchant account, it minimizes the risk of account closure.
Access to payment processing
With a high risk merchant account, business owners have access to payment processing services. This has made it possible for high risk industry to accept credit and debit card payments.
Fraud protection
A high risk merchant account offers a tailored fraud protection service that helps merchants reduce fraud cases and chargeback risks.
Higher processing limits
High risk accounts have higher processing payments and fees, unlike traditional merchant accounts. This has made it possible for high risk businesses to handle larger transactions.
Dedicated customer support
High risk merchant account offers a secure and reliable payment gateway for online payments. This assists in improving the customer experience for businesses because of efficiency.
How Much are the Fees of High Risk Merchant Accounts?
High risk merchant account providers charge higher than the low risk merchants accounts. However, each merchant account provider charges differently to suit your business. The costs are inevitable, so it’s best to be ready for higher processing and account fees.
Some merchant services have short contracts, so you don’t have to remain stuck in them and pay unnecessary costs. High risk payment processors charge a setup fee, PCI fees, and annual/monthly fees. Be careful before signing any contract, as hidden costs are always included.
An early termination fee can also be included, and it applies when you close the account before contract termination. But, with the payment processing industry shifting first, you can get tailor-made agreements. Highriskpay.com allows tailor-made agreements that meet every business’s needs.
How Can I Apply for a High Risk Merchant Account with a High Risk Payment Processor highriskpay.com?
Securing a merchant account with highriskpay.com is simple. First, you’ll fill up their online application form. After choosing highriskpay.com as your payment processor, you will contact their advisors, who will guide you through to a bank that suits your business needs. Once the bank approves, you’ll start online payment processing.
These are the documents needed to open a merchant account with highriskpay.com include;
Certificates of shareholders
·Certificate of incorporation
Shareholder organizational structure chart
License number
Organization name
Processing history, including chargeback percentage for the last six months, total transactions, and sales volume
Shareholders holding over 15%, copies of passports, and utility bills of local directors
Conclusion
Even with the documents listed above for opening an account with High Risk Pay, their terms and conditions can be stricter than the normal payment processors. Also, you may get some additional charges, so always check the contract carefully before signing it. Highriskpay.com is the best high risk specialist and reliable merchant service provider.
