For Businesses with Unique Needs!
Businesses that provide a product or service to a wider customer base often times look to have a merchant account in order to accept online payments. However, getting an application passed for a merchant account is easier said than done for some businesses that are considered to be “high risk” and do not qualify for the traditional merchant account service.
Most merchant account provides believe that a high risk client is not worth the risk and will decline your application to accept credit cards online instantly. This is because catering to the needs of the industries that are included in the high risk category comes along with additional risks that most of the traditional merchant account processors would rather not deal with.
Factors that Makes a Merchant “High Risk”
There are basically two factors that play a role in determining whether a merchant should be considered a high risk. The first is volatility, in other words, businesses that are considered to be high risk because of high susceptibility to theft. For instance, online businesses fall under the high risk category mainly because of the sheer amount of traffic that a website gets, along with the susceptibility to data theft. Whenever a consumer makes a purchase online there is always the danger of their data being stolen. This is a fact that no online business can ignore. But, there is a way to deal with this problem.
The second factor that determines a business as a high risk is the perception of the industry a business operates in. A good example can be given of the online gambling industry or other sketchy industries such as online supplement and healthcare products. In short, any business that indicates a higher level of fraud or data theft, which in turn leads to distrust amongst consumers is considered by credit card processing agencies as a high risk.