High Risk Merchant Account
Online merchant that deals with businesses such as dating services, arms and ammunition, adult entertainment, travel, online auctions and debt services, hosting sites, telemarketing business, casinos, tobacco and cigarettes, pharmacy etc. are considered as High Risk businesses. Some vendors are classified as high risk due to other reasons such as high sales volume or past problems.
High risk businesses face enormous problems while accepting payments due to non-availability of High risk merchant account. These companies have huge sales volume however they may not make the expected profit without a merchant account that supports high risk businesses.
Facts About High Risk Merchant Account Services
High Risk Merchant Accounts Are Charged More Compared To General Accounts Because Of The Following Reasons:
- Prone to fraud, have high sales
- Blacklisted by merchant account providers
- Inconsistent credit history
- Businesses dealing with as travel, tobacco and cigarettes, online auctions and debt services, hosting sites, telemarketing business, dating services, arms and ammunition, adult entertainment, casinos, pharmacy etc.
- Inability of vendor with extremely low sales to buy anti-fraud software makes them high risk business
The approval process for high risk merchant account usually takes 3-4 business days. Some of the basic requirements such as recent processing statements, voided checks, business license, 3-5 months bank statements, and recent profit and loss statements need to be provided along with the application.
Avoiding chargebacks, late payment and a proper understanding of the terms and conditions of a merchant account provider is important for not falling under the high risk category.
It is advisable to look for an affordable merchant account provider according to your business. Start-ups should always opt for account providers that offer special plans for small businesses.