An Overview
High risk merchant accounts are specialized merchant accounts issued by international or offshore credit companies to businesses deemed as “high risk”. While common business dealers can afford standard e-Commerce credit, it is practically implausible for high risk companies to attain such credit. Thus comes the introduction of high risk accounts. Given the conditions under which a merchant can be marked as high risk, there are a number of ways to get access to a high risk account.
The main reason behind a business being treated as high risk is the nature of the business. Banks in general tend to treat businesses having high chances of fraud, arguable products or operational methods with less respect. Keeping in line with that, sectors like online casinos, adult products, debt counseling, gossip lines – for example, are considered high-risk business types. Furthermore, one can be denied a regular merchant account and pushed to a high risk one due to personal bad credit history, as well as bad economic history of the company.
A number of payment and credit processing companies offer up high risk merchant accounts for customers. These companies are generally internet-based, either international or offshore. Since there have been quite a few scam and bad credit incidents in recent times, if you wish to open a high risk account, first make sure to research the integrity and service of these payment processors.
The first thing to consider about high risk accounts is where to apply for one. Since most payment processing services accept application forms at a nominal fee, that isn’t a big concern. Rather, picking out the right company is the primary goal for you. Don’t look for services with the smallest fees or biggest discounts. They can very well come with hidden expenses. Also, don’t fall for misleading ads. When you decide to open an account, read the agreement very carefully. Make sure you go through every single detail. Also, take cautionary steps such as using a different deposit number for the high risk account.
While a high risk merchant account is supposed to propel their businesses forward, many pick the wrong processors that eventually doom the business. Look for positive reviews from other clients, check for integrity, keep your eyes open and you should fare well.
