There is one type of business that is not for the faint of heart – high risk credit card processing business. It is a very lucrative market to engage into because of the sheer volume of transactions that are involved. However, it is also considered one of the riskiest business to be involved in.
For starters, a large percentage of the merchants who apply for this are those who may not have a good credit history and are therefore not eligible to get a merchant account with ordinary payment processors.
The type of business one is involved in may also be a cause for rejection by retail store payment processors. Businesses involved in the adult industry, gambling, escort services and online dating are just some of the high risk business categories that are likely to be rejected by certain global payment solutions.
Multi level marketing and those involved in creating replicas of well known brands or patented products are sure to attract droves of customers. With volume comes a greater percentage of chargebacks if buyers are not well informed with what they are actually paying for.
Given the risks involved, one can not help but wonder how can this not spell immediate downfall to anyone who dare deal with them.
Those who are into the high risk credit card processing business know this. They know that there is a probability that their potential clients are not going to change their ways for them.
This is why they are justified to charge higher merchant account rates. They also employ a team of highly trained personnel who are experts in risk management. They offer solutions that are profitable for all involved. Yes they give merchants with a high volume of chargebacks a chance to open a merchant account with them, but these payment processors will not just sit and do nothing. They do send warnings and are also authorized to close accounts should chargeback percentages continue to escalate.
They also invest in ways to protect the financial information given out by customers.
The customers who pay through them are confident transacting business with the high risk credit card processor.
