A high-risk merchant account offers solutions with no geographical restrictions and affordable options for those who may experience the following issues:
• A high level of, or an increase in, chargebacks
• Bad business credit or poor credit scores
• Having a merchant account application denied by a merchant processor
• Operating in an industry that is high-risk.
• The international merchant is conducting offshore business operations to countries outside of their home base.
How to simplify your high-risk merchant accounts
For those with low credit scores or bad credit, it’s possible to accept charges with a POS or e-commerce gateway. An account can also be set up using mail order or telephone order using comparable merchant rates.
Companies classified as a high-risk industry are not necessarily ensnared into offshore or aggregator accounts. There are options to stay with US accounts.
When companies are operating their business overseas, there are merchant accounts available, whereby, the acceptance of various currencies are available. This availability is not only convenient, but it also simplifies the process for merchants.
Local markets are the primary objective, as well as the specialty of the banks in the United States serving high-risk merchants.
Reserves and rates for high-risk merchants
It’s no mystery that high-risk merchants see high-rate charges. However, this doesn’t have to be the reality for every business. Often, merchant processors believe businesses are high-risk due to chargebacks, program of sale method, processing history, etc. The right bank can help merchants find the account services needed despite this reality. The majority of high-risk merchant accounts have merchant reserve requirements, so it’s critical to find a bank that will help merchants analyze this financial information. That way, merchants have a full understanding of these proposals.