What Is a High risk merchant account?
High risk merchant accounts pay higher handling expenses to represent high-risk. Get the best high risk merchant services today with 5 Star Processing.
Why you need a high risk merchant account?
Banks and other financial institutions use risk calculations as a major part of their day-to-day operations. When they come across a customer who can be categorized as having a high-risk business, it’s common for them to reduce their dealings with that customer.
Today, however, it encompasses close to 100 different industries and business types – so the probability of running a “high-risk business” is very high. And if it’s not on that list today, it just may be added tomorrow. Of course, these businesses still exist and many still turn a profit… But it’s usually not thanks to any local bank. Instead, they go to a high-risk merchant account provider who can set them up with a reliable account that won’t get shut down because of a label. And a common option is to get a high-risk merchant account offshore.
Advantages of a high risk merchant account offshore
With this type of account, your business can continue making sales, processing credit cards, and otherwise collecting payments even if:
- Your turnover increases dramatically
- You experience a high refund rate
- Your chargebacks go up
Traditional banks will often associate these events with fraudulent activity, which is why they won’t deal with high-risk industries. Especially chargebacks are seen as a bad sign – but the truth is that some industries just experience a higher rate of chargebacks. Often it’s not in any way the fault of the business, but rather a predatory behavior by the customer who tries to get their money back in spite of having received the product or service that they willingly purchased.
Get a high-risk merchant account offshore with 5 Star Processing
Here at 5 Star Processing, we’ve been specializing in high-risk industries and businesses for more than two years. We can open a high-risk merchant account offshore or domestically – the choice is yours. Our concern is for your business and its ability to process payments so that you can rest assured that your cash flow won’t be interrupted.