While running a business, you’ll eventually need a merchant account. Your high-risk merchant account is vital if you plan on accepting and processing electronic payments and credit card transactions. If you are doing business online, all your transactions will come through your instant high-risk merchant account.
The merchant provides efficient processing of payments. Electronic payments are sent through your terminal to the merchant bank. They will check for available funds and provide a variety of security checks.
- They will charge you .5% o 5% of the transaction amount.
- There will also be a $.20 to $.30 per transaction.
- Most merchants also require a monthly fee.
What is an Instant High-Risk Merchant Account?
Many businesses are considered high risk and will require a high-risk merchant account.
There are a variety of factors that can cause your business to be high risk. Moreover, online businesses, shops that have a high risk of chargeback, large average credit card transactions, and bad credit history could cause you to require a merchant account.
Examples of industries that are considered high risk include:
The travel industry, airlines, airplane charters, tour operators Hotels, restaurants, moving companies Antiques, auctions, electronics, pawnshops, Casino, gambling, adult-related, drug paraphernalia, vape companies, fantasy sports websites Bankruptcy law, debt collection, financial planning Social media services, SEO services, VoIP services Multi-level marketing, horoscope services.
- There are many more high risks industries as well.
- Not sure if your business is in a high-risk industry?
- 5 Star Processing can help.
- Their team has years of experience helping companies get a merchant account that meets your needs and budget.
When do I Seek out an Instant High-Risk Merchant Account?
- Firstly, If you are in a high-risk industry, you’ll need to seek out a high-risk merchant account.
- Traditional merchant accounts will deny service to almost every high-risk industry.
- If your average monthly sales volume is over $20,000 and your average credit card transaction is over $500, you’ll need a high-risk merchant account.
- If you accept multiple currencies, you will normally require a merchant account.
- Do you offer subscription services, digital products, software downloads, or seasonal items? Your company will need a high-risk merchant account.
Chargebacks and Poor Credit Problems
If your company has an excess of chargebacks or poor credit problems, you may need to seek out a merchant account.
- Chargebacks can cause a variety of problems for online companies.
- If you sell products online, you run a greater risk of accumulating chargebacks.
- Stolen cards and credit card fraud is a huge problem.
- Certain industries are prone to chargebacks and will require an instant high merchant account.
- Does your business have credit problems?
- If you’ve had problems acquiring a merchant account due to credit problems, it might be time to seek out a high-risk merchant account.
- A merchant account is your only option if your business has poor or bad credit.