All kinds of financial institutions process money. And when it comes to processing money – they are obligated by regulators to classify merchants as low risk, medium risk and high risk merchants. Payment processor will never accept you when they think you process high risk and there are chances that they will lose money. And even if they accept you they will charge very high transaction discount rate. There are few reasons why your business can be considered as a high risk merchant account business. Few reasons are:
- You have lost your previous merchant account due to high chargeback ratio.
- Questionable sales and marketing tactics
- Potential legal and financial liability
- Your credit is really bad.
- Industry known for excessive chargebacks or fraud incidents
- Trial continuity business
- Previous credit card processing is not good enough
- You’ve been branded as terminated merchant (TMF).
OBTAINING HIGH RISK MERCHANT ACCOUNT
If you are not getting the merchant account, don’t worry. There are providers who are specialized in providing payment gateway to the high risk account. It may be a little more expansive, you may need to agree to a high rolling reserve or you may need to send more documents during the on boarding process but you’ll be able to get the payment gateway. First of all you need to find who is able to cooperate with you. We at Merchant Stronghold love to cooperate with merchants that has high risk business category.
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