How Is A High Risk Merchant Account Determined
Your business can be determined as high-risk if it’s an uncertain startup without any track record of chargebacks or if your company chargebacks rise up to 1% or higher. The credit of your company is also something that banks take into consideration. If your credit history is bad, your business will be classified as high-risk. Some popular high-risk services and items that many online sites offer are:
- Online gambling
- Crypto trading
- Adult services
- Selling medicine
- Selling firearms
- Selling jewelry
Pros and Cons of High-Risk Merchant Accounts
Operating a high-risk business comes with a few cons and setbacks. The primary setback of operating a high-risk business are the fees applied to each money transfer. Usually the fees for high-risk businesses are higher than regular ones and many people deter from them because of this without realizing that even with larger fees, businesses of this sort are worth operating.
There are many perks of getting a merchant account for a high-risk business. The primary one is being able to accept payments online and your services will be available all around the globe at all times. The security of the payments is another great feature that payment processors offer. Usually, they are all secure and encrypted with multiple layers so the information of the client can’t be stolen.
High-Risk Payment Processor
Because of the high demand on the market, many payment processing companies have emerged that offer high-risk payment gateways. However, they are not all reliable and fair toward the sellers so finding the right one for your company may take some research. Generally you want the company you pick to have the following:
- Great reputation
- Low subscription fees
- Customizable payment page
- Support of multiple currencies
- Extra merchant account features such as statistics, management and invoicing
- Possibility of accepting payments from many credit and debit cards
- Highly trained and qualified technical team
Documents Needed For High-Risk Merchant Account
Once you decide on a payment processing company for your seller profile, you will need to prepare your documentation so you can expedite the application process. You are going to need the complete documentation of your organization, the status of your company, details regarding your management and shareholders, information certificates, and refund policy. You will also need some personal documents such as ID card, proof of residence and bank recommendation.
If you are in one of the high-risk online businesses, you will have to acquire an online merchant account so you can process card payments and monetize your traffic. It can be a daunting task indeed but it’s not impossible and extremely worth it in the end. This type of account requires some extensive research on your part which can be time-consuming but it has to be done to get to the right payment provider. Having all your documents ready will expedite the process significantly, so check out what is the documentation you are going to need and prepare it beforehand to get your account as soon as possible and start selling online. Once looking for a high-risk payment gateway in the UK, check out PurePay and contact their team of professionals in case you have any questions.