What High Risk Merchant Account is and How it Works?

High-Risk Merchant

If you run a business that is prone to chargebacks and refunds, you need a high-risk merchant account. By definition, a high-risk merchant account refers to an online payment processing account meant for businesses that fall in the “high-risk” category for the banks. These businesses have to pay significantly higher charges for availing merchant services than those from low-risk or moderate-risk categories.

Let me elaborate it further. When working with a merchant, the merchant account provider/merchant processor/acquiring bank provides the merchant with credit and debit card processing equipment, software, and services needed for moving payment funds directly from the buyer’s (cardholder) account to that of the seller (merchant). The service providers coordinate with the credit card providers and banks on the merchant’s behalf as the process entails authorization & settlement processes involving multiple parties.

Most e-commerce and other online (high-risk) businesses in which recurring credit/debit card payments are involved fall in the “high-risk” category.

Merchants that have a high-risk merchant account can minimize the financial losses caused by the chargebacks and refunds. At the same time, if you have a high-risk merchant account, your customers will find it easier and safer to do business with you. So, you need a high-risk merchant account to instill confidence among your customers that they are dealing with a merchant who has taken care of payment security and that their payments are 100% secure.  High-risk merchant service providers can help you add value and credibility to your business. As a result, you can expect more customers, increased sales, increased revenues, and great success in your business.

Businesses that need a high-risk merchant account in USA

The travel industry is an excellent example of a high-risk business as cancellation rates are very high and that results in many refunds and chargebacks. It is important to know how to fight chargebacks if you are in the travel industry or other high-risk sectors including forex trading, gambling, drug sites, adult themed sites, airlines, pornographic merchants, auctions, antiques, bankruptcy attorneys, brokering, casinos, dating websites, life coaching, sweepstakes or lotteries, money transfer, online gaming, real-estate, and many more.

How to apply for a high-risk account?

To apply for a high-risk merchant account, you can fill out an online application. The process of applying the high-risk account is though simple, you would better leave it to the expert to avoid hassles. With Payment USA, you can have your high-risk merchant account ready in minimum time and at the lowest processing fee.

Having catered to the merchant account creation and maintenance needs of countless high-risk merchants as well as low-risk merchants for years, Payment USA has become a name so many emerging and established merchants count for their credit card payment processing needs.  You just have to hire PaymentUSA as your merchant account service provider and all your business needs will be taken care of by the experts. After receiving approval from the acquiring bank, the process of online and/or mobile payments can be initiated.

Why should you have a high-risk merchant account?

Before we talk about the bright side of having a high risk merchant account, it is important to pay attention to the flip side as well. The only demerit of having a high risk account is that you need to pay higher processing rates and fees. You may also need to maintain a reserve in the banks due to the high risk nature of your business. The pros, however, include:

·         Chargeback protection

·         Worldwide coverage

·         Opportunity to grow your business

·         Increased income and profits

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