If you're a high-risk merchant, you know that finding a quality merchant account can be difficult. You may have been turned down by banks or other traditional financial institutions, or you may be concerned about the high fees and restrictions that come with many high-risk merchant accounts.
Fortunately, there are now high risk merchant services online that can provide you with the account you need without the hassle and expense of a traditional merchant account. Here's what you need to know about high risk merchant services online.
What Are High Risk Merchant Services Online?
High risk merchant services online are specialized merchant accounts that are designed for businesses that are considered to be high risk. There are a number of reasons why a business may be considered high risk, including:
The type of business - Some businesses, such as online gambling or adult entertainment, are considered to be high risk because of the nature of their products or services.
The size of the business - Small businesses and start-ups are often considered to be high risk because they have a higher failure rate than larger, established businesses.
The credit history of the business - Businesses with poor credit histories are often considered to be high risk because they may be more likely to default on their payments.
The country in which the business is located - Businesses that are located in countries with high levels of fraud or political instability are often considered to be high risk.
What Are The Benefits Of High Risk Merchant Services Online?
There are a number of benefits that come with high risk merchant services online, including:
No need for a physical storefront - Many high risk businesses, such as online businesses, do not have a physical storefront. This means that they cannot accept credit or debit cards in person. High risk merchant services online allow these businesses to accept credit and debit cards online, which can greatly increase their sales.
No need for a bank account - Many high risk businesses do not have a bank account because they have been turned down by banks or because they are located in a country with high levels of fraud or political instability. High risk merchant services online allow these businesses to accept credit and debit cards without a bank account.
Lower fees - High risk merchant accounts often have higher fees than traditional merchant accounts. However, high risk merchant services online often have lower fees than traditional high risk merchant accounts. This means that you can save money on your merchant account fees.
Greater flexibility - High risk merchant services online often have more flexible terms than traditional merchant accounts. This means that you can tailor your account to meet the needs of your business.
What Are The Disadvantages Of High Risk Merchant Services Online?
There are a few disadvantages that come with high risk merchant services online, including:
Potential for fraud - Because high risk businesses are more likely to be the target of fraud, it is important to choose a high risk merchant service that has strong anti-fraud protections in place.
Higher fees - As mentioned above, high risk merchant services often have higher fees than traditional merchant accounts. This is because high risk businesses are more likely to default on their payments.
Restrictions on transactions - High risk merchant services often have restrictions on the types of transactions that they will process. For example, some high risk merchant services will not process international transactions.
