Limits to Businesses Accepted for High Risk Merchant Accounts

If you are a relatively new high risk merchant, you may be surprised at how difficult it is to obtain a merchant account if you work within certain industries. Businesses such as adult entertainment, online gaming and casinos, multilevel marketing and high volume sales retailers are considered somewhat risky, and therefore merchants who run these organizations have some difficulty opening up a stable merchant account. However, there are many processors and high risk merchant account providers who actually specialize in accounts for merchants within high risk businesses—these institutions may be located both domestically and offshore.

So, are there any types of business that will find it difficult to obtain a merchant account, even when applying at an institution that specializes in high risk merchants? Yes:

Irregular Extreme High Volume Sales: Due to the fact that sporadic, high volume sales is a red flag for money laundering, businesses that have a sudden dramatic increase in sales volume will generally find it difficult to obtain a merchant account.

Poor Business Credit History: Most high risk merchants have some degree of imperfect credit in their history, which can be overlooked in favor of a current clean record. However, merchants whose track record does not indicate an increasing willingness to improve their credit will run into trouble opening up new accounts.

Insufficient Chargeback Reduction: Chargebacks are an inevitable part of doing business using sight-unseen credit card transactions, but they can be reduced. It takes a commitment to increased security measures, including using the AVS and CVS systems, along with specialized steps such as strict shipping procedures, to sufficiently reduce the number of chargebacks your businesses experiences.

By taking the time and care to address the previous three characteristics, high risk merchants can improve their chances of obtaining a merchant account. For even more information on how merchant accounts can grow your business, contact High Risk Credit Card Processor. Our professionals can connect you with high risk merchants from over 20 different processing sources, including U.S. Banks and domestic Merchant Accounts, International Banks and Offshore Merchant Accounts, 3rd Party Payment and ACH Payment Processors, Check and Debit Card Processors and a range of other types of accounts. Whether you need one merchant account or many, High Risk Credit Card Processor is ready to meet your high risk business’ processing needs.