All About A High-Risk Merchant Account (and how it can help you)

Are you an online business that has a higher risk of chargebacks and are trying to process credit card transactions? If so, you may need to take advantage of a high-risk merchant account. Not sure exactly what that is? In order to open these types of accounts, first, you need to find an acquiring bank that is willing to underwrite your business. It is also wise to use a checklist when considering different merchant service options. In order to make that happen, it is best to ask a reliable payment services provider to help!

What Is It? 

This type of merchant account is a payment processing account for a business that is considered to be a high risk to banks. This means they are more likely to fall victim to chargebacks, therefore they will need to pay higher fees for merchant services. 

Does your business have a history of chargebacks and refunds? If so, the bank may put a rolling reserve on your account. This is a set amount of money that can cover the possibility of fraud or chargebacks. This can differ depending on the business’s payment processor. It usually falls between 5 and 15 percent. The reserve is held from 6 to 12 months, determined on the processing history. 

How Your Business Get A High-Risk Merchant Account? 

First, a business owner must fill out an application online to get a high-risk merchant account. The business must also need to locate a reliable high-risk payment processor to accept payments. It is actually quite simple to apply. Once your business is approved by a bank, you are able to start processing payments via mobile devices or online. 

Be sure to get the following items to prepare when applying:

  • Incorporation certificate
  • Shareholders’ certificate
  • Organizational structure chart 
  • Incorporation certificate and shareholder certificate of other firms in case of being a shareholder   
  • Provide an accurate license number. This must include the name of the organization that issued it 
  • Provide a utility bull of local shareholders and directors, as well as a passport
  • Six months of processing history
  • Prepare your website with website compliance requirements.

Keep in mind that when it comes to running your credit card processing history, it is thoroughly reviewed. If your history is not up to par and includes incidents or states that you lost a previous account due to chargebacks, it will be very difficult getting a high-risk merchant account.

There are multiple factors that will determine whether or not you will get a merchant account. The results are also based on general evaluations and network guidelines of compliance.

Take Advantage Today!

There are many reasons and benefits to getting a high-risk merchant account. The main one of them being that the risk of fraud and chargebacks will be slim. If you own a business that is high-risk, your best bet is to get a high-risk merchant account or a subscription merchant account through a platform that is reliable. The last thing you want to deal with as a business owner Is more stress.

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