Things you need to know about High Risk Merchant Services
A high risk account is used in a business where chances of fraud are high and needless to say, high risk merchant services are naturally hard to come by. Thus, banks and financial services firms usually refrain from providing services such as online credit card processing and the like to stray away from businesses needing high risk merchant accounts.
What are high risk merchant accounts?
Businesses that are too large where the traffic is significantly higher and involving products and services like mail orders, adult industry (like adult DVDs and toys) online dating services, direct marketing sector, travel and telecom services, membership services, etc are usually classified as needing high risk merchant accounts where chances of fraud are at its peak..
Problems in getting high risk merchant services:
Once a business is classified as high risk, conventional banks usually refuse to handle that merchant account. However, those who do would charge a higher rate for providing high risk merchant services.
What are high risk merchant services?
• Website payments and online credit card processing
• Companion Services
• Membership Billing or Recurring Billing (Weekly, Monthly, Annually)
• Bill Collections or Collection Agencies
• Dating Services / Memberships
• Online Pharmacy
• Outbound Telemarketing
• Travel / Cruise Lines / Reservations
• Call Centers or Telemarketing
• High Volume Merchant Accounts
• High Charge-back merchant accounts
• Ticket Broking
To conclude it can be said that just because your business has been classified as a high risk one and your conventional bank refused to provide you any services, there is no need to panic. Being a high risk business does not mean you cannot avail the above mentioned services, only that there will be lesser providers and the price will be higher .
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