High Risk Merchant Account

There will always be merchants working in fields that have risky customers. There is often great profit in taking on risk others won't, but very few merchant account providers want anything to do with risk.

So if you work in a field that has high turnover, high credit rates or increased risk of fraud, you need to find a merchant account provider that provides high-risk merchant accounts.

Rule #1: Cost

Because they are taking on more risk, merchant account providers in these fields will typically charge more. In profitably niches, it is still worth the cost. But keep that in mind and be realistic.

A heavy setup fee is charged for a high risk merchant account, whereas fees for the other type of accounts are very small, some of them with no setup fee at all. Similarly, the credit card processing rates for high risk merchant accounts are also comparatively very high.

Who needs a High Risk Merchant Account?

Here is a list of what a typical high-risk merchant account provider offers:

• Travel (including vouchers, high tickets, reservations, accommodations)
• Medical billing is acceptable in the US
• MLM--we can only do some MLM's, not all. If they are a "get rich quick" scheme we most likely cannot accept it. But, if it is a good business model, with a tangible service or product behind it (like phone service or vitamins etc), then we can work with it.
• Electronics--high tickets etc for B2B and home-based drop-shipping electronics is acceptable
• Timeshare & real-estate advertising merchants
• Replica products- US Domestic Accounts
• Herbal supplements (not steroids, but herbal supplements are okay in the US)
• Financial consulting (tax advice or investing sites--like monthly Stock/commodities tips/tools, real-estate, etc)
• Calling/Phone cards /VOIP Services
• High tickets & high volume--Jewelry etc
• Adult--both products (DVD's/toys) or content is fine (video downloads/photo galleries/memberships etc). Adult merchants must register with Visa/MC to be legit in the US. DVD rental programs are okay.
• Telemarketing--Outbound depends on product line or history. Inbound is fine.
• Escort Merchants --No registration needed, can be done as retail with non-qual rates applying unless they have a wireless terminal (cost is $550 or so for a wireless terminal), otherwise imprints needed
• Dating Merchants--must register with Visa/MC
• eBook or Software/Digital download merchants
• Tickets--sporting, event (depends somewhat on biz model, how far in advance etc)
• Prepaid debit cards
• TMF merchants- both retail and Internet
• Demand Draft Check program- Check 21 compliant
• Canadian Retail and Internet Accounts
• Private Label Processing Gateway- Certified on FDMS Nashville, Global East, Concord Bypass, Paymentech Salem and Tampa, Vital, Pago plus a number of other International Platforms. Includes modules for recurring billing plans as well as ability to set up Agents
• DPOS software- Virtual Terminal Ð for small to medium sized businesses
• High Risk ACH program
• International Offshore Merchant Accounts ( must not be start up companies)

Offshore

Typically banks are simply too wary and cannot reasonably take on the risk. Merchant account providers act as the middlemen.

It is typically never possible to procure a high risk merchant account from a domestic source. Under such a condition the best course of action is to apply for a high risk merchant account from international or offshore sources.

Tips to keep in mind

• Experience: Your length of time in business matters because merchant account providers want an assurance that you understand the business environment in which you operate. Especially in high-risk fields, such as gambling, adult, pharmaceuticals, etc, merchant account providers want to know that you can identify the potential risks you face, know how to prevent or reduce fraud, and understand how to manage credit card acceptance.
• Good credit history: Your credit report will show how well you've repaid past loans, and if you've had any liens, judgments or bankruptcies filed against you. A favorable credit history will go a long way toward establishing your credibility as a prospective merchant.
• Past accounts: And if you've had an earlier, well-maintained merchant account, it's a positive indicator of how you're going to deal with your new processor. If your previous processor terminated your merchant account because you defaulted on it, or if you incurred too many chargebacks, this may negatively impact opening a future account.

---

| Homepage | High Risk Merchant Account |

---