Getting a high risk merchant account for the debt consolidation industry

If you run a business in the debt consolidation industry, then there’s a good chance that your company is considered high risk. You may have experienced the hassle that comes from applying for a merchant account and being denied. At High Risk Advisors, we pride ourselves on our ability to help our clients become approved for a high risk merchant account so they can start processing cards and grow their businesses. If you want to learn more about high risk merchant accounts, please contact us or read on.

What is a high risk merchant account?

If your business wants to process and accept credit card payments, then you need a merchant account, which is typically provided by a credit card processor or a bank. There are two types of merchant accounts that your business can apply for: low risk and high risk.

When you open up a merchant account with a provider, that provider is taking on some of the financial risk associated with your business. For example, if your business has a high chargeback ratio and you fail to refund your customers, then your merchant account provider is responsible for supplying those missing funds. For this reason, most merchant account providers prefer to stick with so-called low risk businesses that are less likely to cause a loss in their bottom line. The majority of businesses in the U.S. operate with a low risk merchant account.

But where does that leave the businesses and industries that are considered high risk? Many legitimate companies with sound business models are denied low risk merchant accounts, but they still need to accept credit card payments and turn a profit.

Fortunately, there are merchant account providers willing to approve your business for a high risk merchant account. At High Risk Advisors, we’ve developed partnerships with a variety of banks that specialize in different industries so that we can find the best fit for your business and get you approved. With over 25 years of experience in the high risk credit card processing industry, we know the pain points and challenges that high risk businesses face, and we’re ready to help you start securely processing cards.

What’s the difference between low risk and high risk merchant accounts?

There are some factors that set low risk and high risk merchant accounts apart. High risk merchant accounts are often more restrictive than low risk accounts, and if you’re applying for a high risk account, you should be prepared for some additional costs or limits.

Because high risk merchant account providers are taking on more risk with your business, they’re likely to charge higher rates than a low risk merchant account provider (in order to cover any losses incurred by the high risk business.) There’s not much you can do about this, as it’s just the nature of the industry. However, this doesn’t mean that all high risk merchant accounts will cost an arm and a leg—there are honest providers out there who offer competitive rates and will partner with you to fairly and securely process credit cards. When searching for a high risk provider, ensure that you’re getting your money’s worth—look for providers who offer secure, PCI compliant gateways, comprehensive service, and innovative features like chargeback management.

High risk merchant accounts may also come with more stringent processing caps that limit the volume of credit card transactions you can process each month. These limits can hurt or hinder a growing business, but over time, if you demonstrate your reliability, your merchant account provider may raise your limit so that you can process more cards each month.

Finally, high risk merchant account providers are strict about the level of chargebacks your company can receive. Chargebacks can be interpreted as a sign of a faulty or poorly run business. If a significant number of your customers are officially complaining to their banks about your business, then it may be an indicator that you’re providing bad service. This is how your merchant account provider sees it, and because they don’t want to be responsible for refunding customers if you flake out, many merchant account providers will set a limit for how many chargebacks you can incur over a set period of time.

If your chargeback ratio is over 2%, then your merchant account provider may terminate your account, and it can be extremely difficult to find another provider willing to take you on, so it’s crucial to know what chargebacks are, how to fight them, and how to prevent them.

Despite these limitations, high risk merchant accounts are often a step toward advancing your business. More and more customers expect to be able to pay with credit cards, and giving them this option can secure their future business, increase your profits, and help your business to improve. And not all high risk merchant accounts are a pain—many providers are dedicated to assisting you in a partnership that will help you expand. When you find a reputable merchant account provider, you’re investing in a long-term relationship that can help your business flourish for years to come.

Why is my business considered high risk?

There are a few reasons why your business or industry may be deemed high risk, such as:

• A high chargeback ratio
• A high average ticket price
• A high sales volume with bad credit or no processing history
• Online or eCommerce business
• Offshore business that needs a multi-currency account

To a standard merchant account provider, each of the above points represents a potential risk that could negatively affect their bottom line. In addition, the industry itself may be considered disreputable or risky.

However, high risk merchant account providers recognize that many high risk businesses are the result of hard work, dedication, and sensible business practices. Just because an industry is declared risky doesn’t mean that your business is unreliable, and many high risk merchant account providers are ready to work with you to process cards.

How do I get a high risk merchant account?

The process begins with a simple online application. Once you’ve applied, we’ll look over your documents and determine the best way for you to get approved.

At High Risk Advisors, we work with a number of banks that specialize in providing merchant accounts for different industries. We’ll find a good fit for you with a bank that has historically provided accounts for businesses similar to yours.

Once you’re approved, you can begin processing and accepting credit cards with your new high risk merchant account.

What to look for in a high risk merchant account provider:

When searching for a high risk merchant account provider, there are a number of factors that you should take into consideration. Overall, you want a provider that has your best interests in mind and is dedicated to getting you approved. But you also want to find a merchant account provider that offers top-of-the-line service and additional features such as:

Multi-currency options. If you’re an offshore or online business, there’s a good chance that you have an international customer base paying in several (if not dozens of) different currencies. In this case, you’ll definitely want a high risk merchant account provider that supports multi-currency processing.

Secure payment gateway. Any business that processes credit cards should be concerned about payment security and adhering to PCI standards for safely storing customer credit card information. Search for a merchant account provider that offers secure payment gateways, advanced data protection methods such as tokenization and encryption, and fraud protection.

Experience. Look for a high risk merchant account provider that has extensive experience and knowledge of the high risk credit card processing industry. Years or even decades of experience will give these providers the insight and expertise needed to get you approved.

Partnerships with banks. Every bank that approves high risk merchant accounts has a different preference for the kinds of industries they’ll work with. When searching for a merchant account provider, look for one that has developed partnerships with multiple banks in order to precisely place you and increase your chance of approval.

What services does High Risk Advisors offer?

We offer a number of services that simplify the processing experience and safeguard your business against fraud and chargebacks.

High risk accounts. If you’re an international or domestic high risk business, we can help you get approved for a high risk merchant account. We offer secure credit, debit, and ACH processing; extensive fraud protection through our payment gateways; and over 25 years of experience in processing in the high risk industry. We’ve also developed partnerships with merchant acquiring banks and can find the right fit for you to start processing cards.

Offshore accounts. We offer multi-currency accounts for offshore, online, or international businesses that need to accept more than one type of currency.

Bad credit accounts. Even if you have bad credit, we can help you get approved for a high risk merchant account so you can start accepting credit cards right away.

Chargeback prevention. High Risk Advisors will immediately notify you when a chargeback occurs. In addition, we protect data with tokenization and encryption, identify potentially fraudulent transaction, reduce chargeback fees, and recover lost profits for your business.

To learn more or to speak with a qualified specialist, please fill out our contact form or call us today. We’re ready to answer your questions and get you approved for a high risk merchant account.