crucial for your business. Especially in case of online businesses, card
payment is the only option customers have. Third party agencies offer
merchant processing services that include credit card processing to
businesses. But herein lies the catch. While everyone is willing to
support low risk businesses, businesses that are risk do not get as much
support from merchant service providers to help them open a merchant
They are offered only by specialized service providers.
Are You a High Risk Merchant?
qualify for this services if your business is categorized as a high
risk business. The online businesses that come under this category
typically include those in the following areas- adult entertainment
sites, those related to health and beauty such as websites selling
weight loss, skin care, muscle enhancing and other similar products
including nutritional and beauty supplements. Detective services, online
dating sites, lotteries sites, sports consulting sites etc are some
other examples of this businesses. These businesses are inherently risk
for obvious reasons.
This type of merchant services are also
required for high volume businesses, because these are more susceptible
to credit card fraud. Small companies with low volume sales are also
considered because they cannot afford the necessary fraud screening
The individual business/ business owner characteristics are
also important. Businesses not accredited with the local business
bodies, those with poor/inconsistent credit histories, or where the
business or the owner has been blacklisted due to any reason are
considered high risk.
If you are a merchant, you will find it
difficult to get a merchant account, which is crucial to enable credit
card transactions. Hence you need the assistance of merchant service
providers who especially cater to the needs of these type of merchants.
High Risk Merchant Services – What You can Expect
type of merchant account providers charge enormous fees for their
services. Merchant service fees are way higher than those charged for
For setting up a regular merchant account,
often the set up fees are negligible or even nil. In case of these type
of merchant accounts, your high fees start right from this point and
include very high processing fees.
However, considering that
enabling payment by credit card is crucial to the success of your
business, you have no choice but to give in to the demands of merchant
service providers. But as always, you must choose your service provider
wisely and make sure you are not being taken for a ride.
How to Choose a High Risk Merchant Services Provider
around and choose a provider with well established reputation in the
field and who is well spoken of for the range and quality of services
Choose someone who caters to your specific needs. For
instance, depending on the nature of your business, you may require 24×7
Insist on a breakdown of the fees and don’t sign up unless you are convinced about the fee structure.
High risk processing services may not be a very pleasant option. But you cannot escape from it if you want to succeed in your business.