To put it blatantly, high risk merchant account represents a classification in credit card processing with which many processors and banks prefer to not do any business. However, sometimes it might just be simple things like poor credit and high chargebacks that make banks and processors not want to work with you. High risk credit card processing charges per transactions are usually higher, regardless of the rate structure and merchant account. However, you can still find processors willing to work on your business at a reasonable rate if you research well, because the competition in credit card processing is tough, and everyone wants a bigger slice of the pie.
What do you need to learn about high risk card processing?
The phrase ‘one man’s trash is another man’s treasure’ somehow applies here. The associated risk a business has is seen differently by different processors. If your business has poor credit then you can be turned down by some processors while you are welcomed by others. At the same time, some potential merchants can be turned down on the grounds of increased fraudulent charges risk even if they have good credit score. And a business even with a lower fraud risk can have high risk problem if it is about services that are seen as inconsistent with a certain organizations social value or affected by external factors. Travel companies, online gambling, adult content business sites etc are mostly deemed as high risk business. If you have a high risk business then to get high risk card processing services you will need high risk credit card merchant services.
How do you get high risk merchant accounts?
One option is to go for companies based abroad but without oversight and regulation it can be risky. Next option is to choose merchant processors who will use your situation to charge you rates that are almost abusive. So, the right way is to go with a well reputed high risk credit card processing service provider or simply a reputed payment processor that also provides merchant accounts.