Ways In Which One Can Open A High Risk Merchant Account.
There are several reasons that will make you be deemed as a high risk customer when opening open a merchant account. You will find that in some cases you are forced to start out a new business or even you may have had a number of chargebacks made to you previously. In such cases, the processing fees charged at you will be more than the usual amount to be paid as well as the access to credit and debit cards will not be stopped. In some cases they will demand too many papers to assure them of the business you are doing as well as the institution papers will be required. In dealing with the high risk merchants, you will need to consider a number of these given factors here.
The reason as to why you are named a high risk should be your first concern. In most cases it is usually depended on the length of time you have been in the business and if it is a startup then you are considered a high risk. Your business has been in operation and in many cases if you are a startup customer then you will be deemed as a high risk client. There are some categories of the business venture that are mostly considered as high risk businesses like the drug stores like dealing with supplements and membership clubs. Due to the number of frauds in the online market, then such businesses are prone to chargebacks in which case affects the business. In such kind of businesses, there is more risk involved in dealing with it and therefore it will be very easy to be known as the high risk jobs.
In other cases they do look at the history of the business to be able to rate you as a high risk or not. All businesses are termed as high risk when they are starting out irrespective of what they are into doing. For the companies that have been in the industry for a given period of time then you will find that they are able to get a very good traditional merchant account once they show a clean business history.
The other factor to consider is the kind of customers your business deals with. For the businesses that deal with clients that comes from the outside world, you will find that they are named as a high risk kind of merchants. This is because most of your transactions will be made through the use of credit cards which are not physically present which gives a lot of chances when dealing with chargebacks.
When dealing with the high risk merchant accounts, you must ensure you have all your documentations right since you will be required to present them.