High Risk Merchant Account

High Risk Merchant Account

Business needs a merchant account to accept credit cards payments and process the further transaction. Some businesses with good trading nature can easily operate and process cards online for such types of businesses owing a high risk merchant account is a straightforward process. But if your business is consideredhigh risk then it is more difficult to get a merchant account. In such case, you need high risk merchant account services, which is more expensive.

Industries Considered High-risk

While the list below is not exhaustive it does include industries that are deemed high risk. Now high risk does not necessarily mean unprofitable, it simply means that the bank feels there is the strong possibility of refunds, chargebacks, and fraud. These include:

Adult Content

  • Online pharmacies
  • Online Gaming
  • Health and Wellness Products
  • Call Centres
  • Dating websites
  • Forex
  • Nutraceuticals
  • eCigarettes
  • Travel
  • ISP and Hosting Services
  • Mail Order
  • High-volume E-commerce Businesses
  • Money Transfer
  • Prepaid Phone Cards
  • Airlines
  • Antiques
  • Bankruptcy Attorneys
  • Gambling
  • Credit Repair
  • Drug Paraphernalia

What is High-risk Merchant Account?

A high-risk merchant account is classified when there are more chances of fraudulent activitiesand higher chargebacks associated with certain type of industries. And obtaining a merchant account is somehow difficult; IBS is associated with a large number of offshore acquiring banks and large payment processors offering reliable, stable and secure payment processing for most of the high-risk businesses. Our rates are very competitive, unlike other high-risk payment solutions companies. Often, high-risk merchants will pay high-risk rates. However, we have found that we save 98% of vendors on processing fees over what they are currently experiencing whether they have low, medium or high-risk needs. Be cautious because there are many providers who will automatically approve applicants with predatory contracts and outrageous rates. Always check your contract and see if there are standards for minimizing the transaction rates. Larger reserves, rolling reserve agreements and other types of risk minimization can help an applicant obtain the best rates possible.