Why are High Risk Merchant Account Fees so High?

If your business has already been identified as high risk, you might be aware of the difficulties you are going to face while approaching a decent merchant account provider. The probability of a risky business getting rejected by regular banks and processors is high. In fact, if your business deals with products and services like CBD Oil, Forex, Online dating, Adult content, Gambling, etc then you may as well forget about acquiring a regular merchant account.

This leads to businesses then opting for the next best choice – High Risk Merchant Account Solutions. A high risk merchant account is mostly similar to a regular merchant account with the most notable exception being, the rates associated with the former.

When approaching a processor for a merchant account, you may either get outright rejected or your high risk business will be charged higher than what is charged for any other regular business.

Why, then, are High Risk Merchant Account rates so high?

The simple reason why you are charged higher than regular is because of the risky nature of the business you operate. A merchant account is essentially a credit given to you by your processor. When a customer purchases an item and makes the payment, the bank or acquirer deposits the amount to your merchant account and collects it from the customer’s card at a later date. This means a merchant has access to funds before the payment is actually made by the customer.

Apply for High Risk Merchant Account Solutions

Now, after the funds are deposited into the merchant account and when the payment is collected from the cardholder, a lot can go down in between like frauds or chargebacks which puts the processor at a risk. High Risk businesses especially are notorious for racking high chargebacks.

In such cases, processors will obviously look after their interests first to try and avoid any chances of losses. Hence, merchant account providers raise their rates to balance out the risk posed by your business. This is why high risk merchant accounts are so expensive.

While finding a merchant account for high risk business might prove to be a task, you still have the power to negotiate before settling for the right one. Always do your research and ask questions to a merchant account provider. Read the terms and conditions of your contract before signing on the dotted lines and check for any unnecessary hidden fees. Go for a high risk merchant account that fulfills all your requirements at a fair rate.

Forex Merchant Account: High-Risk Merchant Account Solutions For Brokers

The foreign exchange market, or simply known as the currency market, is the largest financial market in the world. With more than $5 trillion traded on average every day, it is also the most actively traded market globally.

The forex market is increasing exponentially. With enough room for growth, the dynamic industry is witnessing constant significant changes. The introduction of new technologies in recent years means new opportunities for traders and brokers alike. It is safe to say then that the number traders and brokers entering the market is only set to grow in the coming years.

The upsurge in foreign exchange firms means fierce competition resulting in the fight to offer the best services and convenience to the traders. And one of the most popular leverage to provide the clientele is the acceptance of debit and credit cards for trading.

The forex industry is a complicated one and because of its risky business nature, it naturally has a few challenges associated with payment processing.

The primary concern of forex merchants is increased cost. As with any other high-risk business, forex merchants are often charged large amounts of money upfront in order to make a profit.

Fortunately, forex merchants can still obtain a forex merchant account with quality solutions and reasonable fees.

Forex Merchant Account: High-Quality and Affordable Merchant Account Solutions

Providing various other secure payment options via your forex platform is a great way to build trust as well as retain customers thereby expanding your business. In addition to being more secure, investors are also likely to deposit a large amount of funds quickly as compared to other payment options.

A popular request from traders is the ability to fund their trading account online with a debit/credit card.

A Forex Merchant Account will not only help a merchant in processing transactions safely, securely and quickly but also allow traders to fund their trading accounts effectively.

Apply for a forex merchant account

All leading forex brokerages accept card payments. With a reputable merchant account provider, forex merchants can have access to numerous benefits resulting in driving sales and eventually making a profit.

You will come across several merchant account providers, each offering their own advantages and features customized to benefit merchants.

Client deposits are important in forex. The possibility to deposit funds guarantees profit for the broker. Also, with regards to payouts, traders want to receive earnings on the same credit card that they have paid from.

The above two important points make it essential for a broker to choose the right forex merchant account solutions for their business. Obtaining a forex merchant account from a specialist processor can prove to be advantageous in solving the deposits and payouts issues.

Debt Collection Merchant Account Solutions for Collection Agencies

The debt collection industry has had its ups and downs over the years but continues to grow impressively nonetheless. The industry witnessed growth across its many verticals including auto finance, healthcare, mortgage lending, and many others.

“Aggregate household debt is expected to continue to grow through 2022, resulting in an increase in potential revenue sources”, as per CallMiner.com. There is a clear need for debt collection, whether in-house or third-party services. Student loans and Health continue to contribute largely to growth in this diverse industry.

The Debt Collection Industry is considered High Risk

An industry whose primary role is to collect payment from clients is viewed as high risk by traditional banks and credit card processors making it difficult to process payments for debt collection agencies.

A number of factors are responsible that make debt collection business extra risky.

Nature of business
Business instability
Potential unsafe business debt
Strict government regulations
Friendly frauds or chargebacks
Merchants using scare tactics to get debtors to pay gives the industry a bad reputation

Providers also require a business to show consistent revenue streams when applying for a merchant account. It especially becomes difficult for start-ups or new businesses to acquire merchant account services since merchant account providers demand a long processing and positive credit history.

Start collecting debt with Debt Collection Merchant Account Services!

How do I get a debt collection merchant account for my business? Regardless of the many obstacles faced by the agencies, there are a whole lot of reputable merchant account providers willing to offer credit card processing services that are tailored to meet the requirements and demands of this specific industry.

The many different types of businesses within the Collection Industry that can avail merchant account services include:

Account, bill, or debt collection services
Collateral recovery and repossession services
Credit reporting services
Debt portfolio collection services
Delinquent account collection services
Fee-based or contraction tax collection services

EMB, International Bank Services (IBS), Instabill are some of the top-rated merchant account providers that offer expert customized services to debt collection agencies.

Get started collecting debt with a Debt Collection Merchant Account with easy approvals and reasonable fees.