Credit cards are an integral part of everyday life for many of us. For instance, being able to accept credit card payments is a must for the majority of businesses today. However, finding the right credit card processor or merchant account provider can be challenging for businesses operating in certain industries such as online gambling, pharmaceuticals, and subscription-based businesses. Let us gain more insights into the concept of credit card processing for high-risk businesses to gain a clear and complete understanding.

Before we get started with insights on high-risk credit card processing, let us explore some interesting statistics associated with credit card processing.

• Non-cash transactions are expected to hit approximately 281 billion transactions by 2026 in North America alone. The numbers are 467 billion and 1,232 billion respectively for Europe and Asia-Pacific.
• Visa, Mastercard, American Express, and Discover are the four primary types of credit cards. Visa leads the way with 52.8% of cards in circulation followed by 31.6% for MasterCard and American Express and Discover both in single digits.
• The most popular eCommerce payment methods are expected to be digital wallets (54%), credit cards (16%), and debit cards (10%) by 2026.
• The value of global mobile payments is expected to grow at a CAGR of 36.2% from 2023 to 2030.

Let us now move our focus to the concept of credit card processing high-risk merchant accounts.

High-risk merchant accounts refer to specialized financial services that cater to businesses considered as high risk because of certain factors. These businesses commonly experience high risks of fraud, chargebacks, or industry-related risks. These accounts are offered to businesses to help them accept credit card payments while mitigating the associated risks.

Businesses that belong to the following categories are termed as high-risk by credit card processors or merchant account providers:

• Pharmaceuticals
• Nutraceuticals and Dietary Supplements
• Subscription-based Services
• Online Gambling and Casinos
• Adult Entertainment
• Telemarketing
• E-cigarette and Vape Shops
• Travel and Tour Agencies
• Subscription-based Services
• Debt Collection Agencies
• Tech Support and Software

The above list is not exhaustive and credit card processors or merchant account providers may categorize other businesses too in this list depending on the probability of refunds, chargebacks, and many other factors.

What makes an industry or a business a high-risk candidate?

Let us understand this with the help of some facts associated with credit card processing (high-risk merchant) solutions.

• Low-risk businesses: Businesses with average transactions of less than $500 and less than $20,000 in monthly sales are considered low-risk businesses. Moreover, those in a low-risk industry (such as books, home goods, and clothing) and with a low chargeback ratio (less than 0.9% of total transactions) are categorized as low-risk businesses. Also, businesses that don't facilitate recurring payments, conduct business only in the United States, and accept a single currency as payment are categorized as low-risk businesses.
• High-risk businesses: Businesses with average transactions of $500 or more and more than $20,000 in monthly sales are considered high-risk businesses. Moreover, those in a high-risk industry (such as forex, adult entertainment, travel, and gambling) and with a high chargeback ratio (more than 0.9% of total transactions) are categorized as high-risk businesses. Also, businesses that facilitate recurring payments, conduct business internationally, and accept multiple currencies as payment are categorized as high-risk businesses.

Now that we have gained some understanding of the concept of credit card processing (high-risk merchant) solutions, let us now move our focus to the pros and cons of high-risk merchant accounts associated with credit card processing for high-risk businesses.

Pros of High-Risk Merchant Accounts

• Increased acceptance: High-risk merchant accounts offer viable credit card processing for high-risk businesses that otherwise struggle to easily secure traditional merchant accounts.
• Easy and simplified access to payment processing solutions: High-risk merchant accounts deliver seamless credit card processing (high-risk merchant) solutions to expand the customer base of high-risk businesses.
• Chargeback Protection: Many reputed providers of high-risk credit card processing solutions offer chargeback mitigation services to help high-risk businesses mitigate the impact of chargebacks.
• Customized Solutions: When it comes to credit card processing for high-risk businesses, High-risk merchant account providers provide innovative solutions to meet the specific and unique needs of high-risk industries such as gambling and forex.
• Global Reach: High-risk credit card processing solutions help businesses categorized as high-risk to accept credit card payments from customers around the world.

Cons of High-Risk Merchant Accounts

• Stricter Underwriting: Credit card processing (high-risk merchant) solutions for businesses categorized as high-risk are often characterized by detailed and rigorous scrutiny of the risk factors and the financial reports of the business.
• Limited Options: There may be limited choices when high-risk businesses search for a credit card processor or merchant account provider, which may result in less favorable terms for them.
• Regulatory Challenges: Businesses categorized as high-risk may face highly stringent regulatory requirements, which result in additional compliance challenges.

Why PAYCLY is the right choice for credit card processing for high-risk businesses?

PAYCLY is one of the most trusted and successful providers of high-risk credit card processing solutions. Furthermore, it has years of expertise in helping high-risk businesses accept credit card payments at the most favorable terms. Also, PAYCLY understands the unique challenges, pain points, and requirements of high-risk businesses.

In addition to these advantages, PAYCLY offers highly customized credit card processing (high-risk merchant) solutions such as fraud prevention tools and chargeback management. PAYCLY focuses on implementing the highest standards of security measures when it comes to credit card processing for high-risk businesses to protect sensitive cardholder and financial information while complying with industry standards such as the Payment Card Industry Data Security Standard (PCI DSS). Also, PAYCLY is globally renowned for providing access to knowledgeable and responsive customer support to quick issue resolution is just a few clicks away for high-risk businesses.

The list of advantages associated with PAYCLY doesn't end here. It allows high-risk businesses to accept payments from all parts of the world. Also, PAYCLY offers a streamlined onboarding process that facilitates quick merchant account approval and setup.

Visit us at: High risk payment processors