PayCly Blog

How High-Risk Merchant Accounts Find The Suitable High-Risk Payment Processors?

Are you running an online business with a higher risk of chargeback? If yes! Then, of course, you ought to need a high-risk merchant account to accept credit card payments. Today, Everyone wants to make payments digitally, and to receive digital payments; merchants ought to require a merchant account. But the main point is how a high-risk merchant can get it because most service providers deny working with high-risk businesses.

Most high-risk enterprises thrive in today's market because of the high-risk payment gateway and high-risk merchant account. For example – Forex is one of the most liquid markets in this world and is booming today. The preliminary global data from the Bank for International Settlements 2022 Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Markets Activity indicates that the daily average foreign exchange market trading in April 2022 was US$7.5 trillion.

So, with this figure, you can imagine how big is the forex market. But, to do this business, a forex merchant account and a forex payment gateway are essential.

Forex and all high-risk businesses require a high-risk gateway and merchant account to receive funds from their customers. But, the most vital work is to find a suitable high-risk payment processor like PayCly.

Here, in this blog, we will discuss the high-risk merchant account. So, let’s start.

What is a High-risk Merchant Account?

A merchant account is a type of bank account intended for businesses. These banks are conjoined with credit card processing companies, allowing merchants to accept payments from various cards. The key benefit of having a merchant account is that merchants can hassle-free accept credit/debit card payments online. The high-risk merchant account is available for the merchant with a more substantial chance of fraud and chargebacks.

High-risk merchant account service providers offer businesses the same opportunities as traditional service providers. But, High-risk merchant accounts have higher processing costs and penalties, but they can be crucial for companies looking to remain competitive in today's competitive commercial market.

How High-risk is Merchant Account Different From Low-risk Merchant Account?

An account with a high level of risk and one with low risk are very different. Businesses with high threats require a high-risk merchant account because these businesses cannot use a regular or low-risk account. Let's have a look.

High-risk Merchant Account Low-risk Merchant Account
A high number of cancellations Minimal cancellation of orders
Operates in a high-risk industry Work in a low-risk industry
Average credit card transactions above $500 The average credit card sale is less than $500
The average monthly sales volume is above $20,000 The average monthly sales volume is less than $20,000
They offer recurring or subscription payments. The business usually sells low-risk items.
Has to deal with fraudulent customers Low to nil fraudulent customers
High chargeback ratio Low chargeback ration
The business has a poor credit score The industry has a strong credit score
Allow merchants to accept multi-currency Allow only one type of currency

Does High-risk Merchant Account Impact Your Businesses?

In a simple sentence, you can say Yes! A high-risk merchant account affects your business. Let’s look at what you have to face with your high-risk businesses -

  • If you choose a high-risk merchant account, you must pay higher fees than a standard merchant account.
  • The opening of a merchant account for a high-risk business requires additional protection.
  • There is also a risk that you may be subject to restrictions, such as a monthly transaction cap or a set amount of cash that must be set aside.
  • A high-risk merchant must pay greater costs to acquire the various services because of the significant risk involved.
  • Many service providers reject contracts from high-risk companies, so you must find a high-risk payment processor that provides you with a high-risk merchant account.

Ways To Find The Suitable High-risk Payment Processor -

Once you know your business is high-risk, it takes extra effort to find secure high-risk payment processors compatible with your business, but this task is possible. So, no need to worry if your business is high-risk.

Let’s have a look at how to find a suitable high-risk payment processor for your high-risk businesses -

Be Aware of Your Risk Factors.

Identifying the high-risk elements connected to your company is the first step. Before making any decision, clear all your doubts. Ask some general questions to your payment processors like -

  • How much experience do they have?
  • What is the chargeback policy?
  • What is their fee structure?

Get Your Financial Statements Together

Potential payment providers will evaluate your business and tax records if you're a high-risk merchant. Ensure that the payment processor for the high-risk merchant account you choose has experience handling high-risk customers. Additionally, thoroughly study the terms of your processor's contract to understand the criteria used to identify high-risk merchants.

Always be Transparent With Your Payment Processor

Being honest and forthright with your merchant service provider is essential. It is advised that you tell the truth in your application because giving false information about your business will almost always result in the deletion of your account, the suspension of your high-risk merchant account, or both.

Standards for Security And Check Fees

To understand any per-transaction or percentage-based fees they will be charged, the merchant should check all of the terms and conditions of payment processors.

Ensure that the company managing your merchant account is PCI DSS certified and has the appropriate tools and processes to avoid fraud and chargebacks.

Ask About The Customer Support Capabilities

Last but not least, high-risk companies should be informed about the customer support they can expect from the service providers. It implies that your account might be classed in the future because they want to lower your fees and improve your company's reputation.

How PayCly Help You?

Any partner we as “PayCly” work with must have a proven track record and deep understanding of the business, which can ultimately facilitate the application and approval procedures. Merchants can contact us anytime through mail or live chat for their high-risk businesses. We have many years of experience in dealing with high-risk businesses, so we offer you the best possible solutions for your high-risk businesses. Some of the best benefits you can get with us are -

  • We need three to seven working days to approve your high-risk merchant account but with all the proper documents.
  • It can accept multi-currency from worldwide.
  • We offer 100+ payment modes, including credit/debit cards, net banking, mobile payments, e-wallets, crypto-currency, etc.
  • Have PCI DSS level 1 compliance. Also, have high-technology security tools like anti-fraud and anti-chargeback tools.
  • 24*7 customer support services.
  • Easy to integrate.

Which Industries Does PayCly Deal With?

As “PayCly,” we deal with most high-risk industries. Some of the most common enterprises are -

Forex E-commerce
Adult Toys IPTV
SMM Escort
Gaming E-cigarette

Final Thoughts -

Now, you have much knowledge about a high-risk merchant account. Once your business is labelled as high-risk, it is essential to have a high-risk merchant account to accept credit card payments.

Of course, the definition of high-risk varies from one service provider to another. But, the most important thing is to choose the payment processor that perfectly fits your high-risk business needs, which is essential for any merchant.

By choosing PayCly as your payment service provider, you can set up your business hassle-free without any headaches. With PayCly, merchants can minimize the risk of chargebacks and fraud as it has high-technology security tools. It also helps them to run their high-risk business smoothly and assists them in reaching a new level of success.

Contact our expert teams to learn more about our high-risk merchant account services.

Enquiry Now