A merchant must be aware of the risk level to know. And which
documents they will need and what procedures they must follow. Because merchants are usually not aware of the risk levels.
So, continue reading to learn exactly about what High-Risk
Payment Gateways are. And what to consider when applying for a High-Risk Gateway.
Risk Aspects for an online merchant to be deemed High-Risk
There are some risk factors that a payment service provider
may consider high-risk. But every payment service provider has a different set of criteria for high-risk businesses. But here are some
factors that you can expect may be labeled high-risk.
- High transaction volume. Merchants may categorize as high-risk. If they have a high average transaction
rate or high transaction volume. Because if a merchant processes more than $20,000 payments in a month or has more than $500 in an
average transaction. So they can be categorized as high-risk.
- Accept payments globally. If a merchant deals in countries that are considered high risk of fraud.
Or maybe they come in a high-risk category (countries except for the U.S, Canada, Japan, Australia, or European countries).
- New business. If a merchant never processed payment before. And also has a minimum history of
transactions. So they can consider high-risk because of not having a track record.
- Industry Type. Whether a merchant has a spotless record. But they may be labeled high-risk. Because
the industry in which they are working is considered at high risk of frauds, returns, or chargebacks. For instance, subscription-based
industries are labeled high-risk. Because most people sign up for a trial but forget to cancel their payments. But when they look at their
statements and find some remaining charges. Then they file a chargeback issue for that payment.
- Poor Credit History. If a merchant has a poor credit history, they may be considered high-risk.
What online businesses are regarded as high-risk?
We suggest that merchants should always consult their payment
service provider. And to ensure that they will accept payments for these types of high-risk businesses.
So, there are some examples of high-risk businesses:
- Financial Services
- Accounting Services
- Legal Services
- Debt services
- Newspapers and Print Publications
- Transportation and Trucking
- Direct Marketing
- Online auctions
- Online Gambling
- Adult Entertainment
- Real Estate
- Firearm dealers
- Oil and Gas
- Travel Agencies
- Telecommunications (VOIP or Calling Cards)
- Online dating sites
High-Risk Payment Gateways have to meet some challenging
limitations. But they will also arrive with advantages such as.
- Recurring Payments. Recurring payments requires for all High-Risk Payment Gateways but not for low-risk ones.
- Expand Globally. High-Risk Payment Gateways do not have limitations in the area of taking online payments. So, online merchants
can also receive payments globally.
- An enormous variety of services or products. Because a high-risk merchant account has to go via a stringent screening process.
But the online business authorizes to deliver a broad range of services.
- Numerous Payment Methods. A High-Risk Payment Gateway has access to several payment modes. And this assures the consumers that
they have access to their preferred payment mode.
How can I get a High-Risk Payment Gateway?
After qualifying for a High-Risk Payment Gateway. The
merchants will have to follow these steps to get one.
- You will have to find a reliable payment processor or merchant service provider. And that provides High - Risk Merchant Account
as per your business requirements.
- Then you will need to send an application to open a merchant account. Because most payment processors accept online applications.
- You will need to undergo a detailed analysis of business operations and financial statements. And the payment processor's risk managers
perform that analysis procedure. So, they can analyze the credit history and the processing history of the applicant. And also chargeback
volumes, total processing volume, and the number of transactions. So, the merchants have to submit a list of all the shareholders or
- Then risk managers will decide. Whether the business qualifies for a High-Risk Payment Gateway or not.
Every payment service provider dealing with High-Risk
payments solutions analysis every business in particular. Moreover, they will check everything from payment frauds and scams to the
And after knowing everything about your business. They will
provide or deny payment processing services to high-risk merchants.
Factors to consider when opting for a High-Risk Merchant Service Provider
Merchants searching for a High-Risk Payment Gateway provider
have to consider these factors.
- Technical Support. You must check how the provider manages technical issues. And that can prevent customers from completing
transactions. So ask them about the onboarding process and describe the features. That you have at your platform to receive money from your clients.
- Security. Most high-risk merchants attract more cyberattacks and frauds. So, they will need protection to keep them safe.
- Payment Methods. Merchants have to decide what payment methods they want to accept. And they can also choose among ACH
payments, credit cards, eWallets, and wire transfers.
- Chargeback Help. Every business faces chargebacks. So, when you are going to select a high-risk payment service provider,
it is essential to know that are they handling chargeback issues. And helping merchants to minimize these issues. A reliable payment
service provider knows how to support high-risk merchants with chargebacks.
- PCI DSS Compliant. Get a payment service provider. That complies with the PCI DSS security standard council.
Operating a high-risk business can be typical. But it can
provide great rewards. After understanding what a High-Risk Payment Gateway is. Get your documents ready in order. And start accepting
online payments for your products or services.
By having PayCly by your side. You can avoid many serious
issues and ensure a seamless growth of your online business.