High risk merchant services are credit card solutions for merchants who typically work with less than perfect credit, require high-risk processing for their business or have had trouble establishing a credit profile. If you operate either an online or brick and mortar business that caters to the ‘high risk’ market, i.e., anything from medical marijuana dispensaries to fashion boutiques, then you may require high risk merchant services.
The good news is high risk merchant accounts are easy to attain and typically easier to get approved for than traditional merchant accounts. High risk merchants also enjoy: – Lower processing rates: Most high-risk processors offer the most competitive rates in the industry (some charge less than 1% transaction fees)
- Unparalleled customer service: High risk processors treat their merchants like VIPs, offering 24/7 support and processing 99%+ of orders within an hour.
- Easy setup: Signing up for a high risk merchant account is quick and painless — you don’t even need your federal tax ID or SSN.
- Privately owned: Unlike banks, high risk processors are not FDIC insured. However, they are privately owned companies that serve businesses with poor credit or new merchant accounts. Not only do you get to work with the actual owners of the high risk payment processing company, you get personal attention from professionals who are often ex-merchants or ex-bankers.
Who qualifies for high risk merchant services?
High risk merchant accounts are typically limited to businesses that operate in industries considered ‘high risk’. This usually means cab companies, adult entertainment and online dating services. However, even traditional merchants like bookstores and specialty restaurants can sometimes qualify if they meet strict requirements.
Credit card processing for high risk merchants is nearly the same as it would be for any other type of business: You’ll just need to pass a credit review and fill out the appropriate paperwork. Some high risk merchants will be required to post a large security deposit before they can start processing–most likely, these are businesses dealing in large volumes of cash.
One thing you should know about high risk merchant services is that they do not work the same way a traditional merchant account does. In fact, high risk processing is a very different type of service–most banks won’t even provide it to you. If you have been turned down for a traditional merchant account or if your business has bad credit, then you may require high risk processing.
How do I get approved for high risk merchant services?
High risk merchant services are approved very quickly for qualified applicants. The application process is fast, easy and there is no minimum volume requirements or monthly fees like you find with traditional merchant accounts. To get started, all you will need to provide is your business name (including DBA’s), address, state tax ID and a valid email address.
Once approved, you will need to accept your contract and select your processing equipment (EMV Chip Terminal or Credit Card Reader/Swiper). You should also take the time to read through our guides and learn how to increase your business’ profitability: – How To Increase Your High Risk Business’ Profitability With A Credit Card Machine.