High Risk Payment Processing

When your business falls into a certain industry or has a high charge-back ratio, it can be deemed as a high-risk business. And if you run a high-risk business- it is essential that you choose the right payment processor. Many high-risk businesses don’t even realize they have fallen into this subsection, until they begin applying for a merchant account to process their weekly transactions and revenue.

High risk business characteristics include ecommerce or online merchant accounts that have no retail presence, MOTO merchant accounts, average ticket prices higher than $1-2K or products and services fulfilled in more than 72 hours of transaction. These characteristics create a reputation of increased or high risk of chargebacks. With this reputation, traditional payment processing and merchant accounts struggle to adhere to high risk needs and often deny the business as a whole. It can be overwhelming trying to navigate the high-risk processing and merchant account industry.

The right high risk merchant account provides high risk businesses with the top payment processing services and technologies. Your provider should have active solutions to high-risk payment processing issues. If your business has a large number of chargebacks and refunds every month, you may be subject to a rolling reserve on your account, which can help cover transaction issues and fraud. Your high-risk payment processing solution ultimately depends on your brand, your industry and the design of your business. However, when choosing a payment processor, it’s essential that you pay close attention to their policies. Many companies that state they specialize in this area of payment processing will offer incentives like instant merchant account approval rates, just to overcharge you with exorbitant fees and processing rates later down the road.

But why does risk level matter?

High risk payment processing and merchant account services are more expensive than low or non-high risk business accounts. Unfortunately, higher processing costs are a reality for high-risk clients. This is why it is so important to find the right payment processor. With many payment processing providers, you’ll have to consider the fact that high-risk accounts have to deal with contracts usually include an early termination fee that kicks in if you close your account before your contract term is up. You may even have a liquidated damages clause in your contract that also raises the price of breaking it.

At 247 Payments we offer integrated payment processing solutions for all industries with no contracts, and no surprise fees. Our services and solutions are specifically designed for each business we work with. We pride ourselves in the succession of our high-risk business. We offer chargeback mitigation to help you fight chargebacks, with rapid dispute resolutions that help speed up the mitigation process. We have the right solution for you, whatever your payment processing needs may be, risk free.






Leave a Reply

Your email address will not be published. Required fields are marked *