A Comprehensive Guide to Setting Up a High Risk Merchant Account
High risk merchant accounts are a type of credit card processing account that isn't available to everyone. If you're wondering how to get one, this comprehensive guide will walk you through everything from who can apply for high risk merchant accounts to the fees and benefits associated with them.
What is a High Risk Merchant Account?
A high-risk merchant account is a type of credit card processing account that can be used by businesses that have a higher risk of fraud. A high-risk merchant account is usually more expensive than regular merchant accounts, but they may also offer certain benefits (like fraud protection) when compared to standard processing solutions.
How Does a High Risk Merchant Account Work?
High risk merchant accounts are special types of credit card processing accounts that are designed for businesses that sell certain types of goods and services. High risk merchant accounts are more expensive than standard merchant accounts because they have higher fees associated with them, but they can be a good fit for some businesses.
Who Can Apply for a High Risk Merchant Account?
If you're running a business, it's important for you to know who can apply for a high risk merchant account. Before we get into that, however, let's talk about what makes a company "high risk" in the first place.
A high-risk merchant account is one that has been set up specifically for businesses that deal with certain types of products or services and tend to have more than average chargebacks (returns). High-risk businesses include those in industries such as:
Retail
Online gambling (casinos, poker rooms)
Dating sites/services
How Much Do High Risk Merchant Accounts Cost?
The cost of high risk merchant accounts can vary, but it's usually higher than standard merchant accounts. The fees for a high risk merchant account are usually around $1,000 to $2,000 per month. This depends on the type of business you run and how much money you make each month.
Can I Still Use My Credit Card Processing App with a High Risk Merchant Account?
Yes, you can use your existing credit card processing app with a high risk merchant account. You will just need to upgrade it or get a new one that supports high-risk businesses.
When you sign up for a high-risk merchant account and decide which provider you want to work with, make sure they support all of the features that your current service does (i.e., Stripe). If not, then there's no point in switching companies because their services won't be compatible with each other.
How Do I Get Approved for a High Risk Merchant Account?
A high risk merchant account is a type of credit card processing account that allows you to accept payments online.
You will need to provide your business information. This includes your company name, address and phone number. It is also important that you know what type of business you are in (for example: jewelry store).
You will need to provide the company you are working for information. This includes their contact person's name and email address so they can receive notifications about new orders or changes made on the account settings page by their employees at any time they want without having any problems whatsoever!
Why Do You Need to Apply for a High Risk Merchant Account?
High risk merchant accounts are for businesses that have a higher risk of chargebacks. These accounts allow you to accept credit cards, but they're more expensive than standard merchant accounts and often come with additional restrictions. If your business is not eligible for a standard account, then a high risk merchant account should be your first choice for accepting payments from customers who don't have credit cards.
Now you know how to get yourself a high risk merchant account.
Now that you know how to get yourself a high risk merchant account, here are some additional tips on how to make sure your business is ready for one:
Know the ins and outs of what makes a business qualify as high risk. You should be able to answer any questions about this topic easily.
Be prepared to provide documentation from the bank showing that you have received approval for the account. This should include copies of all correspondence between them and yourself (including emails).
Conclusion
Now that you know how to set up a high risk merchant account, what's next? The first thing is to make sure that your business is ready for this type of account. If it isn't, then make sure that you at least have some sort of payment processor in place so that your customers can pay with credit cards. Once everything is ready for prime time (and don't forget about those security measures!), apply for an account through one of our partners below:
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