High risk merchant services is a term used to describe an industry that is thought to be at high risk for chargebacks. That means when accepting credit cards online or offline the processor will most likely decline the transactions resulting in fines and penalties due to these higher risks. It can also mean that merchants are classified under less than desirable terms allowing processors to charge merchants with high fees and less than optimal rates. Either way, when a merchant is categorized as high risk it's usually for good reason.
What factors influence a merchant to be categorized under high risk merchants?
While it can be said that any one business is at high risk for chargebacks, there are many factors that influence this category. Some of the most common reasons are:
- Very low average transaction amount
- Too much personal information being obtained from customers ie; social security number, address etc. (this should only be required if selling a product or service that's tax related)
- Using a non-SSL secure connection to receive credit card information from customers
- Shipping items overseas or internationally which can result in high return rates and/or an increase of fraud cases.
- Online businesses accepting payments for adult products & services, pharmaceuticals, supplements, pharmaceutical or adult websites.
- Not having SSL certification on checkout page (look for the padlock symbol in the address bar)
These are just a few of many factors that can cause your business to be categorized as high risk merchant services, but it's definitely safe to say that any one of these factors alone could make you ineligible for merchant services.
What are some benefits of high risk merchant services?
While there are certainly reasons no business would want to be categorized as high risk, there are some cases where being labeled as such may have its advantages. Since not all processors will accept these high-risk merchants, the pricing is usually much better than that of traditional businesses. Another benefit of high risk merchant services is that in some cases, the terms and conditions are much more flexible.
What if I am categorized as a high risk merchant?
If you find that your business does fall into any of these categories then it's safe to say you will have a very difficult time finding a processor to work with your business. With that being said, there are still a few options you can explore such as:
- Finding a digital wallet or prepaid card company like PayPal (although not the best option as they also charge high fees)
- If your business is eligible to apply for merchant accounts without having an SSL certificate, check out companies like Site Merchant Accounts.
- If your business is already selling products or services with recurring billing, it may be possible to alter the terms within your agreement. This can result in you being categorized as low risk and thus having access to merchant services without all of the hassles that go along with high risk.
- If the above suggestions aren't applicable to your business then it may just be time to consider a different type of business or product/service you can sell.
The benefits of high risk merchant services aren't always easy to find, but if you're able to take advantage of them they can definitely help your bottom line.
Legal age restrictions, Controversial Content, Reputation concerns!
Then it’s quite challenging to find an adequate credit card processing solution for your adult entertainment business.You can make your business big by entering into the adult industry in this modern-day world.
For running an adult website, you always have to be stable and have an experienced hand for guiding you so that you can avoid big mistakes.
An adult merchant account solution is a must if you have an online adult business.
A merchant account allows you to process the cash you have made by accepting customer’s credit cards electronically.A merchant account of your business lets you accept payment through your website, with a virtual terminal or via a secured socket layer.
A merchant account accepts all kinds of credit cards including Visa, MasterCard, and American express.Choose your high risk merchant account services provider that suits your requirements.
Perhaps one of the biggest difficulties of being a merchant in the adult industry is trying to accept customer’s payment online.
It’s not that your customers don’t want to pay you; it’s that the number of financial institutions willing to provide you with the capabilities to accept credit cards and most of those has extremely high rates which means your profit is diminished greatly.Merchant Account- A Quick DefinitionAdult merchant account solutions are required in order for someone to accept credit cards, be it online or offline business.
It is a special bank account designed solely for adult businesses' purposes.So what is the problem with high-risk merchant accounts for adult websites?The adult industry carries with it a track record of high risk in terms of chargebacks, too many chargebacks and it’s not at all good for both the merchant and the accounts provider.
As a result, most providers are not prepared to take on the extra risk that high-risk merchant account entails.
Those providers that do not accept adult merchants compensate for the risk by charging a higher rate.As a merchant in the adult industry, your number one priority is to find a High Risk Merchant Account Services provider with the lowest possible rate.
However, it’s also important to find the best solution that is stable and reliable- if your provider is not adequately prepared for adult merchant solutions then there are chances of problems, the last thing you want to have your money frozen or lost!Where can you set up an adult merchant account?Contact with your local bank if they offer merchant services for your high risk business or firm.
High-Risk Merchant Service Providers in the UK are those that operate in sectors that payment processors consider to be riskier.
These might be industries with age limitations, legal ambiguity, or other problems.
Consider the following suggestions to guarantee you are able to acquire the right merchant account.Look into the Top High-Risk Merchant Services Providers:When it comes to service providers, one of the most crucial suggestions for high-risk merchants is to conduct your homework.
While charging additional costs in this circumstance is customary, it is at the provider's discretion and is generally unneeded.Select a Payment Processor Who Provides All of Your Needs:When selecting a payment processor, make sure they can fulfill all of your payment processing demands, so you don't have to forego services you believe you need or deal with several High-Risk Merchant Service Providers in UK.Credit card terminals, POS systems, mobile payment solutions, payment gateways, and integrations are some of the most significant payment processing services that should be provided.
If they are appropriately priced, you can go ahead.
Be Honest with Your Merchant Service Provider:When you've abridged all your alternatives and decided on a high-risk merchant account, do not hold back any information.
