What are High Risk Businesses?
You are most likely wondering what a high risk business is. if you arrived on this page. This is a term that you can find very often in the financial world and it does bring in front quite a lot of challenge even for the industry professionals. We are here to eliminate the shroud and offer you a great solution!
One thing you need to know is that high risk businesses are operating within a high risk industry most of the time. The industry doesn’t have lots of customers or it has plenty of competition and its sales and dwindling to say the least. You will also see that most of the high risk businesses have financial troubles, with various problems like company viability and the inability to get financing, merchant accounts and so on.
Yes, a high risk business will have a hard time getting a merchant account, although there are high risk merchant accounts that can be acquired at times. It’s important to note that such a business can have a hard time getting online payments just because acquiring a merchant account is quite demanding. The high risk factors included here are a large number of chargebacks, refunds and so on, credit card fraud as well as companies that have a very high number of non-fatal or even fatal accidents to begin with.
Moreover, there are businesses that don’t comply with the regulations and requirements requested by the local law. This is very important and it does bring in quite a lot of trouble to begin with.
Since a business is seen as a high risk one, it does have to deal with plenty of consequences. The first one would obviously be dealing with a very high loan rate. This is very challenging and many times it can be quite problematic to begin with.
Of course, working with a high risk business doesn’t bode well even for some major companies as well, which is very challenging for sure. It might be very problematic at first, so you should just try and avoid that to begin with. Yes, it will be problematic to deal with this type of business because not that many want to focus on working with companies that are in debt. This doesn’t really seem to bring in front a lot of trust and that’s why most high risk businesses tend to be avoided. They also tend to have a bad reputation in the industry and that can hamper their potential partners to begin with.
Plus, you won’t be able to get a merchant account which is even worse to say the least. All of these combined do show that high risk businesses will have quite a challenge when it comes to finding good partners and working with them in the long run. It will not be easy for sure, but that’s the reason why you have to eliminate debt and focus on optimizing everything. Yes it will be challenging but it can be very rewarding too!.
Contact your Merchant Stronghold representative learn more about high risk merchant account services and how we can help you start processing quickly.
Email us anytime!
Email customer service 24/7
Call us anytime!
Reach customer care 24/7 at +1 (727) 330-3944
WHAT IS A HIGH RISK MERCHANT?
Businesses are classified as high risk merchants if their industry has a greater likelihood of fraud and chargebacks. Other reasons for a high risk classification include payment terms, processing volumes, ticket sizes, and targeted markets. The extensive fraud-fighting weapons & chargeback prevention services included with our processing, allows us to accept most high risk merchants.
Benefits of Having a High Risk Merchant Account
- Minor difficulties whenever chargebacks occur
- Elevated security standards
- Avenue to bigger market opportunities
Examples of High Risk Business :
- Tech Support.
- eCommerce.
- Anything adult-oriented.
- Tobacco.
- Gambling.
- Financial services.
- Legal services.
- Travel and hospitality.
- Health and wellness.
Wow! This can be one particular of the most beneficial blogs We have ever arrive across on this subject. Basically Fantastic. I’m also an
expert in this topic therefore I can understand your hard work.
This is an unbelievable article. Very in depth. Thank you so much for sharing. I think everyone should read this.
quite exciting go by way of, I could not agree completely, but you do make some genuinely legitimate factors.
Rates are according to the volume of sales and type of product you are selling. It is considered “High-Risk Business” and comes with a standard 10% Six Monthly Rolling Reserve. If you like the thought of
a business offers various types of packages, vacation rentals, and airfares. It is considered as high risk business because credit card processing is high trafficked. The transactions also occur via phone and
Hi,
Great information, it has given me ideas about High risk business & online credit card payment processing.
Many thanks to Merchant Stronghold for this information 🙂
I’m pretty pleased to discover this great site.
I want to to thank you for one’s time for this, particularly
fantastic read!! I definitely appreciated every
bit of it and i also have you book-marked to look at new information in your website.
Very good info. Lucky me I came across your site by chance (stumbleupon).
I’ve bookmarked it for later!