High Risk Merchant Account Provider
Take advantage of our High Risk Merchant placement program along with a suite of services that can assist in building successful business with a dependable payment platform environment. MerchantProcessors and its banks have established a network of acquiring banking relationships that can satisfy the high risk businesses across the globe.
We process merchants from high risk related industries:
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We also offer relationships with Payment Gateways, Chargeback Representment Services, and Risk Management Client Relationship Management Tools.
Fill out the form above or give us a call today to find out how we can help your high-risk merchant account an affordable and reliable reality!
Cheapest does not mean best, at all!
If you have used a few seemingly cheaper solutions over the years, only to find that in the end they cost me more. Hidden fees, poor service, frozen accounts, no capability to expand my payment options, poor fraud minimization help and the list goes on.
You need to watch your costs for sure, but as the old saying goes if it is too good to be true, it probably is. Be wary of processors and sales agents that advertise rates and fees that are not all inclusive. All of our applications have all rates and fees clearly spelled out on forms. There are no hidden fees or surprises with our application process.
Different processors, can be better suited to different business types
Some processors only focus on specific business types such as adult, while others are generalists. Some are upfront and straightforward while others are not. Some have best in class solutions while others have standard services. It will be helpful to ask the sales person you’re dealing with about their current customer portfolio to get an idea of the types of merchants they are currently working with.
Getting Declined, Closed or Shutoff
If your business is selling goods and services online you may need a payment gateway, virtual terminal, risk and fraud management and a eCheck solution. What services you need depend on your payment acceptance channels such as website, phone, fax, mail and in-store. Make sure your processor can do all of those things, and do them well. Companies like first data, square, paypal, elavon, intuit frequently will auto-approve your account when you sign up then reviewed weeks later and denied or cancelled abruptly with no notice. Banks in the USA like Wells Fargo and Bank of America are also known to auto-approve merchants upon sign up then review the accounts in detail a few weeks later. Typically you will begin processing then get an abrupt cancellation or denied an approval by these larger banks.
Probe your prospective providers to gain a level of trust
The high risk industry is fundamentally very volatile and complex. As a business owner, you won't have time to learn or keep up to date on everything going on in the payment processing industry. You will need to work with a company that won't take advantage of your limited understanding. One of the best indicators is to evaluate whether or not they are upfront with their prices and more important their capabilities. Make sure your processor specializes in high risk, and works with multiple banks not just in the country you are based but also around the world.
Visa and MasterCard have very vigilantly sought to crack down on high risk businesses for the last few years. You need to know that your processor is ahead of the game, and always keeps their head above water. Too many processors over the years have pushed the boundaries too far, and had their bank solutions switched off, fined and or heavily fined.
Ask your processor direct questions about their direct experience with this. If they are honest, they will have no doubt had this happen to them, but will be open about the fact and tell you what they are doing to prevent this with their current solutions. Ask them to also thoroughly explain all fees, rates, and conditions. Work out what an average transaction is going to cost you after ALL fees are added.
What are the rates and fees?
Depending on the location you are based, VISA and Mastercard typically take out close to 1% as dues and assessments for transactions. The banks also take out interchange costs at a rate that is determined by the risk level. The base transaction cost then is influenced by a few factors which include:
- Type of card used (mc or visa debit the cheapest cc , or rewards credit card
- Type of cc transaction
- How the cc transaction was initiated (card present vs card not present / Moto)
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Where the cc transaction takes place (is it international customer / offshore foreign/cross border?)
When a processor sets your rates they need to consider where the acquiring bank or banks will be, where your customers are, and the likelihood for chargebacks and any type of liability. Certain types of accounts such as ePharmacies are very high risk and only a small number of potential acquiring banks will take them. The ticket values may be high and chargebacks are likely. Hence a processor can justifiably charge a margin for the risk and additional services such as fraud filtering, gateway provision and account administration etcetera. Just make sure however that our competitors are not overcharging your for the risk and the services competitors provide you. We will explain each of our fees. We can beat a lower quote from a competitor on individual line items and gain there justification on each. We can not only negotiate on rates, but also on fees. We have managed to get some fees halved or even waived altogether in the past!
What is the difference between and Onshore and Offshore Account?
Onshore or domestic / usa based merchant processing accounts are usually referred to as those that are based within the country your are located. For example if you are based in the states and your account is facilitated by a United States based processor/bank, you are bound by the banking rules and laws for underwriting new accounts and determining risk in the USA. One of the most difficult rules for an onshore merchant to follow is the 2% chargeback rule. In the simplest of terms, if a merchant's account has more than 2% chargebacks in any month then it is subject to closure and all funds are to be held for 180 days or more. Also the major card bankcard Visa and MasterCard have different tolerances to different chargebacks and product types in different locations around the world.Offshore processors or gateways are usually internatioanlly/foreign firms that specialize in providing credit card processing around the world or in specific regions. These companies are not bound by the same statutes of the United States. The main advantage for a USA based company to process their transactions offshore is that the chargeback threshold may be higher, up to 5% in some jurisdictions. This is one of many advantages of processing offshore. Overall, there is a general sense that International banking institutions loosen up their constraints to the more liberal international rules of commerce, rules which should allow you to operate your business legally and securely within the parameters of the credit card companies' terms of service.
Do you need both?
Many merchants operate on the fringe of what credit card companies consider appropriate, and as the political climate is ever changing, so are the constraints under which legislation may place you on either side of that line. As a high risk merchant processing through a United States based processor, your threshold for chargebacks and other no-no's in the processing world will be much lower, you'll be held to a higher standard than other merchants, and kept on a shorter leash. By having an offshore merchant account to backup your onshore account, you can ensure there will not be a lapse in business, as your processing will not falter if your onshore processor shuts you down unexpectedly. Additionally, there will be instances that it will be beneficial to process through your offshore account vs. your onshore account, whether that be due to load balancing requirements, processing caps, higher tickets with chargeback issues, or a multitude of other reasons.