Companies and businesses need a payment gateway to help their customers pay for the commodity or the service you provide easily. However, this is easier said than done. You could find merchant accounts easily for various companies and businesses. But the companies and businesses that fall under the category of high-risk industry may not enjoy the same and will need to apply for high-risk merchant accounts.
Here are some commonly asked questions about a high-risk merchant account and their answers:
How does my merchant account become “High Risk?”
When you apply for a merchant account, you may find that your business may fall under high risk. The term high risk here is defined by your website’s or business’ conduct and the way you conduct credit card transactions. If you do not have a presence in any jurisdiction and these processes are done through an offshore account, then you would most definitely have to go with a high-risk merchant account for your business.
Who needs a high-risk merchant account?
When it comes to applying for a merchant account that is considered high-risk here is the criteria that decide whether a business’ account will fall under the same or not:
Furthermore, these points also are considered when the banks or providers consider you to be high risk or not:
Adult websites, pharmaceutical companies and online gambling businesses are some of the most common examples.
Is it hard to get these accounts?
Yes, it is. It is not easy to find merchant accounts with high-risk. The banks and online providers think twice before they offer you an account. What’s more is that the higher the risk your business has, the higher are the costs for you. With larger fees and various different formalities, it becomes quite hard for you to find an apt business or merchant account.
Do I need money?
Yes, you do. You will require quite a lot of it before you opt for a merchant account that is considered high-risk. The point is that banks and various other online providers will levy many charges, fees and various things that make it hard for you to keep up with if you do not have money with you.
How long does it take for you to receive the money?
When a visitor chooses to pay, the merchant account providers will help them complete the task. Once that is done, the provider or the bank will settle their accounts with the credit card company regarding the payments made against your merchant account. And once the merchant account has the money, it will transfer it to you.
However, it must be remembered that every bank and online provider for your merchant accounts has a different time period for processing the payments.
Can I find a high-risk merchant account?
Yes, you can. There are some banks and many only providers that offer you this service.