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High Risk Accounts
Have you been turned down for a merchant account because your business is considered to be high risk? If so, then we can help. Unfortunately, high risk merchant accounts are necessary for certain businesses which are unable to acquire a traditional merchant account. We have relationships with several high risk merchant account providers that cater to businesses just like yours. Being brokers, we can leverage our relationships to get your business set up with a merchant account at the best possible value to you.
What is a "High Risk" Business?
Some businesses are considered to be “high risk” by most credit card processors when compared to typical retail establishments. Reasons for a “high risk” classification include, but are not limited to a business with a high number of charge backs or returns, a large monthly volume/ticket size, frequent occurrences of fraud, a high insolvency rate, a business that guarantees lifetime products or services, and possible legal problems for products or services that have been found to occur frequently within a certain industry. Because of this, acquiring banks place themselves at a greater risk of financial loss when accepting these businesses for a merchant account.
Examples of High Risk Merchants
- Check Cashing Companies
- Gambling Establishments
- Collection Agencies
- MATCH List / Terminated Merchant Accounts (TMS)
- Credit Repair
- Collection Agencies
- Escort Services
- Herbal Products
- Pay Day Loans
- Adult Oriented Materials (swiped or keyed) and Adult Entertainment
- Bankruptcy and Collection Attorneys
- Hair Loss products
- Infomercial
- Online Dating
- Inbound & Outbound Telemarketing
- Horoscope/Fortune telling
- Lotteries/Gaming/Gambling establishments
- Magazine subscriptions
- Sports Forecasting
- Multi-level Marketing businesses
- Time Share Investments
- Travel Reservations
- Travel Tours
- Online Pharmaceutical
What are reserve accounts?
As a high risk business, you may be required to pay higher rates and setup fees than a traditional merchant account in order to compensate for the risk of processing money for your business. In some cases, a reserve will be required on the account. A reserve is a percentage of the monthly or daily processing volume and is created by withholding a percentage of each transaction for an agreed upon duration or amount. The reserve belongs to the merchant and is kept in an escrow account by the acquirer to protect against unexpected or excessive charge backs.
What if I need an account for my international business?
Not a problem! Broker Merchant Services has valuable solutions for your company whether your business is completely domestic or runs internationally.