By Julie Franke, CPP
Business owners are often surprised to hear that a High Risk Merchant account is required for certain types of businesses. Your processor will determine whether you fall into one of their high-risk categories when you apply for a merchant account. Either you are high-risk, or you are not – there is no middle ground. Working with a Certified Payments Professional will help ensure that your business is classified correctly and that you are placed with the best processor. At Electronic Merchant Services we are staffed with Certified Payments Professionals that can help navigate through the confusing application process.
There are certain characteristics that make a business be classified that way. Here are some examples:
- Average high monthly volumes or ticket size
- Offering recurring payments (subscriptions)
- Industries that have a high rate of chargebacks
- Industries prohibited by traditional processors
- Account has a reputational risk such as adult industry or online gun sales
- Poor personal financials that or financials that do not support the risk of opening the size of account you are looking for
Merchants looking for a High Risk account will need to work with a processor that specializes in these types of accounts. More documentation is required and the underwriting time is a bit longer than applying for a standard account. Having the right processor who has experience in the field and the knowledge to move through the process quickly and efficiently should be a priority when selecting a company. At Electronic Merchant Services we have that experience that you need to be able get approved and start moving forward in your business.
This is not an exhaustive list but here are some sample industry that are typically classified as high risk:
- Casinos, Gambling, or Gaming
- Telemarketing, Calling Cards, VoIP
- Pharmaceuticals, Online Drug Providers
- Adult Entertainment, Dating Services
- Travel, Accommodations, Ticketing Agents
- Attorneys, Bail Bonding Services
- Subscription Services (Magazines, Collectibles, etc.)
For more information contact us at info@emspayments.com or 208-273-5575