A high risk merchant

Top news in February

Popular news

Thank you for your query. We will contact you soon.

Connection of the processing of Internet payments

Key benefits of connecting a company website to processing:

  • An effective way to optimize payment processes;
  • It is possible to choose both a local and an international provider of processing services;
  • A wide choice of payment instruments;
  • Availability of 3 types of relevant licenses;
  • A relatively fast process for preparing documents.
Contact us as you find convenient
Detailed information
Send a request
get a detailed offer
Do you want to add a comment?

* - *required fields

A trading account is approved by a bank/financial institution, and includes payment by credit or debit cards. But, remember, the type of business affects the level of risk associated with a seller’s account, who uses this business. More and more questions arise regarding high-risk trading accounts. The most common causes of the situation and the problems associated with opening a trading account are discussed in this article.

High-risk merchants stop working with buyers and processors, who offer high-risk services, that take a responsibility for high risk (high-risk payment processors). Most likely we all understand, that a high-risk service is much more expensive.

What is a high risk trading account?

Acquirers calculate a risk in different ways. A risk is calculated in terms of fraud and chargebacks. More chargebacks - the higher risks.

There are times when sellers purposefully look for processors with a high degree of risk, since in this case following advantages open up before them:

  • the increase in sales;
  • multi currency sales;
  • regular payments.
For what reasons you can determine a high risk:
  • Loss of account due to a decrease in volumes of estimated sales;
  • A longer period of liability of goods/services. If you offer annual membership, customers have 18 months to pay back (6 months after the end of the operation);
  • High return industries. The bank implies, that you will have to spend a lot of resources on managing your account, which ultimately leads to the fact, that it simply disconnects you.
  • The account has a “reputation” risk.
  • You are on the TMF or MATCH list (MATCH is an electronic bulletin board, used to track people and businesses. TMF list is a blacklist of merchants).

IQ Decision team has an extensive experience in providing legal support services for businesses. Among them, also, services for opening a merchant account, which helps to increase the popularity of the company.

Read also:
Types of business, where obtaining a high-risk merchant account is required:
  • the annual membership;
  • products for adults;
  • security bonds;
  • a selling electronics online;
  • a debt service;
  • firearms dealers;
  • a mail order or a phone order;
  • the multilevel marketing;
  • a software download;
  • a telemarketing;
  • telecommunications (VOIP or Calling Cards);
  • an advertising in Timeshare;
  • tourist services.

Our lawyers will assist in finding a bank with the most suitable merchant account for your business.

Types of high-risk merchant

Although these businesses can be profitable, they have a chance to run into payment problems due to the lack of a high risk merchant. Companies with one or more attributes make a high risk business:

  • Credit card issuers in TMF or MATCH that are blacklisted;
  • Risks with individual loans;
  • Commercial sales, that are banned, but not by all banks;
  • A sale of products, that will be activated in the future, such as hotel reservations, event tickets, etc.;
  • A sale of expensive items, such as furniture or custom auto parts, etc.;
  • Industries with historically high chargebacks;
  • A membership with automatic recurring payments.
Opening a high-risk merchant account

For high-risk business, it may be perplexing to find a merchant account provider, since most financial service providers adhere to strict guidelines for approving merchant account services. Again, this is due to any number or combination of factors discussed above.

We offer consultations on opening a merchant account in a foreign bank, the assistance in choosing the best bank and processing company for your type of activity, as well as services for supporting an application for opening a merchant account.

  • The information outlined in the article is actual at the time of its publication.

  • Please refer to our specialists for checking possible solutions for your business.

  • Still have any questions?

    Fill out the form or contact us as you find convenient: skype, telegram, etc. Our experts will help you resolve the issue.

Are you interested in qualified advice from our specialists on this matter?

Your name user
Your comment comment

Do you want to add an alternative form of communication?

tel add icon telegram add icon skype add icon whatsapp add icon viber add icon
people with bank