What Makes a High Risk Merchant Account High Risk?
Account
This is dependent upon your own service provider even though providers have formulated guidelines to categorize specific company types. Let’s take a look at the fundamentals for a moment.
These Business Type S could be:
Computer Sales, Antique Sales, Bail Bondsmen, Pawn Shops, Medical Marijuana Sales, Escort Services, on the Web Adult Web Sites, Adult Bookstores, Adult Services and Products, Debt Collectors, Debt Repair, Debt Collection, Debt Consolidators, Credit Repair Services, Credit Counseling, Gambling, Lottery, Raffle Organizations, Traveling Agencies or Travel-related, Gift-certificate Clubs, Get Rich Quick Schemes, Online Pharmacies, Dating Services, Cellular Phone Services, Drug Paraphernalia, Pharmaceuticals, Third-party Processors, Fortune-tellers, Sports Odds Making, Electronics, Bankruptcy Attorneys, Charities, Time Share Sales and Extended Warranty Organizations.online gaming merchant account providers
Bank providers will probably soon be looking at several special things after reviewing the application. Some of those things could be:
Charge backs- Particular businesses types have a high ratio of charge backs necessarily.
Bank card fraud- a few companies are naturally going to be vulnerable to fraud.
Legality- This consistently poses a high danger of business that could possibly be considered’closely- related to being prohibited’ or suspicious.
Marketing- services and products or even a service that may promise quick results that the consumer may be easily disappointed with sets this category at a greater risk.
Target Market- Global markets could be viewed as higher risk for obvious causes.
Type of Merchant Account- Wireless or internet processing is always likely to be high risk vs. a merchant account where the card has been presented called Card Present Merchant Accounts.
Business Operation & variety of Merchant Account- Operation type will have an affect on the risk factor: telemarketing, multi-level marketing, third-party orders. Wireless or online processing is obviously going to be higher risk vs. a merchant accounts where the card is presented (Card Present Merchant Accounts)
It’s likely your business may come under a typical hazard where other banks can consider your business at greater danger. This is where a fantastic broker will be convenient. A merchant company that’s been doing business for quite some time and has numerous solid banking connections equals banks that accept large risk balances is essential! This will ensure the very best scenario for your business enterprise.