Advanced Merchant Services Providing High Risk Accounts

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An advanced merchant services provider can create a merchant account that is considered high-risk for online merchants. This can be done even though they have been confirmed to be "high-risk" by Visa and MasterCard. This is all in relation to the status of their businesses including those having a high credit rating or a chargeback percentage that is high which leads to an increased danger of scams and more chargebacks.

As a normal course of action, it's really hard for an organization not based in the US that is considered high risk to get approved for a merchant account. The high-risk accounts available by different providers permit merchants internationally to independently manage all credit card transactions and actually have the profits transferred to a savings account offshore. The costs are higher for high risk accounts offshore for credit card processing.

If you are tagged as high-risk, advanced merchant services providers are most likely to decline you. The goal is to find a merchant services processor that will get your business authorized and has you operating as fast as possible. They will have you accepting credit cards swiftly and effectively, with either a merchant provider dealing with high risk accounts or a merchant account provider that is global.

The types of merchant accounts that are considered high risk consist of travel industries, pharmaceuticals, infomercials, telemarketing, online dating, video gaming, reproduction, and so on. Now, some of these are considered higher risk than others.

Merchant accounts that are high-risk are offered through global banks. A business that is considered high-risk will have to do the following in order to secure a direct account:

  1. Having the business incorporated within the jurisdiction of the bank (this requirement is based upon the operating policies of the actual credit cards).
  2. Having the processing statements for the prior six months.
  3. Having a chargeback rate within the last 6 months that is less than 1%.
  4. Able to pay for the required fees to set things up.
  5. Supply principal's passport, company incorporation files - some jurisdictions need a regional candidate director's passport and an energy bill of the candidate director. The reason this is required is to stay away from border crossing concerns.

These accounts can likewise be categorized as high risk offshore accounts, global merchant accounts, and merchant accounts considered to be high volume.

Now, if you do not have any processing history, another option exists where if you don't want to go through the expensive process of incorporation in the bank's jurisdiction, you can always get a third-party merchant account. A third-party merchant account's underwriting is less rigid and is established much faster than a direct account.

What Rates Can Be Expected as a High-Risk Merchant Service Account?

Well, let's be clear and not sugar coat it, high risk merchants have to make do with less than desirable terms and higher rates. That's just the way it is and there's no way around it. When your business is positioned in this category, you really don't have any room to try and negotiate.

However, don't bypass going through the details of your contract. The number of ethical high risk processors that exist today pale in comparison to the unethical ones that can’t wait to take advantage of you. And, because your business is positioned in this risky category, your judgement might not be as clear as you would like it. That's how most processors take advantage of you so make certain that you do read the contract and go over the fine details.