Introduction

There are no limits to online businesses that are running nowadays. Approximately 90% are attacked by some of the other frauds daily. With technological advancement, the need for prevention against such threats had emerged severely.

When you run a business, you may see a higher amount of chargeback or refunds, which may suggest that your company is high-risk. High-risk merchant account is exclusively for firms that banks may deem high-risk.

High-Risk Merchants Accounts

Merchant accounts make it easier for businesses to accept payments from customers. This can be regarded as digital account that is linked to payment gateways.

Payment gateways send transaction information to processors. These processors (banks) cross-examine the details of the payee with his concerned bank.

After authentication of payment details, the amount is debited and sent to the merchant account. This merchant account does not instantly settle the payment. But when called upon by merchants there is always a billing cycle for making the settlement.

This merchant account is essential, as a normal business account does not support payment from customers worldwide. However, after settlement with the merchant account, the amount is transferred to the merchant’s linked account.

Before offering a merchant account, what do Acquirers look for?

Every Acquirer has a long set of rules and regulations in order to provide Payment Services to businesses given below. And this might differ from country to country. The business is scrutinized in every facet to ensure merchant account.

Businesses that are considered as High-Risk

  1. Online Gambling Business
  2. Online Casino Business
  3. Adult Toy Business
  4. E-commerce Business
  5. Forex Trading Business
  6. IPTV Business
  7. Travel Business
  8. Online Tobacco Business
  9. Porn Business, etc

Before allotting the organization with a merchant account the Acquirers may demand a long list of documents willing to know

Nature & Type of Business: Gambling, Forex Trading, Casinos, Adult Entertainment, and other high-risk businesses are just a few examples.

Total monthly transaction volume: It is regarded as a high-risk firm if the total volume of transactions exceeds $20,000.

Transaction Value on Average: High-risk transactions are those that exceed $500.

Credit History: Credit history should be sufficient to obtain a merchant account with Acquirers.

Stability in finances: Stability in finances entails a consistent amount of transactions. A higher level of fluctuation suggests a risk. The account is more prone to chargeback and refunds possess more fluctuation.

To keep your industry safe, the chargeback ratio should always be less than 0.9 percent of total transactions.

After cross-examining the above-stated documents the merchants with satisfactory consideration are allotted Merchant Accounts. In some cases, the application can get rejected but this may not be a problem if you find an appropriate High-Risk Payment Gateway Service Provider like Highriskgateways.

Forex Trading Merchant Account as High Risk

Forex trading is also regarded as a High-Risk business as it involves the trading of currencies from one country to another.

There is a greater probability of converting black money to white and other such frauds as many trading platforms are not even registered with any country.

However, all Forex Trading merchant account includes a full set of account management and security features. Identify legitimate transactions, reject fraudulent transactions, and set aside suspicious transactions for manual review.

But it is not so that having a High-Risk Merchant account only has negative aspects. There are several ways in which such account benefits merchants

With a High-Risk Merchant Account, a single chargeback does not result in the account being closed. However, this badly impacts low-risk merchants

Merchants can sell products or services which are not allowed as low-risk merchants, etc

Conclusion

Payment services are required for any high-risk merchant operating a business. Chargeback or other forms of fraud are always a possibility in their operation.

Highrisk Gateways recognizes the seriousness of the risk associated with High-Risk Business. We built ourselves specifically for High-Risk Merchants who were having trouble with merchant accounts and payment processing.

We’ve steered them in the right direction, and their business has benefited as a result. Merchants looking for a High-Risk Merchant Account can Contact Us with the “Get in touch with us” option given below on our home page.

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