The Merchant Processing Guru Tip#17: High Risk Processing – Continued:
Other reasons for a credit card processing account to be deemed a high risk is bad history in a particular industry. If a particular industry is placed on the “undesirable” or “Unacceptable industry list” then anyone seeking to open a merchant account, who is in one of those industries, is automatically declined by a traditional processor and will have to go to a High Risk Processor to open an account. A High Risk account will typically be at a higher cost as the processor assuming that risk will need to mitigate that risk with higher profits. Some examples of High Risk Industries are: Online Porn and related businesses, Gambling, Online supplement sales & Diet pills, Collection companies & Credit repair, Investment Firms and more. If you have high ticket items that are delivered or shipped after running the customer’s credit card you may also find that you are too high a risk for some processors. I find that the majority of high risk accounts today are in fact ecommerce accounts as so much business is done online today as opposed to several years ago and that is where most of the fraud and purchases with stolen credit cards occur. If you have a rocky financial history you could possibly find this to be problematic as well. If you have questions about this just get in touch with me.
In some cases a domestic High Risk processor will accept one of these accounts but in others we will have to go to an Off Shore High Risk processor which is typically a European bank to get a merchant account. I look at every case individually as no 2 accounts in this arena are the same. The cost for setting up an off shore account are high and the cost for processing through an off shore processor can be high also but if you cannot get approved by a traditional processor or even a domestic high risk processor the benefits of taking credit cards may out way the additional costs and you don’t really have a choice.
I have access to every form of High Risk processing that is available and can place almost any account. If you happen to find yourself in this position then just get in touch with me and we can find out what your options are.