What Is A High Risk ACH Merchant Account? How To Get One For Your Business
A high risk ACH merchant account is a type of business merchant account that is suitable for such businesses that are listed under the high-risk business category. In such cases, it becomes difficult to get a merchant account or credit card processing solution because most of the financial institutions and banks reject these applications as they see a high-risk business. With the help of a high risk ACH merchant account, a business can quickly start accepting payment online for their website.
What Are The Factors That Classifies A High-Risk ACH Merchant?
There are some primary factors that generally make a business to be considered under a high-risk business category. They are as follows:
- Bad credit score.
- Incomplete website.
- Copied content on the website.
- Meager traffic on the website.
- High ticket size and item.
- Cross border transaction.
- Negative reviews about the merchant.
- High chargeback to sales ratio such as recurring billing.
- Restricted Industry As Per Card Schemes.
All acquiring banks do not provide high risk ACH merchant account solutions because of the risk associated with a business. They believe in working with a merchant who has low-risk businesses. Many business owners come under low-risk business, but still, they are not getting approved by card processing companies.
Many merchants do not want their business to be considered as a high risk ACH merchant account, but due to several reasons, their business is classified into this category. Some of the reasons are industry type, large transaction size, future dating services, spiked monthly volume, past processing history of a business, etc.
- Casinos, gambling, gaming.
- Travel, ticketing agents, accommodations.
- Telemarketing, VoIP, calling cards.
- Pharmaceuticals, online drug providers.
- Subscription services.
- Dating services, adult entertainment.
- Debt reduction/credit repair counselling.
- Limousine and Taxi Services
- Tobacco Merchant Processing
- Skill Gaming
- Tarot Card And Fortune Tellers
How Does A High-Risk ACH Merchant Account Works?
Firstly understand what an ACH is? It is known as an Automated Clearing House. ACH payment is a form of electronic payment. In ACH the funds are transferred from one bank account to another bank account, i.e., from payers to payee’s account. Electronic payment always provides benefits to both customers and merchants. ACH payment processing is not so expensive, easily automated and can be kept in record. ACH can be used for recurring payments.
For ACH processing, the payer must know the details of the payee bank account. The details should be the name of bank, account type, routing number, and account number. The information can be obtained via phone call or mail. After this step, the payer will enter the details in the virtual terminal in the processing system. The ACH will save all the transactions in batches. These batches are processed every end of the day. The funds will be reflected in the bank account within 24-48 hours.
Many people in business do not get approval for a high-risk merchant account. Most merchant services accept debit and credit card processing. High risk ACH merchant service accepts check processing as well. A high risk ACH merchant account is for those merchants whose business transaction is processed in ACH. Most payment gateway do not offer their processing services to high-risk merchants.
We are delighted to announce that our team Quadrapay is willing to offer all these services to high-risk business merchants as well. Don’t hesitate to use our services. We offer these services at a low price. If you think you are a high-risk merchant, don’t hesitate to mail us your query. Once we get your merchant application form, we will contact you on your provided email or registered mobile number. Our team will be delighted to work with you.
Requirements For High Risk ACH Merchant Account:
In order to set up the merchant account, some KYC documents are required for verification. Some basic KYC documents are as follows:
- Business bank statements.
- Business cash and plan flow.
- Utility bill or address verification for business.
- Driving license or passport for prominent directors and shareholders.
- Company Registration Certificate.
- Domain proof details.
If you need more information on how to get a High Risk ACH Merchant Account for your business, mail us at [email protected].