It isn’t easy to get merchant accounts for high risk businesses. Generally credit card merchant account acquirer avoid handling high risk merchant accounts. Only a few service providers can manage the high level of risk. www.quadrapay.com saves your time and energy by applying directly to these payment processors and increases the chances of getting an active merchant account for your online business. Quadrapay.com provides best-in-class high risk merchant account services at the most competitive fees. We aim to become the most trusted and reliable source of high risk merchant service and cater our clients with unrivalled quality and utmost dedication. The global industry is very diverse and it has different categories under the umbrella term of high risk businesses. Any business that exhibits the characteristics of high chargeback history, high-ticket sales irregularity, declination from large banking organisations, below average credit scores and highly regulated industries are considered as high risk business. Getting a merchant account for these industries is really difficult, but Quadrapay.com assures to provide unmatched services to these businesses. The analysis to classify a business as high risk or mid risk or low risk is completely different for different service providers, credit card companies and banks. It depends upon the underwriting guidelines of the risk department. A general overview of the industry related information can help you decide better. There are numerous categories in high risk business but let’s start with the major ones. Does your business fall under any of these categories?
Timeshare includes travel, vacation and rental related businesses. Globalisation has also given hike to travel and leisure & the business has increased many folds. As profitable the business is, it also comes with risk of instability. In this industry large most transaction are done via internet and also includes disputes, remorse and other factors which makes it even more unstable. The service providers for this industry should be chosen very wisely. Do you need Timeshare merchant account? If yes, then you can get approval for Credit debit and E-check processing through Quadrapay.com with ease. Timeshare companies from almost every nation can start processing with Offshore service providers.
Merchant Accounts for Collection firms
Collection agencies, debt collection departments and debt buyers from various industries face similar issues when it comes to establishing a merchant account. Owning a brick-and-mortar business easily gets you a merchant account but for a debt collection company most banks and credit card companies refrain from issuing any merchant account. Qudrapay.com has come up with comprehensive solutions for such companies. Collection companies face massive challenges in getting a domestic solution. Payment Service Providers located at offshore locations can offer good solutions.
Adult Payment Processing
Every segment of adult entertainment industry from dating, escorts, clubs and memberships to adult websites, needs a high risk merchant account. Giant payment aggregators don’t entertain this segment of industry. The unique needs of this business segment are best catered by Quadrapay.com. For a general bank to issue a merchant account for adult industry, it must fall under bank’s underwriting guidelines. If the business model, products and services are legal, we assure to provide you with the best payment processing services. North American and EU based merchants can use High Risk Gateways to sell online adult entertainment products and services. Different solutions are available for entertainment companies of all size.
Whether it is a low or bad credit business, Quadrapay.com is always ready to help you in the best possible way to get a merchant account for your business. The general overview that prevails with all banks and credit card companies is issuance of merchant accounts on basis of credit ratings. Regardless of the risk category, bad credit merchant account is less likely to get acceptance from banks. No Matter what you sell if the credit score of your business or of yours is poor then most of the processors will decline your proposal. They want to play safe and want to work with companies with strong financial standing. Few processors may charge a little bit more but can offer Credit, Debit and Echeck processing options. You should always be clear with these high risk merchant account processors regarding your credit score to save yourselves from the hassles and further delays.
Gaming Merchant Account
Quadrapay.com specializes in high risk and providing most reliable services to online gaming merchant account. Mostly gaming and gambling sites are considered illegal by federal laws. Most of these sites are based offshore, also business having high chargeback rates makes it more difficult to get a merchant account. Only some specific high risk merchant account provider can facilitate this industry. For casino merchant account and business related to digital gaming a reliable payment method is credit card processing. Gaming merchants that are legalized can easily accept credit cards online. Gaming business can experience massive growth by using a payment gateway. Some legalised online gambling merchants have created massive brands online. Offshore Payment Providers offer stable processing options to Gaming, Casino and legalised Gambling companies.
Timeshare and travel are almost similar, except travel being a broader perspective to look at everything that relates to commuting. These days the main method of payments is travel industry is online payments. Considering the risk present in this industry, different banks have different underwriting norms for providing merchant accounts. Merchants in the travel industry can get fast approvals. Some Travel agents need virtual terminal and depending on the business profile processors may offer the same. Traditionally this industry has seen higher chargeback ratio. By using Chargeback alerts and notification services the returns and refunds related issues can be easily reduced.
When it comes to selection of credit card processors, a business owner has many options to choose from. But, high risk merchant services are available with only a few ones; that too depend on the underwriting guidelines they follow. From credit card, debit card and ACH payments to online transfers, the various risk factors involved with certain industries make them even critical. These risk factors can be a result of chargebacks, returns or refunds, frauds, bad credit score and poor credit history, recurring billing, type of product and service, or company listing on TMF or MATCH list. Henceforth, the role of high risk merchant account processor comes into action which provides dedicated services with a wide range of options to select from as per the industry type.
There are so many payment processing companies across the world. Out of these massive number of financial institutions only few onboard High Risk Merchants or Merchants with bad credit. A merchant’s application can be declined because of multiple factors including the Credit Score of the business owner, Previous Merchant Account Shutdown or the type of product and industry.
The factors that we have discussed in previous segments are responsible for reduced number of interested banks in providing high risk merchant account. This is really a major hindrance for the merchants who want to get a high risk processing accounts and payment gateways. This issue can result in two negative effects for a high risk merchant. The less harmful one is not succeeding in getting a high risk merchant account. The more dreaded one is severe penalties, impositions and even shut down of an existing high risk merchant account by the bank because of the affecting factors. We can term the latter as even worse because it stops the business flow and ceases the funds in the account till further notice and inquiry outcome from the bank. So, If a merchant succeeds in getting a merchant account and a payment gateway, it doesn’t mean that the path is easy now. It turns into thorns from roses, when a merchant has to maintain a healthy working relationship with the bank following all the laws and regulations. Hence, not only setting up a high risk merchant account is difficult but also maintaining the same for long period is also an issue for the related merchants. Quadrapay.com comes up with stable and trustworthy services, offering solutions to all these problems.
Views of Top Notch Banks
Now a day, merchants have increased chances of availing a high risk merchant account with a top-notch bank. Most such accounts are personalized ones. On the basis of the account application and applicant’s profile history, after diligent and comprehensive financial profit analysis these banks may issue a merchant account. The interest rates, application fees, processing fees and other charges are determined by the study of merchant’s credit and financial history. The banks that acquire these high risk business accounts, undergo a rigorous process of evaluating the business model, investment sources, profit projections, expected turnovers and the target clientele before issuing a merchant account. If a merchant successfully maintains a high risk merchant account for longer period and the acquiring bank is also benefiting from the same, then these banks may extend their hand to merchant to provide multiple accounts with additional services, to facilitate the safety of transaction flows in case of any adverse situation.
Types of Merchant Accounts Card Present and Card Not Present(CNP)
CNP or Card Not Present Scenario is more risky in comparison to transaction with a card present scenario, as the card is not physically present with the Merchant. Generally, customers use various mediums to process orders like websites, email or online invoice. Some specific types of accounts including Real Estate, Adult, CBD, MMJ, MLM, Credit Repair, Airlines, Kratom, Charity, Tech Support, Call Center, Forex, Travel Agency, Ticketing Agency, Head Shop, Pawn shop, Pharmacy, Dating, Web design, Liqure, E Cigarettes, Online Gambling and Call Blocking, Subscription or any transactions that takes place online usually fall under physically not present scenario.
The possibility of fraud is much greater with this type of business scenario (Card Not Present – CNP) which results in classifying these types of accounts as “High Risk business accounts”. Naturally, these high risk merchant accounts present the risk of the dreaded chargebacks for the related banks in question. It has been proved by various researches that these High Risk processing transactions are more susceptible to fraudulent transactions.
A Card Present Scenario will typically be similar to a transaction taking place at a departmental store. A customer hand overs the card to the merchant for transaction in such scenario. The Card is swiped on the POS (Point of sales) machine. Merchant delivers the products after getting an approval message on the terminal along with confirmation receipt.
What are the further issues for such Merchants? As said wisely, you cannot achieve anything in life without taking risks. Most of the financial institutions take a specific level of risk as per there internal policies and underwriting guidelines. Hence, the merchants should try to apply with the right payment processor and not waste time in applying for a merchant account to processors randomly. In a situation like this, Quadrapay.com can help save merchants time by sending the application to the befitting payment service provider that is compatible with merchant’s specific industry type. If you are tired of getting your applications declined because of credit check then we will suggest you to try Quadrapay.com for once. We may be able to get you approval for credit card processing with no credit check.
Like most entrepreneurs, you must have started your business with a vision; the vision to grow in your particular field and to create jobs and opportunities for other people also. To achieve your vision you should implement all the best practices but, unfortunately everything comes to a standstill if you do not have a payment processor to support your vision. Not every business owner is lucky to have an active Credit/Debit Card Payment Processing Solution with all synchronized services. Some may be lucky but for others, the problem persists constantly.
For most of the industries, the problem started somewhere around 2013. This is the time when “Operation Chokepoint” was initiated by the US- Department of Justice. The purpose of this initiative was to investigate the financial activities of businesses, majorly in the firearm dealership and loans. It is because of this operation chokepoint, most of the financial institutions stopped working with some specific and related industries. Some of the worst-hit industries were firearms dealerships, Ammunition sellers, set-top box sellers, antique shops and credit repair companies.
Eventually the time changed and there was some positive growth in this sector as well. The industry did experience a change from August 2017. Now the banks and the payment service providers follow a different approach altogether. Earlier they used to decline applications from all the merchants from these specific industries. Today, they individually look at each Merchant account application with a customer centric approach. They do not come to any conclusion just by looking at the industry type. This is certainly very helpful for those High Risk businesses that are facing the shortage of payment processing solutions.
Europe can be considered more liberal in terms of the risk appetite of the merchant account acquirers. Payment service providers based in the United States of America, Canada and most of the developing countries mostly prefer to facilitate only low or mid risk business industries.
What should be a merchant’s approach in getting a stable and facilitating merchant account? When applying for a High Risk Merchant account a business owner should first try to find domestic solutions. A domestic solution is a high risk merchant account provider that is located in the same country where the merchant is located. For example, a merchant from USA working in travel industry gets a merchant account from any affiliated bank present in the United States of America. The benefit of working with a domestic payment service provider is that the merchant does not have to pay for the cross-border fee.
In case if you are unable to find a domestic merchant account, only then you should try offshore payment processing companies or Offshore Merchant account providers. These service providers are somewhat more expensive than domestic ones, but they do offer quality solutions to most of the industry types.
Alternative Modes of payments - ACH & E-check
You should also ask the service provider if they offer ACH (Automated Clearing House) payment processing services to High Risk businesses. Electronic cheque solutions are easy to use and most of the processors prefer to work in this mode of payment with most mid risk and a few high risk industries. With ACH you can also accept re-occurring or subscription based payments, unlike the strict policies of credit card companies. This can be highly effective for companies in industries viz. Herbal, Nutraceuticals, Tech support, Credit Repair and Weight loss.
How to keep a merchant account for long time? Once you get the merchant account, we strongly recommend you to follow a couple of best practices to make sure that the merchant account stays in good condition for a long time. Make sure that the data related to your business and the merchant account is firmly protected. You should use a highly secure server to store your emails and your customer information. Never collect the credit card information over the phone in case you don’t have a virtual terminal or MOTO provided by the payment service provider. You should also offer proactive and reliable support to your customers to reduce chargebacks and fraud. To make sure the chargeback and fraud ratio are within the limits recommended by your payment service provider, we strategically suggest that you should use chargeback Alerts and Notifications service. There is absolutely no cost to start the service. You may have to only pay for the alerts that you will see.
While choosing your payment gateway provider or merchant account provider for your High Risk Business we recommend you to keep below mentioned factors in your mind. Making the right selection based on these factors will help you to save a lot of cost in terms of your transaction rates, time investment, energy and manpower investment and overall cost of operation of the merchant account.
The Rate of Transaction – You should read the merchant account agreement before proceeding ahead with the payment processing service provider. Make sure you understand the rate of the transaction and any additional fees that are mentioned in the agreement. In case, if you think that the rate of the transaction is higher than your expectations then please go back to the acquirer and request for a reduction in fees. Do not sign the agreement until you are absolutely sure about the rates and fees. At times, the processor may put a clause for rolling reserve depending upon the risk factor of your business, you always have the liberty to negotiate with the service provider to conclude it.
Set-Up Charges – Application Fees: Most of our solutions come without any setup charges, which mean you do not have to make any payment to get any of the payment processing services started. Few of the service providers may charge a setup fees depending upon the services they offer. In that case, it will be a good idea to negotiate with them and see if they can reduce the fee or completely negate the same. Sometimes these processors may approve the deduction of setup fees from the first payout.
Monthly Maintenance Fee – We recommend you to look at the monthly maintenance fee or the monthly maintenance charge as well, set up on your account. You should also look at other fees which include wire transfer, return or refund charges, and chargeback fees.
Integration facility – A merchant should try to find out how easy it is to integrate the merchant account with his business website or the online platform used for his business. If one spends a little bit of time on the payment service providers’ website then he can easily find out about the available plugins. Plugins can be very helpful in case if you want an easy integration of the Credit Card processing system on your website. This further makes it easy for your customers to make online payments.
Funding or Payout Schedule – If your high risk merchant account provider is a domestic processor then most of the times they will do T+2 settlements that means the date of transaction + 2 business days. In case, if your processor is located in a different country than yours then the payout may be delayed. The processor can send you the payout schedule on request. Merchants, especially from the High Risk Industries, should try to maintain equal volume of transactions every week. This helps the system to work efficiently without any delays in Payouts.
Billing Descriptor – While applying for a Merchant Account make sure you mention an easy to recognize billing descriptor on the application form. This is the name that will appear on the credit card billing statement of the customer. Many companies put their support line number as a billing descriptor. This helps customers to call the support line number in case if they do not recognize the charge. Putting any irrelevant billing descriptor will certainly not help any merchant as it will create unnecessary confusion in the mind of the customers.
QUADRAPAY EUROPE LIMITED #Kemp House, 160 City Road, London, EC1V 2NX, UNITED KINGDOM Registered in UNITED KINGDOM, Number 11095222 +44 05603845586(UK)
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Before applying for a high risk merchant account you must analyze the payment service providers on the following aspects. To make it easy, consider these aspects as questions which you should ask the High risk merchant account provider. The answer to these questions will help you conclude the best deal.
How is the Brand Reputation of the Payment Service Provider?
A company which is involved in providing reliable services will certainly have good reviews. With the global expansion of technology and wide use of internet, digging up information and reviews of any company or organisation is just a matter of time. In case, if they do not have good reviews they will certainly not have negative reviews online as well. But you should try to do some search on the Internet in order to find out if there are any negative reviews about them. If there any negative reviews, you should try to analyse the reason for the negative review. You should also keep this thing in mind that when an organization becomes old, the expansion increases and there may be a certain set of customers who may have had bad experiences. But overall after looking at multiple reviews, you will be able to understand the reputation of the organization. Apart from this, if it is a public limited company and is listed on any stock exchange try to analyse the returns per share or EPS (Earnings per share). In other words how the company has performed on stock exchanges. These small researches will help you decide the right service provider for you.
Is The Payment Service Provider Experienced enough?
Yes, this is indeed an important question. To check this, you can verify how old is the website and how old is the company establishment. This will ensure that the company has been on the internet for quite a long time. If they have stayed on the internet for a sizable amount of time then there is a possibility that they have the vision to grow in the payment processing industry and you can rely on them. This doesn’t mean that nascent players aren’t capable of providing apt services but it is a precautionary measure to get the best out of all.
Is the Payment Service Provider Financially stable?
Yes, this is also a vital question. You should only work with an organization which has got strong financial Foundation. In today’s world payment service providers operate in multiple countries. If you’re working with a company which is cash-rich and has a strong financial foundation then you can certainly consider that company to be secure. As the market has expanded, some uncertainties have also originated along with it, which may adversely impact the complete global market. Thus, knowledge of the financial stability of the service provider assures you of a safe future.
How well is Client Reference for the Service Provider?
It is very important for you to work with reliable payment service providers especially if you are a high-risk Merchant. This is because if the payment service provider does not manage its portfolio carefully then the entire list of the merchants may face problems. Most of the payment service providers in the High-Risk space share some client information if you ask for it. Try to see if they have clients from your industry. If you are lucky you may also speak to the clients and ask about the experience. This will give you a holistic view about the reliability and stability of the payment service provider.
What is the current Pricing Information in the market?
High risk merchants should carefully analyse the rate of transaction and other fees charged by the payment service providers. This can be done by comparing the rate with other offers available in the market. There is no harm in trying to negotiate for the pricing. This is very important in relation to your investment perspective because the market competitiveness can help you find the best prices for the service you are looking for.
How is the Product Portfolio of the Payment Service Provider?
Every visionary business owner will try to join hands with an organization that has a massive product portfolio. The range of product and services offered by a service provider exhibits the possible market expansion of the company and it also helps you determine the potentially useful service for your business. This will ensure a regular supply of alternative payment processing modes if needed. See if the service provider offers a point of sales devices, ACH or E-check payment processing, virtual terminal/MOTO or any alternative options.
How Big Is The Team?
It may be difficult to get the answer to this question but if a company has stayed in the industry for some time then they will certainly let you know about the number of full-time employees. An easy way of checking this would be to analyse the LinkedIn page of the company or information of organisation on Glassdoor website. If we talk in terms of customer service, tech support, specialised services and dedicated deliverance, the manpower of an organisation plays a very important role in that.
Where is The Acquirer located?
As a merchant, you should work with the service provider that offers maximum success ratio and help you accept maximum modes of payment. Based on our understanding Acquirers located in the United States, UK, Australia, and Canada offer better options and success ratio than many others. But, most of the acquirers that offer High Risk Merchant Accounts are located outside the United States. This may result in a massive drop in terms of transactions acceptance that means the merchant gets fewer options in terms of modes of payment.