High Risk merchants usually pay a high transaction fee. Most of the times the rates for high risk industry starts at 3.5% Per transaction MDR. This transaction fee can also increase depending on the industry. MDR also depends on the financial standing of the business and the business owners. Some providers charge even higher fees for specific Industries like.
- Credit repair
- Tech support
- Web design/Seo/Smo/Internet Marketing
- Document preparation services
- Job sites/Resume Services
- Matrimonial websites/Matchmakers
- Online dating websites and Dating Apps
- Nutraceuticals/Ayurveda products/Weight Loss products
- Online magazine Sales/Anime Magazine
- Astrology/Tarot Card Readers/Faith healers(Sessions Only)
- Extended warranty.
- Satellite TV Set-top Boxes 16. Licensed IPTV Companies
Most acquirers in the high risk processing industry ask the merchant to pay a setup fee. The setup fee can range from $300 to $1,500. The setup fee depends a lot on the business type and the industry in which the merchant is operating. The higher the risk, the more the setup fee. The merchant should try to request the acquirer to deduct the setup fee from the payout. Most of the processing companies may offer this flexibility. The setup fee helps the provider to stay away from non-serious merchants. It also helps in risk mitigation from the beginning. Merchants from low risk Industries can also have high risk associated. This can happen if the credit score of the business owner is bad. This kind of merchant needs a bad credit merchant account. In the United States of America, a lot of merchants struggle with the problem of bad credit. Unfortunately, they find it hard to get a bank account as well as a merchant account. This can lead the merchant to a problematic situation. This may even force him to close his business. These merchants can get high risk merchant services and start accepting credit transactions.