Do You Require High-Risk Merchant Account For Your UK-Based Businesses?
Setting up a business in the United Kingdom can be a good option for entrepreneurs. There are over more than 5 million registered companies in the United Kingdom. SME or small and medium enterprise covers the largest share of the total businesses setup. 99.9% of the businesses populations are SMEs. Entrepreneurs thinking to kickstart their start-up in the UK can be a good option. Not only for start-ups but also for those UK merchants who are already in business for a while. Every business needs a payment solution to run their business. No matter if you are B2B business or B2C or small business, every business needs a payment solution to streamline the flow of online transactions. If your company has high monthly sales volume or huge chargebacks, then you are classified as high-risk by the merchant service provider. If your business or industry falls under the high-risk category, you need a High-risk Online Merchant Account In the UK. Don’t worry! Being categorized in the high-risk category doesn’t mean that you are blacklisted. It just defines that your business requires a special merchant account to operate smoothly.
Is Your UK Based Business Categorized As High Risk? Know-How To Self Evaluate?
Accepting credit card payments is crucial for your businesses. High-Risk businesses find it challenging to obtain a merchant account. They are advised to go for a high-risk merchant account. Finding a high-risk online merchant account in the UK may be troublesome, but we at Quadrapay make it easy for you. Anyways, let’s discuss the factors that flag a business as high-risk.
- High Monthly Sales Volume: Your sales volume is so large that the processor or merchant service provider can’t support it.
- Chargeback: The product or services you are offering to your customers have a longer chargeback obligation period. A lot of chargebacks in the processing history seem terrible to the processor. A chargeback is very frustrating to merchants and hinders in sales.
- Industry Type: You are in an industry that is flag as risky by the banks and processors. The reason to categorize the whole industry riskily is that they are usually not able to follow the bank compliance. The exceed the threshold value of chargebacks or monthly transaction limit.
- Reputational Risk: A reputation risk is a potential loss to the name of businesses. Due to the fear of name malignation, banks or processors do not offer merchant services to high-risk merchants or industries.
Present In MATCH List: MATCH or Member Alert to Control High-Risk is a watch list which identifies the list of potentially high-risk merchants. Card networks and processors access a MATCH list before entering into a merchant agreement. The business is getting into the list due to past actions of the business. Those actions can be money laundering, Money laundering, Excessive chargebacks, Fraud, Illegal transactions, or Identity theft.
- Prohibited Products: If in case, your industry is considered as prohibited industry or banned industry by credit card brands, then you may not get on-board by that bank. But it is not true with all the banks. There are cases that the industries considered as prohibited by one bank may not be considered prohibited by another bank.
- Recurring Business Model: Recurring billing features or membership-based website are considered to be risky. If your business also offers recurring or subscription facilities, get ready to go for a High-risk online merchant account.
- Future Deliverable Service: Some of the businesses sell future deliverable products and services like an event organizer, tickets, hotel reservation, flight booking etc.
Every Online merchant account provider has its own set of criteria to flag your business as low or high risk. If your business is flag as high risk by the processor, then it is somewhat harder to get you on-board. But we at Quadrapay understands how crucial it is to accept online payments for your business. To get started, fill the pre-approval form, and we will get back to you to understand what you require and what fits best for you.
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