Tier 1 Quality High Risk Merchant Account
A high risk merchant account is a specialized credit card processing account for merchants operating in select industries. The payment industry refers to these merchants as high risk brand merchants. Businesses from such industries are subject to strict underwriting, and the processors are responsible for constant monitoring.
The reason behind identifying high risk industries is to ensure that genuine merchants from such industries get legitimate access to card processing solutions while keeping bad actors away.
Sometimes, merchants from non-high-risk industries may also be judged the same way. This can be due to low credit scores, high ticket sizes, delayed deliveries, reputational risks, previous account shutdowns, seasonal business, political exposure, jurisdiction, and nationality issues. All these factors can sometimes negatively impact the approval of the merchant account.
For any business, the ability to accept credit and debit card transactions is paramount. Not having this ability restricts the growth of the company. Traditional payment methods like cash and bank transfers are not enough. Being classified as high risk can be depressing and can have severe negative financial impacts on the individual and business.
Fortunately, there are still options. For businesses that are legitimate, compliant, and regulated there are high risk merchant account solutions. These are special accounts provided by experienced processors and acquiring banks. High risk merchants from select industries are required to undergo a paid high risk merchant registration. The sponsor banks and processors are also required to be in full compliance with the latest card brand recommendations.
The team at QuadraPay has established extensive connections with various high risk processors. Our expertise will help you save time and money. Ask us today for a zero obligation quote for a high risk merchant account.
Features of High-Risk Merchant Accounts
Getting the account approved, along with obtaining high risk merchant registration, positions a merchant in a much better spot than many others. Merchants can focus on business improvement without living in fear of the unknown.
Regular monitoring by qualified processors helps businesses reduce the risk of chargebacks. Additional filters and tools keep a real-time watch on fraudulent transactions. High risk processors use various tools like CDRN alerts, 3DS, AVS, and card velocity limitations, all of which help merchants keep the account safe.
Sometimes, high risk merchants get lucky and get approved by low risk aggregators; however, those accounts don’t last long. Often, these low risk acquirers even report the merchant to the MATCH list, which further creates problems.
It is worth knowing that there are two types of high-risk solution providers. Some want to exploit merchants’ situations and charge high transaction fees, while there are others that are honest and charge reasonably with the objective to build a strong support system for the merchants. QuadraPay solutions are powered by similar high-risk PSPs. In most cases, our merchants pay rates very similar to many low-risk merchants.
KYC Documentation for High-Risk Merchant Accounts.
You will need to submit KYC documents to obtain a high-risk merchant account. These include government-approved identification proof and a business registration certificate. You’ll also need to provide your latest bank statements and processing statement, along with a voided check or a letter of good standing from your bank. You can speed up the application process if you have all these documents ready. Contact us today to get a detailed list of KYC documents specific to your industry!
FAQ: High Risk Credit Card Processing
What Are the Biggest Mistakes of High-Risk Merchants?
Sometimes, high-risk merchants make mistakes that can reduce the chances of account approval. Many merchants try to hide the real business and present something else. Underwriters are smart; they are trained to differentiate between genuine and fake. If an underwriter identifies that the merchant is displaying a false business model, it can result in a permanent rejection from that processor.
Another mistake that must be highlighted is the restlessness of high-risk merchants. They sometimes submit applications at multiple locations hoping to improve their chances of approval. Unfortunately, this approach works negatively because the number of verified high-risk processors is very limited in each region. If the same processor receives your application from multiple ISOs, it won’t create a good impression. You don’t want to appear desperate, so stay calm and let Quadrapay handle your high-risk merchant services headhunt.
How to Choose the Billing Descriptor for a High-Risk Merchant Account
The purpose of a billing descriptor is to identify the merchant. The descriptor shows up on card account statements and merchant receipts. Some merchants prefer to use the company name, while others opt for a phone number, and some may wish to have a combination of both. If your business customers prioritize privacy, then it may be better to simply use a phone number.
Is There a List of Industries That Are Considered High Risk by Acquiring Banks?
The acceptable industry list keeps changing based on many factors; however, these industries are generally considered high risk by credit card processors: Air Charters, Airlines, Asset Protection, Auctions, Coaching, Collections, Continuity, and Cruise Lines.
