Online Merchant

High Risk Merchant Accounts

Posted on 11. Feb, 2009 by admin in High Risk Merchant

A High Risk Merchant Account is required for certain types of activities which are deemed “undesirable” by the card associations. These businesses include a range of different types of businesses, including the adult industry, Travel industry, and many others that we will see below. There are several reasons why these companies are “undesirable”, but for most, the risk of chargebacks “seems to be the underlying factor, as the majority of these types of high risk have a history to obtain a high percentage of chargebacks vs other types of businesses.

Chargeback is when a client receives an “inverted”, by complaining about the transaction with their credit card issuing bank. Many complaints can get merchant account shut down, sometimes to close forever.

Some types of “High Risk Merchant Types:

• Adult Industry
• Bail Bondsmen
• Corner Shops
• Escort Service
• Ticket sales high
• Gun Stores
• The online pharmacies
• Tickets
• Part Time Sales
• Travel Related
• Water Purifiers

The first starting point when looking at high risk for a merchant account would be a company that specializes in accounts and high risk. Note, the banks will accept different levels of risk, you have a chance May get a traditional merchant account, without the additional costs associated with high risks.

If this does not work and you said that the traditional merchant account is out of question, you’ll need to proceed with the “high risk” applies. Keep in mind that you’ll need several documents and May have to jump through hoops, but with a little perseverance and a lot of patients can be successful in the approval to accept credit cards .

Things To Expect:

1. High Risk Application Fee
2. Potential Association Fee
3. Financial Statements
4. Business License
5. Articles of Incorporation
6. Key statements
7. Marketing Materials