How a merchant services provider treats a high-risk business can also vary widely.
Many providers, particularly those that try to offer merchant services at the lowest possible prices, simply do not accept any high-risk businesses at all.
Either you’re high-risk, or you’re not – there is no middle ground.
Beyond that, it gets complicated as every processor has their own unique guidelines for determining whether you’re in the high-risk category.
In this article, we’ll discuss the factors that lead to a business being labeled high-risk and how this determination will affect your ability to get a merchant account.
We’ll also provide some recommendations for high-quality providers that specialize in servicing the high-risk sector.
While it would be nice if credit card processors treated all businesses equally, the fact is that they don’t.
If you’re considering a particular provider, check their website or contact them directly to see if they find your business to be high-risk.
This can save you a lot of time and effort in wasted applications to providers who aren’t going to approve you.
This helps to reduce their exposure to fraud and keeps costs low for their existing clients.
Other providers will allow certain high-risk companies, but will charge you significantly higher rates and fees for your merchant account due to the elevated risk they’re accepting by giving you a merchant account.