High Risk Merchant Highriskpay.com status requires meeting certain requirements to accept payments online. These requirements include paying higher fees and maintaining a reserve account to cover chargebacks.
Payment processors consider numerous factors when assessing whether your business is considered high risk, including industry, transaction size and whether you operate in countries deemed high-risk for fraud (US, Canada, Japan or Australia). They will also take credit history into account and consider other relevant details.
Industry Specific Requirements
If your business operates in an industry considered high risk, payment processors may conduct more extensive examinations of it. This could involve gathering more documentation, financial statements, credit histories, processing histories and processing history than is usual for low risk businesses. You may also incur increased fees and reserves.
Find a provider who understands and has experience working with high-risk merchants is essential, as this will allow for more transparency around services, pricing, restrictions and fees. In particular, interior decorating or furniture sales merchants will want to ensure their chosen processor does not pose a risk in processing misconduct or nonpayment which could land them on the TMF (or MATCH) list and ultimately result in their merchant account being denied with adverse repercussions for revenue stream and overall business performance.
Credit Card Processing Requirements
If your business falls into the “high risk” category, obtaining a merchant account could prove more challenging than usual. To increase your chances of approval and reduce chargebacks while maintaining healthy cash levels in bank accounts. It is also crucial that all relevant information during the application process be disclosed fully while keeping important documents on hand such as six month bank statements and tax returns ready for inspection by potential providers.
Payment processors will assess your business based on its industry and business model before allocating a Merchant Category Code (MCC).
Finding a payment processor who specializes in working with high-risk merchants and has expertise in your specific industry will speed up and increase the chances of approval, so that once approved you can begin processing payments for customers. This will help your business expand while building clientele.
Chargeback Requirements
Chargebacks can be an indicator of high risk. Too many chargebacks could land your business on the MATCH list or lead to termination from its merchant account provider, as well as higher processing fees each month.
High risk merchants require additional documentation than lower risk businesses, including more details about their business and finances, plus they might need a larger reserve requirement or use extra fraud prevention tools.
Finding a payment processor who understands the needs of high-risk merchants is vital to their business success, helping to avoid hidden fees, unexpected charges and other hassles. Make sure they offer transparent pricing online; then find one who offers low rates, reliable processing services and excellent customer support – you won’t regret your choice!
Fees
High Risk Merchants incur higher credit card processing fees, interchange rates, and chargeback fees due to their additional risks associated with high-risk transactions. Some fees must be paid on an ongoing basis while some are one-time charges only. These additional expenses are necessary in order to compensate for them.
Finding a payment processor who is transparent about their fees is of utmost importance. The best processors should clearly display rates and fees on their websites and be willing to answer questions over the phone or via online chat about these fees.
Find a processor who accepts the transaction types relevant to your business – some processors only offer payment processing, while others may also offer merchant accounts, POS systems and more. Furthermore, find one with experience working with businesses in your industry as this will ensure they understand its unique challenges and compliance needs.
