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Your business might be operating in a particular industry that is considered to be high-risk. This means that there is a good chance that they would have to provide a high chargeback ratio. As a result, you might find it difficult to offer your customers the facility to pay through their cards. 

Nevertheless, there are reliable service providers such as Pay.cc that allow you to get a high-risk merchant account. But before you get into business with them, there are a few things that you need to keep in mind. Let’s go over them in detail to give you a better idea about a high-risk merchant.  

Factors That Make Your Business High-Risk Merchant Account

Before choosing a high-risk account, you need to know whether or not your business is at high risk. There are different factors that can decide if the business falls in the high-risk category, such as: 

• Industry type – A few industries like gambling and adult sites are known for their high cancelations. 
• Chargeback, fraud, and refunds – If your business has a high number of transactions, then it increases the chances of a high average of chargebacks, refunds, or fraud.
• Business’s existence – If the business is newly established, then it can be a high-risk
• Not enough transactions – Your business can be in the high-risk category if there aren’t enough transactions every month to calculate the average score for the chargeback ratio

Choosing a High-Risk Merchant Account: Factors You Need to Look At

Now that you know whether or not your business falls in the high merchant risk business category, you would be looking for a provider. However, it is important that you consider the following factors when choosing one. 

Up-to-date technology with Easy Onboarding 

The open banking payment gateway provider that you choose should know about the latest payment trends. Furthermore, they should provide an open API. In addition to that, the process to get started with them shouldn’t be too long. As a high-risk merchant, onboarding would take some time. 

But it should not take you weeks to set up an account. Discuss with the high-risk payment processors about the time it would take to set up the account. Most importantly, you shouldn’t go for business with a little understanding of the tech world. They won’t be able to help your business achieve its goals. 

Timely Customer Support Services 

You should choose a credit card processor that should cater to your unique needs. This is particularly important for businesses that operate in: 

• Multiple industries
• Certain industries that have special needs 
• A diverse group of countries

A bad transaction can quickly create a snowball effect, creating more problems down the road. Therefore, you should go for a provider that has proactive support. They should be there to assist you when you are facing any issues.

No Hidden Fees

One of the most critical things that you need to keep an eye on when choosing a high-risk payment processor is the fees. Your business would have to pay higher fees, considering the greater risk factor for the chargeback. But that doesn’t mean you pay them for additional fees that you didn’t know about. 

It is highly imperative that you discuss all the fees and costs upfront. This would save you from paying any additional fees that you were not informed of before. You can check out the high-risk payment processor’s website to get all the relevant information about the charge. A reputable service provider would be completely transparent about the fees that your business will incur. 

Reputation and Name in the Market 

Getting a high-risk merchant account would take some time. You would have to go through a long onboarding process and also have to deal with the customization. This is something that unreliable and unprofessional service providers in the market take advantage of. 

They would entice you with an easy sign-up process and then bind you with contracts. So, you need to be aware of any such high-risk merchant accounts that offer you shady deals. You need to research and know what the standing of a particular payment processor is in a market before you sign up with them. 

Custom Open Banking Payment Gateway Options and Anti-Fraud Tools

The provider that you choose for your open banking payment gateway should be able to handle your business preference. This should be evident through the various custom payment options that your business needs. Furthermore, they also need to provide you with complete safety and security. 

High-risk accounts are more prone to fraudulent behavior. Therefore, it is important to find a merchant account that has robust security measures. It should have a multifactor authentication along with chargeback prevention.

Final Word 

Knowing about the factors mentioned in this article will allow you to find the best high-risk merchant account provider in the market. It would save you from going through a lot of hassle.