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How do you know if you need a high risk merchant account? And why would a bank consider you in the high risk category? It’s critical to determine the distinctions between the types of businesses that fall into this category. Understanding where your company lies in the field of account regulations can help you hedge risk and prepare for stable growth. There are certain companies like Authoize.net and NMI who provide gateway solutions for high risk accounts, and working with them will allow you to have the technology you need to process payments online through your ecommerce platform.
If you’re growing your business on Shopify, WooCommerce or another online platform, you’ll want to make sure your high risk merchant account is sustainable. This way you can be sure your bank will keep your account open and you’ll be able to continue processing transactions for your customers. Companies like Stripe and Square are beginning to take on new merchants outside of the low risk space, however, there are many merchants who do not fulfill the requirements these companies enforce. And when this happens, your merchant account can close unexpectedly, putting you out of business for days or even weeks.
Compare Merchant Accounts
It’s crucial that you research and understand your options with high risk merchant account providers. For example, a company like PayKings is well established in the industry and has provided payment processing solutions for over nine years.
Customer service and fast setup is important in getting you from startup to an established business. Speak on the phone and find out which team helps inform and educate you on the process. Knowing how processing fees are charged, and which options best suit your company is important for maintaining profits and increasing your margins on sales in the long run. Remember, the more monthly revenue you make overtime gives you more leverage to negotiate lower costs with your provider.
If you’re an established business, you have a proven track record of safe and ongoing payments. This means you’ll be able to get lower fees depending on your product vertical.
Do your due diligence on high risk merchant account companies. With reputable companies, like PayKings, who are offering high risk payment processing solutions, like merchant accounts. Certain companies are better equipped to handle international customers. Overseas merchant accounts require a complex network of established banking connections worldwide. This is sometimes difficult for American companies to procure, as it means understanding the deep diplomatic financial ties related to each country they want to do business in. For now, you’re more likely to get high risk payment processing if both you and your company are physically based in the country you are seeking to obtain a merchant account in.
High risk merchant account
Instant Approval for Merchant Accounts
It may be tempting to search for instant approval for your high risk merchant account, but unfortunately, that concept is inconsistent with the industry. If you are looking to open an account fast, then you’ll need to work with a company that can establish banking connections. Companies that offer instant approval will review your application days to weeks later, and see that your high risk business is not acceptable for their banking regulations.
High risk merchants can expedite their processing request by providing information. In this case, you’ll have to share fiscal company information with your broker and bank. Include a cover letter about your company, product, owners, history, and goals. This will help inform all relevant parties about the specifics of your company and tell the story about what they can expect in terms of processing in the future.
A cover letter with financial docs shares the most important information regarding your account. This will be the tool banks use to provide a processing limit which will best approximate the most revenue you’re likely to intake in a month. For the sake of permanency, avoid companies pitching solutions that are faster than normal or have unnaturally low rates. These are signs of scams and potential companies that are set up to take your financial information and use it for malice.
Best Payment Gateways
The term payment gateway is often used synonymously with merchant account. This malapropism is due to the fact that a merchant account requires a gateway. A gateway is the technology required to process the financial data while the account or MID is where the actual funds go. Ecommerce stores with $5,000 – $1,000,000 alike in monthly volume all need these same kinds of tools. Gateways like NMI or Authorize.net pair with companies like PayKings to provide the necessary resources you’ll need to get your merchant account up and running.
If you’re considered high risk because you offer products like, Adult items, CBD, vape gear, travel products, or any items that have high chargebacks, it’s prudent to research the top high risk merchant accounts and find one that suits you.
