Getting a merchant account is not as easy as it sounds to be. There are several reasons for a bank to reject your application for a merchant account which includes the nature of your business being very risky or high number of credit card charge backs or low turnover or even, not having enough experience in the industry. However, the most number of times a company has been rejected from getting a merchant account is due to the fact that their company deals with or are involved with businesses which are risky such as gaming. But there is a very old belief in business which is “The higher the risk the higher the returns”, which makes it impossible for the banks to totally ignore such businesses.

In such a case the only solution would be to apply for a “High Risk Merchant Account”. Businesses which are considered risky are tobacco companies, online cigarette companies, sports wagering, travel services, pharmaceutical products, adult services and online gambling or any other business which has an unusually large turnover and high risk of fraud. But, if you think that your company does not deal with such risky businesses then you are better off with the standard account or the offshore account. Once obtained, the “High Risk Merchant Account” will enable your business to accept credit card payments over the net for the “High Risk Services” provided by you.

The Rates and fees for High Risk Merchant Accounts are not the same as for the standard account or the offshore account. While getting your “High Risk Merchant Account”, you should not be surprised if you have to pay a high setup fee, while this is not required for the standard account. This is necessary because the provider of such an account is at a higher risk than the user. Very obviously, you also have to pay much higher rates to process the credit cards used by your customers.

There are several difficulty issues in obtaining a “High Risk Merchant Account”. If you have tried to get it directly from a bank and were rejected due to the obvious reasons, then you should contact a 3rd party processor of credit cards. The providers or banks rejected your application because they are not willing to take the risk of chargeback’s in your business. Thinking that, you will not be able to obtain a merchant account since your line of business is very risky, is absolutely incorrect. You only have to do proper research to get your business the edge over your competitors.

“Low Cost High Risk Merchant Accounts” are a myth and do not exist. The providers only use this phrase to attract customers. It is better if you accept the fact that your line of business is risky and therefore, you have to pay high rates for the processing of credit cards used by your customers. However, all hope is not lost. Since there are several providers in this line too, you many get a good deal due to the competitive edge.

Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account, high risk ach account or offshore merchant account for a high risk merchant.