LINKS

"
THE LOWEST RATES...
MOST BUSINESS TYPES...
WE SAY YES WHEN
OTHERS SAY NO...
7 DAY APPROVAL...
NO HIDDEN FEES...

"

 
 
1.800.393.3230
 
 


   

WILL BANKS APPROVE HIGH RISK MERCHANT ACCOUNTS?

Risk is involved in all types of businesses. A businessman should have the capability to handle even the poorest situations of the market. Huge businesses are also called as high risk as the profit margin as well as the loss is high, if experienced. But the question arises whether the bank will approve high risk merchant account or not. It is difficult to get approval for high risk merchant accounts. The bank issues the high risk merchant account only if the merchant has a long term business experience in the marketing strategy. The new merchants cannot easily get a high risk merchant account.

The banks play an important role in providing financial help to the customers as well as the merchants. There are many merchants doing the high risk merchandise business in the modern world. There were cases that were recorded when the merchants turned bankrupt and were unable to repay back the loan amount to the bank. Because of such risks, the banks provide the merchant account only after the proper verification of the application of the merchants. If a merchant account is approved for the high risk business, then it is called as a High Risk Merchant account.

If a merchant has no idea about the high risk merchant account, then it is advised to take help of the expert professionals or the broker. There are many restrictions while applying for high risk merchant accounts. The business professionals or the brokers will guide the merchant to obtain a merchant account. An international merchandise business is also considered as high risk. A merchant can do the business from one place reaching the customers to the other place. In other words, while applying for a merchant account, a merchant can opt for high risk business located at another region. Depending upon the business type, the degree of redundancy will protect the business from future risks. Since, there are chargeback costs implied to the merchants, the banks are concerned about the risk involved if any transaction is returned. At this point of time, the merchant is charged a certain amount of money as charge back fees. If the credit card holder wants back the fund into his account due to various reasons, a charge back fee is levied on the merchant. This is a service charge for the bank. If a customer does not get back the fund or the amount credited into the account, then he/she can file a case against that merchant within 180 days from the date of application. Within that period, if the customer makes any purchases, then the bank is liable to pay off the value of the bill.

If a customer has already paid the amount and has not received any response or service from the merchants, then a case can be registered against the merchant. At such times, the bank imposes a charge back fee to the merchant account holder for such deceptive measures. The fraudsters and the scammers effect the smooth functioning of the business. These frauds use the internet services to lure the customers into their traps and then cheat them. At such times, neither the bank nor the customers can be blamed. Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.