In fact, greater chargeback fraud challenges is why some banks consider certain industries to be high-risk. Commonly called a payment gateway merchant account, a virtual terminal allows you to accept payments over the phone, via mail order, or typed into a special website via your computer . A retail merchant account allows your company to accept face-to-face credit and debit transactions via a traditional credit card machine or point of sale system. Sorry, we are unable to provide merchant services for foreign or offshore businesses, or any company that is headquartered, or operates, outside of the USA. We are also unable to provide merchant services for any business whose owner does not have a valid SSN and US issued identification (driver’s license, US passport, etc).
It acts as legal permission to accept credit card payments online. It also allows accepting wires, E-wallet payments, crypto, debit cards, and international payment methods of merchant’s choice. To get a high-risk merchant account, one needs to fill out the application. Once a payment system provider approves the application, a merchant receives a payment gateway, the software that allows accepting payments online. Instabill specialises in providing high-risk merchant accounts to businesses around the world.
Easy Pay Direct: Best for shopping cart integrations
High chargeback rates, large transaction volumes, and casual high-cost sales turn to be a real pain in the neck for high-risk e-commerce businesses. Since most of them work in highly regulated fields, they run into problems when seeking reliable high-risk merchant solutions. However, it is often advantageous for high risk merchants to separate the costs and not pay exorbitant processing fees for declined transactions. You have a rolling reserve account which can be as much as a cap of 50% of the approved monthly volume. Depending on your issuing bank and your payment processor, your rolling reserve can be held up to 180 days post merchant account closure. Below is an infographic to make sure you’re getting the most out of your payment provider.
- In addition to the Authorize.Net and USAePay gateways, it also offers the NMI payment gateway, which can integrate with most of the more popular online shopping carts.
- Low credit score.If the merchant has a low credit score, they may be deemed high-risk.
- A merchant account for a high-risk business tends to be more difficult to obtain, and it typically costs more to maintain.
Learn all about high-risk credit card processing and merchant accounts, including the pros and cons, and which businesses need one. This type of merchant account best suited for a traditional storefront retail setting with a reliable wired internet connection. Retail credit card processing has the lowest cost, because https://www.wave-accounting.net/ of its lower risk of fraud or chargebacks. National Processing prices its plans based on your type of business and also has plans for offering cash discounts and ACH transfers. With cash discounts, you can pass processing fees along to your customers on card payments and charge less for cash transactions.
PERSONALIZED HIGH-RISK MERCHANT ACCOUNTS
Perhaps you have a type of business that sells expensive items – furniture, jet charters, seminars, or tax resolution services, for instance. The business might be on a High Risk Merchant Account Payment Processing Providers TMF/ MATCH list or the industry you’re in is known for high chargeback ratios. Industry minimum rates for all merchant types, starting at 2.3% + $0.10 per transaction.
Ruairi specialises in tools that can be used to grow your business and has done research for a wide range of categories on Expert Market, such as EPOS, Website Builders, and Merchant Accounts. Rob writes mainly about the payments industry, but also brings to the table industry-specific knowledge of CRM software, business loans, fulfilment, and invoice finance. When not exasperating his editor with bad puns, he can be found relaxing in a sunny (socially-distanced) corner, with a beer and a battered copy of Dostoevsky. That includes onboarding, access to resources like webinars and demos, and unlimited support. “Ensure your provider is specialized in managing high-risk clients … and read your processor’s contract carefully to know their criteria and terms in labeling merchants as high-risk,” he said.