A high-risk merchant account is a type of merchant account that accepts credit card payments from customers of a "high-risk" business, such as online gaming, pharmaceuticals, travel, telemarketing, and the like. Setting up such an account can be difficult, but it surely has many benefits for your business. If a retailer cannot acquire that account from their local bank, they can try other alternatives, such as setting up an account "online".

Almost any type of business in North Carolina now opts for an account due to its many business benefits and the added convenience for both the merchant and the customers. But not all businesses can take advantage of an "ordinary" account through their local banks for the reason that they may be rated as high risk, so a "high risk" business account is what they need.

What is a high risk merchant account?

It is a type of account that is specifically for companies that are highly associated in these types of transactions. Once these types of businesses get that far, they will be able to accept credit card payments from their customers.

Types of companies that need such an account

High-risk companies are those that have high sales volumes or chargebacks, a money-back guarantee policy, or a high rate of customer dissatisfaction. Below are specific businesses that fall into this category:

* Online games like casinos or lotteries
* Online dating
* Travel
* Entertainment / adult content and toys
* Online auctions
* Online mortgage or debt services
* Gambling or online casinos
* Telemarketing
* Sale of cigarettes and tobacco
* Interactive games
* Web hosting services or ISP
* Nutraceuticals or pharmaceuticals
* Replica sales
* Car rental and sale
* Sale of telecommunications equipment
* Multi-level marketing
* Insurance
* Home business
* Weapons dealers
* Pawnshops
* Computer and gadget stores
* Software downloads
* Mail order / phone order

Set up a high risk merchant account

These companies may have a difficult time finding an account provider for their credit card processing needs. This is because most banks or other financial institutions are now careful to provide business services to companies. This is due to the high risks of credit card fraud or other issues involved in such deals.

Account providers may need to analyze the amount of time the applicant is involved in the business, including their chargeback history. If an applicant has very low chargebacks and has been in business for a long time, the supplier will likely give the applicant an account. It will also take several weeks for that account to be approved.

Setting up an account can be a bit expensive than a regular one simply because it has higher credit card processing fees. Rates or fees vary from provider to provider. The good news is that these account providers do not require their applicants to make an initial security deposit for their accounts.

Advantages of a high-risk merchant account

The benefits of this account include acceptance of almost all major credit card types by customers, 24/7 customer service, real-time credit card processing, transactions in multiple currencies and the holder may have some chance of obtaining tax benefits. https://octapay.fund/

Author's Bio: 

The hardest step in setting up a high risk merchant account is qualifying for it. Business account providers will evaluate your credit report and previous business accounts you have.