Credit card processing is the acceptance of credit cards, debit cards. However when it comes to processing payments for high risk businesses, you need a high-risk merchant provider that caters to high risk industries. In this blog, you will learn everything about credit card processing and more importantly how to find a high risk merchant provider.
Credit card payments are usually accepted within seconds, but there’s an intricate process involving approval and verification behind the scenes. Credit card networks use various security protocols to transfer billions of transactions between banks, processors, and merchants.
Generally, 2.0% – 4 % is the range of good effective rates for credit card processing. If your rate is higher than that level, it could be due to various reasons. Below are some reasons why you might have to pay a higher rate:
The processor has designated your business ‘high-risk.’
Hidden costs
Your total sales volume
And more
If you want to learn more about the different high risk credit card processing rates, contact our team at My Payment Solutions USA today.
High-risk credit card processing comes with higher rates. Processing companies designate such businesses as high risk due to a number of factors including:
Rates of fraud
Industry-wide issues
A ‘high-risk’ status may also be assigned to a specific business industry.
To manage high-risk clients, processors subject them to high rates, tiered pricing models, rolling or rolling reserves. A rolling reserve is when the processor holds part of your daily transaction income. It is meant as insurance for the bank against refund incidences and disproportionate chargebacks. Thus, a minimum reserve is where you are required to maintain a specific amount of cash with the processor.
Businesses in the following industries are generally considered high-risk:
Travel
Gambling and Online Gaming
Antiquities and Collectibles -including rare cars
Debt Collectors
Cannabis Sector
Telemarketing and affiliate marketers
Life Coaching
Legal
Pharmaceuticals
Adult Entertainment
If you fall under one of these categories, don’t worry we can help you setup a high risk merchant account setup in no time.
In most cases, there’s not much you can do to escape the high-risk’ designation. Your best option is understanding the terms and conditions of your high risk credit card processor before making a final decision.
Always go for a processor that can work with your business, has anti-fraud tools, and provides a transparent fee structure. Here are the 5 best high-risk credit card processors:
Square
Helcim
Paypal
TYS
If your business is ‘high-risk’, it doesn’t mean you have to stop accepting credit and debit card payments. Reach out to one of these companies today.
For more information on credit card processing, schedule a call on our calendar, and we will help you select the best plan for your business. If you have any questions right now don’t hesitate to call our team at 1-800-734-3424.
