Is High-Risk Credit Card Processing Getting Harder to Find?

From time to time, certain businesses suddenly find that their merchant account has been closed. Other businesses are never able to secure a merchant account in the first place. Without a merchant account the business is unable to process its customers credit and debit card purchases. Without no way of safely processing these transactions, the business is forced to operate in cash only – obviously a completely inefficient and unsafe option.

In this situation, many businesses turn to high-risk credit card processing. Even this option can be hard to find. Some are even concerned that this solution is becoming increasingly sparse, but is it really?

What is High-Risk Credit Card Processing?

If you feel that banks are turning more and more high-risk businesses away, you are probably right. Traditional providers are simply unwilling to work with high-risk businesses and have increasingly become more and more hesitant to provide merchant accounts for them. Many notify the high-risk businesses they do have a relationship that they have had to close their account and give a 30-day notice. Frantically, the business runs to other high-risk payment processors for solutions.

What Makes a Business “High-Risk”?

So, what makes a business “high-risk”? The two biggest reasons include: a typically high rate of chargebacks and unusually high-volume sales. Other reasons you might be categorized as high-risk include: bad or no credit, limited time in business (startups), little industry regulation, cash-flow issues and a history of bankruptcy or tax liens. Additional factors that will determine whether your business needs a high-risk merchant account include: business location, business size, credit card processing history and whether your business operates exclusively online.

How to Choose a High-Risk Provider

Securing high risk credit card processing from a high-risk provider will allow your business to easily process your customers’ credit and debit card transactions – minus the worry of having your account unexpectedly closed. The application process for high risk merchant accounts is also known for being simple, fast and hassle free. The key is to find high risk processors with years of experience that specialize in working with business types and industries that struggle to find solutions elsewhere. Make sure you also compare their setup process, all fees involved, their payment gateway solutions and chargeback protection programs.

Author Bio: Electronic payments expert Blair Thomas co-founded eMerchantBroker, serving both traditional and high-risk merchants. His passions include producing music, and traveling.