High Risk Merchant Accounts & Credit Card Processing Summery
About High Risk Merchant Accounts:
High risk merchant accounts are simply opened in order to process credit cards but they come under the list that identifies that particular merchant at high risk at all bank branches. This high risk status tagged to any organization usually depends upon type of industry you are owning and amount of total charge back that you face at the time of routine business course. Just for an example if we consider a travel business company then it is considered under high risk just because of the possibilities of booking cancellations. As we all know that travel related works are affected by so many external factors such as changing weather conditions as well as mood swings of customer. Most of the times owners of these types of companies may receive more than usual amount of charge back and thus they come under the category of high risk merchants. One more example can be adult related businesses where consumers use to claim that they never visited any adult website as it was not for them and may ask for charge back. For such type of businesses where customers can claim that this site was not for them so their amount must be returned it is important to keep proper track of customer transactions and all visits. In case of face to face transactions, it is good to have signature on credit cards receipts that may secure every transaction and can reduce changes of claims for charge back. For these high risk merchants it is important to handle charge backs carefully in order to save profits and run business on proper track.
Why a business is considered on High risk?
In case, your business type comes under the list of high risk merchants then also there is no need to give alarms for this particular information and you are able to process all your credit card transactions normally. Some banks may need additional background information or some kind of business financial details in order to accept your credit card for processing. Some of these banks may charge higher processing rates whereas others may ask users for some reserve deposits in their account. Once you become able to create a positive feedback about your account then these banks will again classify you as low risk merchant. To verify this state of positive history of accounts, banks will monitor your transactions and charge backs for six months to one year of span and then will identify you as blow risk merchant if everything goes perfect.
One of the most important things that you have to understand about high risk factor is that your risk categorization depends upon regulations and guidelines of risk department at your area. In case if guidelines are little relaxed then you can easily avail a merchant account but if there are lots of restrictions about it then you have to take care at every step. Visit North American Bancard Agent Program to get more details on becoming a credit card processing ISO.
List of high risk business types
This list not even includes all organizations or industries but it covers most of them:
- 1 to 800 type of chat websites.
- Airlines and airplane charters.
- All pornographic merchants that are running adult websites, dating services, book stores for adults as well as escort services.
- Google stores, yahoo as well as Amazon.
- Annual contractors as well as antiques.
- Automotive brokers and auctions.
- Brokering as well as bankruptcy attorneys.
- Casinos, gaming, gambling and calling cards.
- Various check cashing services.
- E-cigarette sellers.
- Collection agencies, reward point programs and coupon services.
- Repair of debt and credit, counselling and protection of credits as well as debt collection.
- Direct selling and discount health type medical programs.
- eBay stores and eBooks.
- Various electronic products.
- Exporting services as well as fantasy websites for sports.
- Financial planning, advising as well as strategy.
- Horoscopes, psychic services and astrology websites.
- International merchants and import export of cargo.
- Investment books, firms and strategies.
- Lotteries, life coaching and lawyer referral type services.
- Magazine sales as well as subscriptions.
- Membership type organisations, modelling agencies and various multi currencies.
- Multi level marketing services.
- Downloading of software, movies and music that come under copyright act.
- Establishment services as well as in bound or outbound based telemarketing services.
- Replica sales for handbags, sunglasses, wallets as well as watches.
- SEO services and various social networking website like MySpace, Twitter and facebook.
- Talent, Telecom and Telephone companies.
- Third party processing as well as time share type advertisements.
- Tour and travel services including vacation planners.
- Sales of vitamins and supplements that may include various diet pills, pharmacy, health supplements and prescription pills.
- Voip services and various companies offering extended warranty services.
- All types of weapons like ammo, stun guns, knives and simple guns etc.
You might be aware of the complicated structure of payment processing industries; one must take care for every processing as it must ensure trustworthy results. There are no difficulties associated with high risk merchant account processing but all you need to do it practice for landing back on low risk platform so that your credit card processing rates can be lowered. Market is full of competitors and if you are high risk type merchant then you have to pay more attention towards your overall growth. Various guidelines are decided by different regulatory authorities and they must be followed carefully to avail easy processing services for credit cards. As most of business types come under this category so better idea is to have proper control over your business cash backs so that banks can monitor positive outcomes from your business. Once you are able to control your cash backs then it becomes easier to process all transactions easily. The processing rates for high risk type credit cards are more and for every transaction owners suffer some loss for their profit share so it is good to maintain proper track of your business in order to get proper flow of outcomes so that your business can be soon categorized as low risk type. Various service providers are available in market for providing easy account opening services to high risk type business owners; you can check details online and avail best facilities for all your finances. Shaw Merchant Group service providers are well known for their trustworthy services as they are dealing in same area from so many years. Remember that such type of account are not allowed for sharing and if bank recognize you as an defaulter then your status will get terminated immediately.