High Risk Merchant Accounts

A High Risk Merchant Account is typically required for certain business types, that are deemed “Undesirable” by the card associations. These businesses include a whole host of different business types, including the adult industry, travel industry, and many others that we will cover below. There are various reasons why these businesses are “Undesirable”, but for the most part the “Risk Of Chargeback” seems to be the underlying factor, as majority of these High Risk Business Types have a history of getting a high percentage of chargebacks vs other business types.

Chargeback is when a customer gets a particular charge “Reversed”, by complaining about the transaction with their credit card issuing bank. Several complaints can get any merchant account shut down, sometimes shut down forever.

Here are a few common types of “High Risk Merchant Types”:

  • Adult Industry
  • Bail Bondsmen
  • Coin Shops
  • Escort Service
  • High Ticket Sales
  • Gun Shops
  • Online Pharmacy
  • Ticket Sales
  • Time Share Sales
  • Travel Related
  • Water Purifiers

The first place to start when looking for a High Risk Merchant Account would be with a company that both specializes in traditional and high risk accounts. Note, different banks will accept different levels of risk, so you may have a chance getting a traditional merchant account, without the added cost of associated with high risk.

If that fails and you are told that a traditional merchant account is out of the question, you’ll need to proceed with the “High Risk” application. Keep in mind that you will need several documents and may have to jump through some hoops, but with a little perseverance and a lot of patients, you can be successful in getting approved to accept credit cards.

Things To Expect:

  • High Risk Application Fee
  • Potential Association Fee
  • Financial Statements
  • Business License
  • Articles Of Incorporation
  • Principal Statements
  • Marketing Materials

In closing, accepting credit cards in certain business types can seem impossible at times, but if you partner with an industry specialist, your odds of success are greatly increased. Keep in mind that your success is not guaranteed, as certain factors, such as lack of credit, lack of financial strength, or previous terminations of merchant accounts, can stop you from getting approved.

Good Luck.

1st National Processing may be able to assist you in obtaining a High Risk Merchant Account for your business.

Travel Merchant Accounts – Your Round Trip Ticket For More Sales

In the world of e-commerce, the success of your business will depend largely on the credit card processing service that you give your customers. The fast changing worlds of trade is becoming more and more revolutionary that you can now have your dinner delivered through online and paying through your credit card. In a few minutes, your dinner is served, you enjoy hot food and you never left your couch. Absolute bliss.

Now, as an online businessman, you must be able to cater to your customers with much high quality and security as well. When it comes to the online travel agencies, you will soon find out that there are only a few merchant account providers catering to this high risk business.

Online travel agencies today need a way to process payments online among anything else since travel agencies are believed to be a high risk commercial enterprise by many experts.

Being one of the businesses in the travel industry, getting a merchant account is quite difficult. With a possible high charge back, it makes it hard and complicated to accept credit cards because of the long term booking. When you think about internet payment processing that would suit your needs, it is very important to have the information and understand the types of merchant services. Every company has their own specifications of requirements and they usually offer a range of methods in accepting credit cards.

Choosing the right kind of merchant services accounts helps businesses in increasing their sales. Being a part of the online business world, your online travel business successes will largely depend on the payment processing service that will be provided to your customers, whether it’s some kind of high risk merchant or a travel merchant.

Travel merchant account providers offer merchant account holders with a facility for high risk credit card processing together with some tools to be used for online credit processing services that will help the customers to make it easier for merchants to accept credit card payments. This will boost sales and profit. Doing a thorough research is the ultimate key in choosing the most reliable credit card processing. It keeps things smooth and definitely helps in increasing your customers.

Internet Merchant Accounts, Essential to My Online Business?

Do I really need an Internet Merchant Account?

If you want to do business online, first of all you will need a web hosting company. A web business normally includes product catalogs, a shopping cart, and payment processing. Unlike other ecommerce needs, payment processing is normally not included with ecommerce web hosting. You will need to use the services of a credit card processing company to provide you with an Internet merchant account that allows buyers to use their credit cards to pay online for the goods or services you are offering.

I already have a Retail Account, isn’t that enough?

More and more people are using their credit cards online so this means an extra source of revenue for retail businesses already established. An Internet merchant account is a financial tool specially design to process transactions on the Internet. Even if you have other types of processing solutions, your online shop requires one of these to take credit cards on your web site. In short: If you want to sell on the Internet and compete for the online market, your will need to accept credit cards. To accept credit cards, you need to get an Internet merchant account.

How do Internet Merchant Accounts work?

Once an online business owner (also known as an Internet merchant or web merchant) signs up with a provider (Internet credit card processor), it collects the credit or debit card details through an online payment form which is typically hosted on the processor’s secure servers. This form sends data over to the processor’s payment gateway (credit card processing software) so it will send back a “success” or “decline” message. Funds are taken from a cardholder’s bank account and deposited in the merchant account and then wired to the merchant’s business bank account. In other words, Internet merchant accounts are like safety boxes where the credit card processor keeps the money it gets from credit card companies before deducting its processing fees and sending the payment to the corresponding online merchant.

How do I choose the right Internet Merchant Account Provider?

There are three key factors to consider when looking for the right ecommerce processing company:

1) Solid experience: The needs for online businesses are different from others. These are consider high risk accounts because the cardholder is not present in front of the seller. You want a provider that has the experience to help you deal with possible fraud and help you run your ecommerce business successfully.

2) Expert support: A knowledgeable & easily accessible technical staff, able to promptly resolve minor and major problems, can make the difference between making sales or losing valuable online clients.

3) Top customer service: You need processing experts who are courteous and prompt in dealing with your own questions and concerns.

Are Internet Merchant Accounts expensive?

Because the risk involved is higher than face-to-face transactions, these have higher rates than retail accounts. Fortunately, because of increased competition in the past years, many fees and costs have been significantly reduced. Now is the best time to get an affordable merchant account for your online business.