3 Benefits of Every Merchant Having A High-Risk Account

There are businesses out there that have higher risks of scam through stolen credit cards.

Not all buyers are out to deceive the sellers but are there to try spreading that idea to other primary merchant account processors and providers. These businesses are high risk and are in need of a high risk account.

High-risk businesses might also face issues of acceptance. Most account providers do not intend to engage with high-risk products and services because of the financial risk.

However, having a high-risk merchant account can enable a business to maneuver around most account processors. They can do it by providing similar services for processing payments using cards at very reasonable rates.

Aside from that, high-risk merchant accounts also have some benefits of its own. Here are three of the most common benefits that businesses get when acquiring a high-risk merchant account.


3 Benefits Of Having A High Risk Account


1) Minor Difficulties Whenever Chargebacks Occur

Contrary to popular belief, having a low-risk merchant account also has its own risk: an overload of chargebacks can result in the termination of an account, which is a major concern for any business. Because the merchant account is high-risk, the providing firm will be aware of any potential danger that might occur beforehand. When someone uses a fraudulent card, or when a chargeback happens, the loss of an account won’t affect the business. The account provider will have the business taking its preventive measures instead to protect it against any form of fraud.

For high-risk merchant accounts, providers will commonly require a business to hold a reserve fund to fill in and prevent chargebacks from affecting a business industry’s overall progress. The percentage of average monthly sales can range from five to 10 percent. What the provider requires as a reserve amount is purely dependent on various outlining factors when the account is opened. It is also a requirement for the account to contain a specific amount of money for a particular period.

Though many consider these measures to be a problem for most businesses, they are still necessary for high-risk merchant accounts.


2) Elevated Security Standards

While getting rid of every deceptive credit card is impossible, it is attainable to catch them using indicators and several other detection strategies.

Most high-risk merchant accounts utilize a trustworthy set of strategies for detection in the transaction phase. These sets of processes will determine whether or not the card is genuine. These methods can also defend the business, the account provider, and the card’s owner from fraud. The fewer deceitful transactions taking place, the better your business will be. The single indication that the customer notices will be card processing taking slightly longer than a standard operation.


3) Avenue to Bigger Market Opportunities

Applying for a high-risk merchant account also grants you the opportunity to establish and create an online sales website. Your website will serve as a digital catalog for offering and promoting products to any potential customer who has access to the internet. Without a site, a particular business will only limit itself to a local market, unnecessarily preventing growth and revenue. Whether it’s a product sold, or a service acquired, it really doesn’t matter at all. Obtaining credit card processing will generate more customers who prefer to conveniently and safely secure their credit/debit cards.


Final Thoughts

While you will certainly face some levels of risk, scam, and fraud when accepting cards, you can definitely eradicate some of the risks when using a legitimate merchant services provider. All aspects involved, from the business, the merchant, to the customer will benefit in the long run. Always remember to choose to make wiser decisions.


Share Us


Recent Articles

Discover the Best High-Risk Merchant Solution

Applying is easy. Find out why we have a 95% approval rate. 

Young male florist working in flower shop

What does a small business need to know about interchange fees?

Interchange fees are an essential aspect of the payment ecosystem that small businesses need to understand. When a customer makes a purchase using a credit or debit card, these fees ensure the smooth operation of the payment network and compensate the issuing bank for the services they provide. While they may seem like an added cost for merchants, they play a vital role in enabling businesses to accept electronic payments, which are convenient for customers and help drive sales. For small businesses, it's crucial to be aware of the cost structure associated with interchange fees. By understanding the factors that influence these fees, such as card type, transaction value, and payment network, businesses can better manage their pricing strategies and account for these costs in their overall profitability calculations. Negotiation and cost comparison are key aspects when choosing a payment processor or acquiring bank. Small businesses should seek competitive pricing by exploring different options and evaluating the complete fee structure offered by various service providers. While negotiating directly with payment networks may not be feasible for small businesses, working with the right partners can help secure more favorable terms. Moreover, it's essential for small businesses to optimize their payment processing systems to reduce interchange fees. Embracing technologies like EMV chip cards and contactless payments can lead to lower fees and enhanced transaction security. By staying informed about industry changes, businesses can adapt their payment strategies accordingly and take advantage of any potential cost-saving opportunities. Ultimately, while interchange fees are an important consideration, it's equally crucial for small businesses to provide customers with seamless payment experiences. By striking the right balance between managing costs and offering convenient payment options, businesses can foster customer loyalty and drive growth in an increasingly digital economy
Beautiful business woman with white hair checks time on the watch

What is a Reserve on a Merchant Account

The purpose of a reserve on a merchant account is to provide an additional layer of financial protection for both the merchant and the payment processor or acquiring bank.
Businessman using laptop computer in office. Happy middle aged man, entrepreneur, small business

Finding The Right Payment Gateway for your Business

If you operate a business in a high-risk industry, getting a high-risk payment gateway through an expert like Blue Wave Merchant Solutions is crucial to your success. Payment gateway experts offer a range of benefits, including expertise in high-risk industries, access to multiple payment options, enhanced security and fraud protection, lower fees and rates, faster payment processing, regulatory compliance, and dedicated support. By working with a Blue Wave Merchant Solutions, you can ensure that your payment processing system is optimized for success and help your business thrive in a high-risk industry.
Serious middle aged woman using smartphone for credit card transactions

Seven Steps That Businesses Can Take To Reduce Chargebacks

Blue Wave Merchant Solutions works with businesses to implement the best practices for chargeback prevention, such as using fraud prevention measures, monitoring chargeback rates, and providing excellent customer service. The company also offers chargeback dispute management and resolution services, which can help businesses resolve chargeback disputes quickly and efficiently.
Team of business colleagues meeting while walking in a modern city to go travelling. Business travel

10 Benefits Travel Merchants Have When Using Our services

Using a high-risk payment processing service as a travel merchant can offer numerous benefits, from high approval rates to compliance and competitive rates. And with a touch of humor, these benefits can make your business and your customers smile brighter than a Hawaiian sunset. Contact Blue Wave today for more payment processing details. 866-340-3898.

Our Application Process is Quick and Easy

Find out why we have a 95% approval rate.

Your information is safe, We take your privacy seriously.