A person having a high risk account about to swipe his credit card on a card reader

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.



We Offer Credit Card Processing for Hard to Approve Merchants

Our high risk merchant services can be set up quickly, so your business doesn’t skip a beat.


Ready to take your business to the next level?

Reach out to us today and get a complimentary business review and consultation.