If you're doing business in an industry that's considered high risk, you may have difficulty getting approved for a standard merchant account. Banks and other financial institutions see companies in high-risk sectors as more likely to chargeback or default on payments.
Fortunately, there are plenty of high-risk merchant account providers out there who are willing to work with businesses in these industries. In most cases, you'll get the same features and benefits as you would with a standard merchant account, including the ability to accept credit and debit card payments from your customers.
However, there are a few things to keep in mind if you're considering a high-risk merchant account. First of all, you can expect to pay higher fees than you would with a standard version, and this is because high-risk merchant account providers understand a greater risk of chargebacks and defaults in these industries.
Another thing to remember is that you'll likely have to provide more documentation to get approved for a high-risk merchant account, and this is again because of the increased risk involved. Be prepared to give business licenses, tax documents, and proof of insurance.
Why do You Need a High-Risk Payment Processor?
When it comes to payment processing, there are many options out there. But not all processors are created equal. If your business is considered high risk, you may have a hard time finding a processor willing to work with you, and that's where high-risk processors come in.
High-risk processors are specially equipped to handle the unique needs of high-risk businesses. If you're not sure whether or not a high-risk processor is suitable for your business, here are some signs to look for:
1. Traditional processors have declined you.
If traditional processors have declined you, it's a good sign that you should consider working with a high-risk processor. High-risk processors are used to working with businesses where traditional processors have declined.
2. You're in a high-risk industry.
Specific industries are considered high risks, such as the adult industry, the gambling industry, and the CBD industry. If you're in one of these industries, it's a good sign that you should consider working with a high-risk processor.
3. You process a lot of transactions.
If you process many transactions, you may be considered high risk. Businesses that process many transactions are more likely to have chargebacks, and high-risk processors are equipped to handle interactions with a high volume of transactions.
4. You have a high chargeback rate.
You may be considered high risk if you have a high chargeback rate. Businesses with a high chargeback rate are more likely to have their accounts frozen or terminated by traditional processors. High-risk processors are used to working with companies with a high chargeback rate.
5. You're a new business.
If you're a new business, you may be considered high risk. That's because new companies are more likely to have financial problems. High-risk processors are used to working with new businesses and can help you get started on the right foot.
5 Benefits Of High-risk Payment Processor
There are many benefits of using a high-risk payment processor, especially for businesses that operate in industries considered high risk. Some of the main benefits include:
1. Increased Protection from Fraudulent Chargebacks
When you use a high-risk payment processor, you will be able to increase the protection you have against fraudulent chargebacks. This is because these processors offer enhanced security features that can help prevent fraudsters from accessing your account and stealing your money.
2. Faster Approvals and Funding Times
Another significant benefit of using a high-risk payment processor is that you will usually be able to get approvals and funding times that are much faster than what you would experience with a traditional bank. This is because these processors understand the unique needs of high-risk businesses and can offer solutions that can meet their specific requirements.
3. Improved Cash Flow Management
Another benefit of using a high-risk payment processor is that it can help you to manage your cash flow better. This is because these processors often offer flexible terms that can allow you to make smaller, more frequent payments, which can help to improve your overall cash flow management.
4. Access to Alternative Funding Sources
When you use a high-risk payment processor, you will also usually access alternative funding sources. This means that if you are having difficulty getting approved for traditional financing, you may still be able to get the funding you need through one of these processors.
5. Enhanced Customer Service
Finally, another benefit of using a high-risk payment processor is that you will usually enjoy enhanced customer service. These processors often have dedicated teams that can help you with any questions or concerns you may have about your account.
If you operate a business in an industry that is considered high risk, then using a high-risk payment processor can offer you many essential benefits. These processors can help you increase the protection you have against fraud, improve your cash flow management, and even provide you with access to alternative funding sources. If you are looking for a way to take your business to the next level, then using a high-risk payment processor may be the right solution for you.
Kryptova is the best solution for high-risk merchant accounts.
Kryptova is the best solution for high-risk merchant accounts that need to accept both crypto and credit card payments. Our robust, full-scale payment methods include a single integration to get a credit card and crypto processing.
Our experience with high-risk merchants means that we know how to handle your account to minimize risk and maximize success. Contact us today to learn more about what we can do for you. We can help you get the most out of your high-risk merchant account.