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High Risk Merchant Accounts and Card Processing

Are you looking for a specialized High-Risk Merchant Account?

One of the most important things in payment gateway and getting credit card processing for a high risk merchant is to find the right match, but first of it would be good to ask yourself this: Am I high risk? If you can’t answer that, here, let us help you figure it out. Are you in one of these business verticals:

Even if you can’t find your industry on our list, we can still assist you. So reach out to us today!
If you are, you will most likely be labelled a high risk merchant, however, this does not mean that you can’t get credit card processing, it just means that your processing fees will be set a little higher and in most cases with a hold on your payments plus a rolling reserve. This might sound terrifying altogether but with high risk, there comes a risk on both sides, so as long as you treat your mids right, they will do the same back. PurePay believes that all business deserves to thrive and prosper.

High Risk Merchant Account & Payment Processing

High-Risk Merchant Account

From one country to another, more people and businesses continue to embrace digital payments. More businesses are actively on the lookout for cost-effective payment processing solutions. In fact, statistics show that only about 10% of consumers still prefer to make payments with cash. 

Admittedly, most of the payment service providers today serve businesses across diverse verticals. However, specific businesses are considered high-risk. As a result, most payment processing providers often decline processing payments that involve high-risk industries, owing to the inherent risks of chargebacks or fraud. 

Before investing in any business, one of the most significant concerns is the potential risks. Is your business in a high-risk industry? The truth is that you may find it incredibly difficult to process your payments through a dependable payment processing merchant. And this could be a highly frustrating experience for you. Who determines the status of a business as high risk? 

In this piece, we’ll take a deep dive into the high merchant payment industry and discuss the importance of a solid payment processing provider for this promising industry. We’ll also take a deep look into the reasons behind high-risk considerations by banks and payment processing companies while helping you understand how to be better prepared to find the right payment processing partner for your business needs. But before then, let’s briefly examine the payment industry and its market size.

What Is High-Risk Payment?

Did you just start your first online e-commerce marketplace? Or you’ve just started growing your business into a well-established e-commerce business? If so, you may encounter the term “high-risk merchant account.” What does this mean? It simply means that your business is in a category that payment processors, banks, and card networks are skeptical about serving. 

If your business is characterized or labeled as high-risk, you would require a high-risk merchant account to accept payments through debit or credit cards. High-risk businesses are prone to a perceived risk of financial loss resulting from issues related to chargebacks, fraud, etc. Although, there are no universal frameworks or authority that determines the risk factors that affect a business, there are standards and procedures peculiar to every bank or payment processing provider, system, or solution. 

While some payment processing platforms expressly state the kind of industries they work with and the business transactions they support, others typically examine the details of each transaction to ascertain the associated risks. This, ultimately, depends on the internal criteria of each payment service provider and its mechanisms of risk management. 

Now that you’ve got to know about high-risk payments, it’s high time you learn about high-risk merchant accounts.

What is a High-Risk Merchant Account?

Simply put, high-risk merchant accounts are payment processing systems or solutions dedicated to serving businesses that have been labeled or characterized as high-risk. As mentioned earlier, high-risk businesses are businesses with a perceived risk of financial loss. For instance, some businesses in industries such as firearms, online gambling, cannabis, or cryptocurrency may have frustrating experiences finding payment processors or service providers. 

This is because many providers are highly skeptical about serving subscription-based businesses or businesses that sell internationally. If you run a high-risk business, the only way to navigate these hurdles as a high-risk business to partner with a high-risk payment processing service provider.

High-Risk Merchant Accounts vs. Regular Accounts: The Difference

If you’re labeled as a high-risk business, it would seem quite frustrating and daunting to process your payment – many processors will turn down your payment. Do not fret. You’ll find a great payment processor with the proper measures in place to mitigate these risks. PurePayPayments is your go-to payment service provider. 

High-risk merchant accounts differ from regular merchant accounts in several ways. Let’s take a brief dive into some of these key differentiators.

Longer Application Process 

When applying for a standard or regular account for your small business, approval is guaranteed in a matter of minutes or even seconds. However, this isn’t the case with high-risk merchant accounts. Applicants for high-risk merchant accounts are subjected to a detailed review of the application documents. 

This review covers the cross-examination of the risk profiles and studying the pattern of finances, business processing history, personal credit history, and other vital documents. This is to ensure that the applicant is free from bad credit or poor levels of partnerships or business history, thus ensuring that approval is granted to businesses with genuine and authentic documents and profiles.

Higher Payment Processing Fees

Payment processing fees for a standard small business are competitive as it stands at 0.3% above the interchange rate. On the other hand, a high-risk merchant account has a processing fee of 1.5% above the interchange rate. 

With these rates, standard small businesses will pay $1.16 for a $50 charge, while a payment of $1.76 will be levied on a $50 transaction for a high-risk merchant account. Although, interchange fees vary significantly from one payment company to another, high-risk merchant account generally incurs high payment processing fees.

Cash Reserve Requirements

When comparing standard accounts with a high-risk merchant accounts, one of the significant differences is the cash reserve requirements. Usually, some payment processing service providers hedge specific amounts of cash for a business. The threshold of this reserve can be baked into the payment process using some popular methods, including capped reserve, upfront reserve, and rolling reserve.

Capped Reserve: This is where the payment processing service provider holds a specific amount of processed payment until the total balance attains a predetermined level. In this case, contributions based on transaction stops, leaving the reserve to remain until it is needed. 

Upfront Reserve: This form of cash reserve requirement involves a specific amount being sent to the payment processing service provider from the merchant upfront. Sometimes, all completed transactions are withheld until the specified amount is received. 

Rolling Reserve: In this case, a payment processing service provider sets aside a specific percentage of every completed transaction, which could be as high as 10%. For instance, if you have a 6-month rolling agreement, you’ll receive the balance in July if your agreement starts in January. And then, in January, you’ll receive another balance.

Higher Chargeback Fees

There might be some situations where businesses are required to refund their customers. This refund process requires businesses to run chargeback fees to their payment processing service providers. Businesses with high cases of chargebacks often require higher fees than offset the risks associated with excessive chargebacks. The rates are usually between $20 and $100 per chargeback.

Volume Caps In Credit Card Processing

There are certain limits you should not cross when processing transactions, and one of them is not to cross the limits. You may be barred from processing further transactions if your sales volume exceeds a specified limit. For most processors, there’s a presumption that there may be compounded risk, especially when dealing with high-volume transactions.

Additional Technical Requirements

With a high-risk merchant account, you may be subjected to additional technical requirements, depending on your business type. For instance, if you are in an age-specific business, you may be required to utilize additional technical tools. This ensures that you’re selling to the right target audience, not underage customers. Without fulfilling these requirements, your high-risk merchant account application may not be approved.

Benefits of Using Specialized High-Risk Merchant Account

You’ve got a small business that is prone to chargebacks? Or you’re operating a business labeled as high-risk? It’s time to choose a trusted, dependable, and reliable high-risk merchant service provider like PurePayPayments. Here are some benefits of using a specialized high-risk merchant service provider.

Global Coverage

With a high-risk merchant account, businesses are offered unlimited access to the global market. Impliedly, your customers from all parts of the world can transact with your business and numerous currencies. Thus, you’ll be able to provide a platform where your customers can pay for your goods and services in your home currency. Thus, making it easy and hassle-free for customers to access your products and services. Keep in mind that not all high-risk merchant service providers offer this service. Therefore, it is crucial to choose a high-risk merchant account provider. PurePayPayments is your perfect go-to partner when it comes to helping you set up a high-risk merchant account with utmost ease.

Chargeback Protection

There are several reasons to use a specialized high-risk merchant account provider, and one of such reasons is its chargeback protection. Credit and debit cards are the primary means of exchange of payment for goods and services. As a result, customers are much more dependent on these cards. With a chargeback protection feature, PurePayPayments will skyrocket your business to an enviable position. 

With us, you’ll enjoy smooth, safe, and secure services cutting across debit and credit card, mobile, and e-wallet payments, which will significantly boost your business’s productivity. 

Studies have found that customers enjoy the flexibility of spending more money whenever they make payments with debit or credit cards instead of cash. Therefore, partnering with us to open a high-risk merchant account with chargeback protection is a surefire way to bring in more money for your business.

Security made for high-risk industries

When you choose a reputable and trusted specialized high-risk merchant account service provider like PurePayPayments, you won’t need to bother about the safety and security of your customer’s card details. Of course, financial-related crimes are on the rise, and there’s a high exposure to fraud. 

However, PurePayPayments is a high-risk merchant account provider that guarantees the safety, privacy, and security of customers’ details. Our system has built-in advanced technology to detect fraud and scams quickly and easily. That way, we improve customer satisfaction by protecting customers’ personal and financial information.

Advanced Technology Integration

The world of high-risk payment processing has continually witnessed the use of new and advanced technological systems and solutions. At PurePayPayments, we work with our clients to choose high-risk merchant accounts with the best software products, platforms, and solutions for their needs. More so, we also help our customers combine their websites with e-commerce platforms, thus reaching a wide range of audience. This, in turn, translates to more customers having access to your offer and more purchases, ultimately growing your business.

Merchant Underwriting Procedure

For businesses that want to accept consumer payments, having a payment processing partner and a high-risk merchant account is essential. Regardless, the first phase is to pass the merchant underwriting process.

Passing the merchant underwriting process is a unique approach to help the high-risk merchant and the payment processing partner avoid errors or mistakes. Although, the merchant underwriting screening procedure is similar to all businesses, high-risk merchant accounts are subjected to further scrutiny.

Therefore, it is essential to partner with a high-risk merchant account provider like PurePayPayments. We’ll run a background check to ensure that the merchant meets your financial and professional commitment required to keep their company viable. As mentioned earlier, ensuring the safety of your customer’s information and chargeback protection are some of the critical components of this approach.

How to Get Approved for a High-risk Merchant Account

Getting approved for a high-risk merchant account is possible when you simply fill out the application and supply the required details. Of course, high-risk merchant accounts are usually exposed to fraud and scam-related issues, and a lot of documents might be required. Still, PurePayPayments, a reliable service provider, will help you with the needed assistance during the application process. Businesses applying for a high-risk merchant account require documents such as; 

· Government-issued photo identification.
· Articles of incorporation (if applicable).
· Three months of business bank account statements
· A voided company cheque.
· Three months of valid processing statements (if applicable)

Other documents that may be required include;

· Organizational structure chart (shareholders)
· Test user credentials with premium access to the platform
· License number, including the name of the license-issuing organization (if your business requires a license)
· Shareholders certificate
· Incorporation certificate and shareholder certificate of other firms (if applicable)

If you choose PurePayPayments as your service provider, rest assured that you’ll have a high-risk merchant account that suits your business needs. Once we are able to get your business approved by the acquiring bank, you can start processing your payments online or via mobile without hassles.

Choosing the Best High-Risk Payment Processing Company

Like the similarities and differences in high-risk merchant accounts, high-risk payment processing providers aren’t equal, and they are most suited to every business profile. Besides, many high-risk payment processors often serve specific industry verticals or business models, while others prefer to work with all kinds of industries or businesses.

 When it comes to getting the significant benefits associated with a high-risk merchant account, it is essential to work with the right processing company. 

PurePayPayments is the only payment provider that ticks all the boxes. With decades of experience in the payment processing industry, PurePayPayments is committed to helping clients and customers find the right high-risk merchant accounts with the right features that meet their needs. Our system is equipped with the latest cutting-edge technology to help businesses make their journey to high-risk payment processing safe, easy, smooth, and hassle-free.

Why is PurePayPayments the Best High-Risk Merchant Account Provider?

Are you on the lookout for the best high-risk merchant account provider? Look no further. PurePayPayments is the perfect go-to service provider for your company. We are a B2B merchant payment processing platform providing high-risk payment processing solutions to companies and businesses, thus helping them attain their greatest potential. With our award-winning payment gateway, all your needs are fully covered.

Our Unique Features

World Class Support

Our support teams at PurePayPayments are highly skilled, knowledgeable, and experienced in helping companies and businesses with high-risk payment processing tasks. From solving your account processing issues to integration support, count on us to take complete control of your high-risk merchant account payment processing journey.

Safety & Protection

At PurePayPayments, we have the requisite industry security certifications, and our payment processing company is equipped to help you get them as well. We do not only protect you from chargebacks, fraud, or scams, but we also protect your customers and clients. Our strategic fraud prevention tool and chargeback mitigation tools are enough to guarantee safe and secure transactions for you and your customers.

Market Leadership

At PurePayPayments, we know the hurdles associated with choosing a high-risk merchant account and other factors, such as onboarding and customization. Hence, choosing us as your payment processing partner will save not only your time but your money too.

Custom Integration

Many times, integration could be a bottleneck. Therefore, it is essential to partner with a payment processing provider with the proper custom integration to troubleshoot any hang-ups quickly and efficiently along the way. PurePayPayments remains your best bet.

No Hidden Fees

With PurePayPayments, you will always be aware of the fees upfront. Our website features the monthly maintenance costs of your high-risk credit card processing and merchant account. This helps us boost our reputation as a transparent and accountable payment processing service provider.

Need a High-Risk Merchant Account Solution? Get a free quote now

PurePayment is a full-service merchant account company providing clients and customers with the best high-risk payment and merchant services. From local payment to credit card processing, we understand your business problems, and we’ll offer a full-scale and detailed solution to your problems, sticking with you every step of the way. Choose us as the best solution to guarantee you safe, smooth, and secure high-risk credit card processing specifically designed to meet your unique business needs. To get started,

Detailed requirements

  • Incorporation Certificate.
  • Memorandum & Articles of Incorporation.
  • Color Passport for UBO / Shareholders / Directors.
  • Office Lease Agreement signed by both parties. Or Rental Invoice under company’s name – not older than 90 days from the date of application.
  • Business Bank Statement under company’s name and present address, showing IBAN and SWIFT – not older than 90 days from the date of application and for the last three concecutive months.
  • If Processing History is available for latest 3-6 months from the date of application – under company’s name, showing processor’s name/logo, sales, refunds, and chargebacks for each month separately.
  • If Processing History is unavailable then detailed business plan and cashflow forecast for minimum of one fiscal year. Get it here
  • Utility Bill [electricity / gas / water / rental / tax bill] from UBO / Shareholders / Directors under their name and present address – not older than 90 days from the date of application.
  • Proof of domain under company’s name, showing applying URL and date of domain renewal / expiry – preferably domain purchase receipt.
  • Lab tests of each products plus ingredients on every product page.
  • European signatory is a requirement for this vertical, therefore KYC from European signatory is needed.
  • Supplier contract signed by both parties, or invoice not older than 90 days from the date of application, in case supplier is used.

Are you a high risk merchant struggling with the banks in order to obtain High Risk Merchant Accounts? PurePay has the knowledge and bank connections to turn those declines into approved merchant accounts.

This is why you need to match your project with the right banks so you can only worry about consolidating your business on the market, creating solid flows of revenue, and know that you’re in a safe place. Banks decline high-risk merchants daily and they know whom they want to work or not, so a perfect setup and KYC will make sure that you’re on the approval side of things.
Mainly what makes a high risk merchant account is the combination and possibility of chargebacks, bankruptcy and not being able to cover your debt if closed. With a high risk payment processor such as PurePay, you can make sure we not only submit your case where you have a great chance of approval but also get a bank that believes in you, like us

At PurePay, we work for you and we can help you get mids in Europe, North America, South America, Asia and more. So we are ready to help you get your merchant accounts and start processing credit cards so you can reach your goals and grow stronger than ever.

We are known for our great service, happy faces, and for doing our job when others are sleeping. PurePay offers this:

Help Tools:

We work from the point of view that we don’t work for you, we work with you, so you can rely on us for High risk card processing in the UK. With us, service is not just a word, it is a lifestyle and we make sure to live it!

What sets High-Risk Merchants aside to Low Risk is chargebacks, if you are in a business which has proven more likely to receive chargebacks, banks will label you a high risk and add more terms and higher cost to your terms. The best way to ensure that you get fast approvals is to make sure you have all the KYC ready prior to applying because every submission to a bank goes through risk teams and the sooner they have everything, the faster they can approve. So let’s get started!