When it comes to establishing a merchant account, there are some times in which business types, known as high risk businesses, pose concern for the merchant account provider.
Businesses are considered to be high risk when they have a higher likelihood of transaction issues such as: chargebacks, fraud, returns, and more. While any business has the potential to fall into a high risk standing, there are a few types of business that most often fall in that realm.
Having a merchant account for your high risk business can sometimes mean higher merchant fees and other penalties, just for the nature of your business. However, here at Bank of Merchant, we assure you that we will never penalize you for the kind of business you run! We work hard to ensure that all our customers have the perfect payment processing system in place to leave them and their customers satisfied.
Common High Risk Businesses
High Volume Business
The first major high risk business type is a business with high volume. This means you may have a lot of inventory to run, orders coming in, customers to assist, which naturally can lead to a higher number of transactional issues. That is what pushes high volume businesses into the high risk category. Rather than hurt you for this, Bank of Merchant wants to help you! We offer high speed payment processing systems that can function with high volumes, allow for recurring payments, and allow for transactions without the card present. Plus, our offers come with fraud protection and address verification, making the merchant account more safe and secure!
Telemarking
Telemarketing is widely considered a high risk business type as there is often a gap of at least a few days, oftentimes even longer, between the sale transaction over the phone and the delivery of the product/completion of the service. Additionally, some customers lack trust in a telemarking transaction and may try to cancel it once it has begun. For this reason, a safe merchant account is extremely important. It will provide more trust to your customers as well as keep your business protected in the long run. For our telemarketing clients, we prioritize fraud protection, chargeback prevention, card-not-present transactions, and a reliable ACH network.
Adult Entertainment
The adult entertainment industry is considered high risk and taboo in more ways than one. However, we here at Bank of Merchant would never dare to judge you for your business practices! Nonetheless, there are some tough roads to navigate when it comes to a merchant account for an adult industry business. There are legal factors, such as age and content matter, as well as financial factors, such as if the business runs on a subscription basis, one-time purchases, or more. Furthermore, it is a field where people often request refunds due to the taboo of purchasing something in this industry. We assure our clients that even with this high risk business, they will get a merchant account with the best fraud protection, chargeback prevention, and more!
Travel
The travel industry is a tough one to navigate. While it is a fairly secure business, as the demand for travel and tourism tends to stay quite high, it is still hard as trips and vacations often are cancelled or altered last minute, which can harm the businesses behind the getaways. The amount of time between the booking and the actual travel plans is often quite high, leading to many possible issues for the merchant, but we always have their backs. We build strong merchant accounts that allow our customers to feel safe to allow their customers to make purchases. We focus on chargeback prevention, safe and secure transaction processing, and address verification for our travel industry clients!
Collection Agencies
When it comes to collection agencies, scams are the biggest part of what makes them high risk. People have very little trust in anything contacting them stating they are a collection agency because there are countless known scams out there that prey on people to send them money when they claim to be a collection agency. That is why we put forth safe and secure transactions as our number priority for our collection agency clients. We want to give them comfort and reliability that they can then pass along to their clients to also feel safe and secure when making a payment. We also do not want our client to be scammed either, which is why we provide strong fraud protection as well.
Tobacco
Even though the sale of cigarettes has gone down in the U.S., tobacco is still a booming business. Items such as vapes and electronic cigarettes are still massively popular, both of which keep the industry booming. Nonetheless, even with the success of the industry, many view the tobacco industry as sketchy and concerning. Furthermore, there are so many ways to buy and sell tobacco now (with it even being legal to sell in grocery stores and online in several states), that it can be easy for consumers to commit fraud or pursue chargebacks. Because of this, we want our clients to feel comfortable and covered with a merchant account with us, which means having chargeback prevention, fraud protection, and safe on-the-go and card-not-present transactions.
Credit Repair
Having bad credit in our economy can halt you from doing many things. It can hurt your chances of purchasing homes, cars, and more. That’s why credit repair companies exist, in order to help those dealing with bad credit. However, being a credit repair company comes with risks that mark it a high risk business. This is in large part due to the fact that other merchant account providers deem customers of credit repair companies unreliable, leading to the company itself being considered high risk. But we here at Bank of Merchant do not feel that way. We prioritize trust from both sides, meaning we have to trust our clients as much as they trust us. We maintain safe and secure transactions with room for card-not present transactions and the ultimate fraud protection policies!
Quick, effective, convenient – a payment processing system for your high-volume business is finally here!