In this digital age, everyone needs to be able to accept credit cards. The prerequisite for credit card processing is opening a merchant account, and for that, you need a reputable merchant account provider. Finding a payment processor is even more challenging if you are a high-risk merchant.

So, the next thing that comes up is who needs high risk merchant account services and how to choose the high-risk merchant services provider? A merchant with a high potential for chargebacks, frauds, and refunds is classified as a high-risk merchant. The companies become high-risk due to the nature of the business or if a company has a poor credit score and if the merchants offer high-risk merchants.  The high-risk industry includes online gaming, adult entertainment, cigarettes and e-cigarettes, vape, start-ups, e-commerce, gambling, drugs, pharmaceuticals etc. 

Now that you have an idea who a high-risk merchant is. Let us look at who needs high risk merchant account services.

Industries That Need High-Risk Merchant Account Services

These industries are:

• Travel
• Internet Services
• Adult Entertainment
• Direct Response
• Affiliate Marketing
• High Ticket
• Forex/Binary options
• Continuity
• Document Preparation
• Software
• MLM
• High Volume Sales
• Drugs

Many more industries fall into the high-risk category, and the merchants that operate a business in these industries are classified as a high-risk merchant and need merchant accounts. 

How to Pick The Right High-Risk Merchant Services Provider

The high risk merchant services online should provide you with customised solutions that meet your business needs. The integrated payment gateway should be scalable and offer fraud prevention. The high risk merchant account services provider should provide you with a wide range of payment options, dedicated customer support and should be PCI compliant. Let us discuss these in details:

• Fraud Prevention

It should offer you fraud protection measures through its network of acquiring banks. The steps to reduce fraud should include 3D Secure, Device identification, AVS, risk scoring, CVV, flagging large transactions. So, select a payment processor that is PCI compliant as they provide advanced fraud protection, including encryption, tokenisation, 3D secure, and fraud management tools.

• Consumer and Merchant Support

Customer support is of utmost importance, especially in the case of card not present transactions because any problem in payment processing impacts the high risk merchant services online and results in lost sales. So, pick the merchant service provider that provides 24/7 customer support through various channels such as live chat, phone and email, especially if you are an e-commerce business.

• Chargeback Help

It is essential to pick the high-risk merchant account services provider that can assist you in handling chargeback issues. The payment processor should be proactive in risk analysis. Some service provider also maintains the database of consumers who have filed for chargebacks previously. Choose a payment processor that can help you in reducing and avoiding chargebacks.

• Payment Options

Be it a domestic business or an international business, you would like to accept payments through different modes such as credit cards, ACH, checks, wire transfers, in-app payments etc., to give your customers most of the payment options at the time of checkout. So, pick a payment processor that can integrate all possible payment options your customers use.

• PCI Compliance

Pick a payment processor that is PCI compliant as it ensures that they meet technical and operational standards. A PCI compliant processor also takes all necessary measures to keep the customers’ data safely. So, opt for PCI compliant payment processor to minimise risk.

Hardware and Software Provided by Payment Processor

High-risk and low-risk businesses need reliable, up-to-date credit card terminals, virtual terminals, POS System and mobile payments and their integration with online shopping carts. It is better to buy the equipment rather than lease, and the Clover point of sale system is highly recommended because it is affordable, secure and easy to use.

Hardware equipment needed for processing credit/debit card transactions is a card reader and an app or wireless or wired credit card terminal or a POS system. Use card readers that can read both magstripe and EMV cards. Choose processing equipment that can accept contactless payment methods as it is the future of payments.

A virtual terminal to process e-commerce transactions and card not present transactions and ACH support for accepting recurring or subscription billing.

Conclusion:

To pick the right merchant service provider for your business, you must consider your payment processing needs, credit history and the high-risk category you belong to. You should also consider factors such as fees they charge, terms of the contract, termination fees, etc. Compare different service providers and the services they offer you before finalising the merchant service provider.