Comparing High-Risk Merchant Account Providers in The UK

Wednesday, February 28th, 2018

Are you looking for high-risk merchant account providers UK? What’s important to pay attention to when choosing a high-risk provider? What factors are associated with high-risk merchant accounts? Read this article and you’ll get answers to your questions.

Choosing a High-Risk Merchant Account Provider UK

Merchant account providers take into account various factors when determining whether your business is high risk or not. Criteria like credit risk of your business, its trading history and prospects, and the field in which you operate in will be considered.
As a rule, traditional banks and payment processors aren’t willing to work with high-risk businesses. The reason is the risk involved with them. Thankfully, there’re high-risk merchant account providers that are ready to work with businesses without excellent credit histories.

Bad or poor credit has to do with an individual who owns a business or is the director of the business. It can also refer to the business itself, or both. In credit records, you can find details concerning borrowing and repayments. Credit records also show any missed or late payments, defaults, county court judgments (CCJs) or bankruptcies.

If you’re a business that has been turned down by more traditional account providers, a high-risk credit card processing company can be the right option for you. So, how a merchant account provider is going to assess the risks related to your business? The provider will look at a number of factors associated with your individual enterprise and the sector you’re involved in.

By the way, online auctions, gambling, ticket brokers, online pharmacies, health and nutritional supplement products, travel and timeshare, software, monthly membership and subscription services, debt management and collection agencies, adult services are among high-risk sectors.

So, if you’re interested in high-risk merchant account providers UK, turn to the payment expert Best Payment Providers. You’ll get free consultation and contracts reviews, as well as rates, and fees.

Best Payment Providers checks how each provider organizes its integration process so to guarantee a smooth transition and onboarding process for you. This is a unique chance to get the most honest snapshot of the company at the time of writing.

Factors Your Provider Will Take Into Account

Are you planning to turn to a credit card processing company to get a merchant account? The factors that the provider will take into account include:

• How Long You’ve Been Doing Business and Your Financial Stability

Starters without much capital are generally labeled as high-risk. This is especially true of those cases when the credit card processing volume is unlike cash in the bank.

• Good Credit of Directors/Owners

Without good credit record, principals are usually classified as high-risk. However, personal guarantees can be taken into account.

• The Way in Which the Business Accepts Payments

If you accept payments in advance, the risk will be considered higher. If you accept payments online or over the phone, the risk will be higher.

• Field of Operation

Certain business sectors will be considered high-risk because of the chargeback rates, cancellations, and non-authorisations of payments. If this is your case, you’re likely to be offered accounts on less favourable terms.

• Fees

In case your business is classified as high-risk, you’ll be charged higher transaction fees.

• The Way the Provider Assesses the Risk

Different providers have a different look at risk. However, they typically focus on higher chargebacks rates and fraud.

Here, it’s important to note that merchants who have difficulty obtaining a high-risk merchant account in the UK, can try an offshore merchant account. Don’t forget to take both pros and cons into account when considering an offshore merchant account. Also, consider providers that specialise in providing merchant accounts for specific high-risk business sectors.

The label “high risk” will create some problems for you and make it challenging to get a merchant account. However, an expert payment provider can help you get the best deal for your business without challenges.