Thursday, September 14th, 2017
The majority of merchant service providers rank businesses based on the risk factors associated with their industries. Risk can be assessed according to certain criteria such as business credit risk, prospects and trading history, and business industry. The good thing is that there exist reputable payment processors that offer no credit check so you, as a high risk business owner, can get the best for your business needs even if you are tabbed as high risk.
Credit Card Processing and a High Risk Merchant Account
Total card spending accounted for £57.1 billion in June, which is up by 0.3% on May and 7% on June 2016. There were under 1.4 billion card payments in June, a monthly record and a 12% increase in the past 12 months. This is the highest annual rate of growth in the number of payments since June 2008, caused by a significant increase in online (+20%) and contactless (+143%) purchases.
Today, it’s no stretch to say that being able to accept online payments is crucial to your success. Though it’ll be more challenging for you, as a high risk business owner, to get approved for a merchant account for high risk credit card processing, you should research well and find the true professional in the field to turn to.
No matter you operate in a high risk industry or have a bad credit history, you should look for a high risk merchant account that will best suit your business needs. The downside is that you’ll be obliged to pay higher monthly and transaction fees with most providers. Fortunately, there are experts that specialise in the high risk sector and offer the best services, including a high risk merchant account and a UK merchant account with no credit check.
High Risk Businesses
High risk businesses are associated with refunds, chargebacks, and fraud. Traditional banks and financial institutions usually shy away from businesses classified as high risk, such as:
- Adult products and services
- Digital downloads
- Drug paraphernalia
- Gambling (both on and off-line)
- Health supplements
- Investment schemes
- Payday loans
- Travel related business
- Web hosting
That’s where alternative online payment processors specialising in the high risk industry come into play.
It’s important to note that there are businesses that aren’t involved in a high risk industry but are considered high risk due to their bad credit. Such businesses are going to end up with paying higher fees as well, but can improve their credit by consistently paying bills on time.
The main points typical of high risk merchant accounts are the following:
- Longer settlement periods
- Higher transaction fees
- Higher reserve
- Higher monthly or annual fees
However, with a respectable high risk specialist that is experienced in working with your type of business, you can enjoy:
- Fast approvals in 24 – 48 hours
- No setup fees for most merchants
- High risk merchant approval
- High volume solutions: load balancing gateways and multiple MIDS
- Chargeback protection and chargeback prevention programs
- iCheck check processing service, featuring quick payments
What you should do is to turn to high risk experts that offer merchant account services geared to your own business needs and the lowest possible rates in the industry, as well as excellent customer service. Avoid working with providers that aren’t willing to disclose their total fee structure.
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