High-Risk Merchant Accounts in the UK: Mitigating the Risks

Friday, March 11th, 2022

The reason why traditional banks and many processors prefer to work with low-risk businesses is associated with the lower risks associated with these businesses. How can you become more reliable to high-risk merchant-services providers in the UK? How can you reduce the threats associated with your risky business? Where can you obtain high-risk merchant accounts in the UK?

How to Become Less Risky

If your business is tabbed as high risk, you’re likely to be operating in a high-risk field and dealing with a higher rate of chargebacks and fraud. What steps can you take to mitigate the risks associated with your business?

• Protect your business with effective fraud detection and chargeback-mitigation techniques.
• Have a clear and straightforward refund policy on your company website and make your chargeback-liability period shorter.
• Take measures to improve your credit score by making your payments on time, bringing all your past-due accounts current, and avoiding applying for credit too often. 
• Do your best not to appear on the Terminated Merchant File or Mastercard Alert to Control High-risk Merchants lists. Otherwise, you’ll automatically be classified as high risk. 
• Try reapplying for a low-risk status after some time. The longer you are in your business, the less risky you’ll appear

Factors Making Your Business Risky 

If you’re in a high-risk industry, you’ll face higher transaction fees and greater restrictions. The UK Financial Conduct Authority (FCA) has recently mentioned the following points concerning one of the high-risk companies that you can take into account to provide better protection for your business:

• Inadequate systems and controls do not allow the company to properly identify and reduce risks and stay from fraudulent trading and money laundering.
• Not exercising due skill care and diligence while applying AML policies and procedures.
• Not appropriately assessing, monitoring, and eliminating the risks of financial crime.

Thankfully, there are experts in the payment-services comparison field like BestPaymentProviders.co.uk that can help you get fast and easy access to the most secure payment services in the industry. 

Best Payment Providers UK reviews contracts, rates, and fees to ensure you can avoid getting into the trap of misleading terminology and dishonest sales tactics. With BestPaymentProviders.co.uk, you can find the safest and cheapest high-risk merchant accounts in the UK

Making Your Business Less Risky

If your business is dealing with higher chargebacks, fraud, or a high volume of returns, payment processors will label it as high risk. The good news is that you can take measures to mitigate the risks related to your business.