Wednesday, November 22nd, 2017
A high risk industry varies from merchant account provider to provider, but some common examples include adult entertainment, online gambling sites, e-cigarette and vape shops, and more. Your business can be classified as high risk due to higher chargeback rates and payment processing fraud, or if you’re in a new, burgeoning market.
Merchants in high risk industries won’t find it easy to get approved for a payment processing account. Whether or not a merchant services provider would like to work with a high risk merchant usually depends on the reputation of the industry itself and the sustainability of the businesses within it.
High Risk Businesses and High Risk Merchants
If your company has a relatively high chargeback rate, it’ll be tabbed as high risk. If consumers are often cancelling transactions or requesting refunds, this makes your business be exposed to possible fraud, which is again a high risk situation.
In addition, being classified as high risk or not depends on how long you’ve been in business. Moreover, you’ll be regarded as high risk if you have a low credit score. Besides, competing in a new or unproven industry makes you high risk as well. Finally, if you’re selling to customers in a different country and not where you’re based also puts you in a high risk category.
Here is a list of high risk businesses:
- Adult Merchant Accounts
- Airlines and Jet Charters
- Bad Credit
- Bail Bonds
- Cigars and Pipes
- Collection Agency
- Credit Repair
- Debt Consolidation
- Diet Programs
- Ecig Merchant Accounts
- Educational Seminars
- High Ticket
- High Volume
- MLM and Bizops
- Moving & Transportation
- Online Firearm Sales
- Penny Auctions
- Prepaid Calling Cards
- Software and E-Books
- Sports Betting Advice
- Tech Support
- Ticket Brokers
- TMF Merchants
- Travel and Timeshares
- VOIP and Telecom
- Water Purifiers
Get the Best High Risk Merchant Account for Your Business
To get easily approved for low-cost and secure high risk merchant accounts, turn to Best Payment Providers. Best Payment Providers is a payment expert that provides free consultation, and reviews contracts, rates, and fees to ensure you’re getting the best deal.
Since integration requirements are just as important as fees and customer service, Best Payment Providers checks each provider’s integration process to guarantee a smooth transition and on-boarding process. Best Payment Providers’ goal is to be certain you’re getting the most honest snapshot of the company at the time of its writing.
By the way, businesses in East London have the worst credit scores in the country because of the area’s rampant startup culture. The “E” postcode area in East London is the worst postcode area in the country regarding average credit scores. According to Experian, businesses with an “E” postcode have an average Delphi credit score of 39.5.
DP-Delphi Score is a credit bureau score developed in partnership with Experian, the world’s largest credit bureau operator and one of the 3 credit bureaus in the USA and UK.
Delphi Scores are as follows:
0: Filed company
1: Imminently failing company
2 – 15: Maximum Risk
16 – 25: High Risk
26 – 50: Above Average Risk
51 – 80: Below Average Risk
81 – 90: Low Risk
91 – 100: Very Low Risk
Even if you’re a high risk business, you can build up a positive history and be reclassified as low risk. A positive processing history would include 6 months to a year of a low amount of chargebacks and refunds.
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