What Should You Know About The High-Risk Business Credit Card Processing?

The high-risk business merchant accounts are designed to help the businesses considered at high risk. The high-risk merchant accounts in UK are necessary for all those businesses with a greater risk of chargebacks. Some industries, for example, firearm sales and tobacco, don’t allow the processors. However, if you run a high-risk business but still want to accept card payments, you can apply for a high-risk business credit card merchant account. 

So, what makes a business at high risk?

A business is considered at high risk in 2 conditions: the high-risk industry type and high-risk financial failure. There are no such single frameworks in the payment industry which determine the risk factors. Some merchant account service providers don’t work with certain industries, while others ask business owners who want merchant accounts to visit them. They will ask you to provide information about the business you are dealing with. After that, the company will decide on high-risk business credit card processing based on the applicant’s industry type. Some of the most common industries that are at high risk are:

  • Age restricted items
  • Cigarettes & tobacco
  • Accounting & tax preparation
  • Adult products
  • Dating services
  • Weight loss programs
  • Sports fantasy & online gaming.’
  • Vape and weed industries and much more!

How does high-risk credit card processing help the high-risk business?

When a business wants to apply for a merchant account, it has to go through a step-by-step process. The process is similar to applying for a new credit card, business loan and mortgage industry. The service provider takes a brief on the owner and the business partner, the type of business you are running and the risk involved before approving the merchant account.

When the bank agrees to offer the loan first, they ensure whether you can pay the loan back or not. The high-risk business credit card processing is designed to help the high-risk merchants whose businesses are riskier than the general business. This solution is meant for all those businesses which don’t meet the requirements of credit card processing and ask for attention.

Multiple high-risk merchant accounts in UK don’t accept high-risk business. When a bank denies approving the merchant for creating a high-risk merchant account, then they need help from the financial institution. So, in the next section, we have defined the steps to perform when you need a high-risk merchant account.

What should be the next step if you need a high-risk merchant account?

  • Be transparent to the service provider

You should be honest and open to the service provider during the application process for merchant accounts. You should disclose all the required information related to your business. Communication and transparency are the 2 things that help you.

  • Check out the cash levels

The cash on hand signifies stability. Most banks check 25% to 50% of monthly card transactions.

  • Prepare the right documents

You should have the required documents during the application procedure. Be ready with at least three to six months of bank statements. Through these statements, the service providers check where cash is coming from and where it’s going. 

  • Improve the credit score

You can’t change the decision of payment companies whether they evaluate your business as a high-risk industry or not. But yes, you can take steps to improve your credit scores. Talk with the payment company and ask about the right ways to reduce your risk.

  • Communicate with the customers

Do you want to minimise the chargebacks? For this, you should check whether the return policy and shipping policy are posted on the required platform or not. Make sure the customers should easily reach you if they have any issues.

  • Be ready to grab knowledge

You shouldn’t pretend to be a knowledge expert. Instead of this, rely on the expertise and the payment processor representatives. Ask for help to set up your payment process and ask for their recommendations.

How can I Find a high-risk merchant account provider?

A wide variety of industries are counted under the high-risk business. There are so many high-risk merchant accounts in UK companies that rely on merchant account providers. Do you want to consult with them? For this, search for the best representatives and set up a consultation with them! Few representatives are specialized in serving specific industries. Before investing in any of them, you should learn what each payment processor offers. You should go through the multiple parameters, for example:

  • About their experience and the expertise
  • What type of support do you ask for to maximize the chance of success?
  • How long does the process take?
  • What are the circumstances and barriers you might go through and much more?

Do you want to look for the best merchant account provider with all the ideal parameters for high-risk business credit card processing? Take a look at the consultants of We Tranxact Ltd.