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What Is a High-Risk Merchant Account?

Have you been categorized a high-risk merchant account? What does that mean and what are your options? Below is information about high-risk merchant accounts and your options. Call us at (727) 873-0963 if you have any questions.

What Defines a Merchant as a High-Risk Merchant Account?

How do you know if your business has been categorized as high-risk merchant and why is it important to make sure you have the right merchant account for your business? The difference and the importance could have a detrimental impact on your business so this information is going to be critical for you. Businesses that are categorized as high risk have to know who the right high-risk merchant account providers are, and those processors who are willing to process transactions for your high risk business. Proper planning to obtain a high-risk merchant account with reputable companies, like Double Helix Solutions, who are offering high risk payment processing solutions, will aid those businesses that need it most. These high-risk merchant account providers are high risk payment processing specialists that are willing to accept the liability for the increased risk associated with those industries categorized as high-risk businesses. Surprisingly, most companies who do fall into this class are unaware of it. For a complete list of merchants who need a successful high-risk merchant account application approval and to see if your business might require a high-risk merchant account, please click here (insert hyperlink to application).


What Makes a High-Risk Merchant?

What are the Most Common Reasons a Business might Need High-Risk Merchant Accounts?

01. The business is selling products online:

A high-risk eCommerce merchant account is a type of service commonly referred to as Card-Not-Present also known as eCommerce merchants.

02. The business is in a highly regulated industry:

Many businesses are classified as high-risk such as those involved with selling tobacco or e-cigs, firearms, and alcohol are among a few that would fall into this category.

03. The business is in an industry that a bank may see as a reputational risk:

Companies that deal with information technology that might risk accepting stolen customer information could be considered a reputational risk, as are those in any adult themed industries.

04. The business industry is known for having instances of chargebacks or fraud:

Merchant accounts that fall in this category often experience increased chargebacks, identity theft, fraud, and more; convincing banks to not approve these merchant account or significantly raise the processing rates.

05. The business sells products or services on a continuity or recurring billing model:

This type of business model brings a lot of chargebacks when clients are billed without remembering they even signed up; too many chargebacks will lead to your account shutting down entirely.

06. The person signing on the merchant account has bad credit:

This one is pretty cut and dry. Banks are less willing to open merchant accounts to those with bad credit.

Your next step

Just fill out our simple, online Merchant Account Application to get started.


Merchant Accounts for High-Risk Businesses

Getting approved for a high risk merchant account is not as easy as say a card present one as the approval process is an involved one. High risk merchants can improve their chances of getting approved by highlighting the best features of their business. Merchants should also discuss anything that makes the business stand out, such as proactive fraud monitoring and financial success will help. Address high sales volumes with your merchant account processor. Higher volumes impact the risk to the processing company. Showing a strong processing history of money moving through the business can increase the chance of approval. Finally, high risk merchant accounts should have a plan to address long fulfillment durations if applicable like for drop shipping platforms. Reducing the fulfillment duration or showing strong reserves makes the merchant a lower risk and increases the chances of getting approved.


High-Risk Merchant Accounts and Payment Gateway Solutions

The Double Helix Processing team has high-risk merchant accounts for businesses with high-risk payment processing volumes per month. Our high-risk merchant services give you access to information regarding your merchant account for high-risk businesses, including individual transactions and batch totals with comprehensive reporting tools.

Double Helix Processing offers flexible products and high-risk merchant account services that enable you to accept nearly all types of electronic payments including major debit and credit cards such as:

  • MasterCard®
  • VISA®
  • American Express®
  • Discover®
  • Diners Club International®
  • Signature debit cards
  • Gift and loyalty cards

We even have solutions for high-risk ACH (Automated Clearing House or e-check, electronic check) merchant accounts. Click here to contact us.