High risk businesses need a high risk merchant account for processing transactions online. These are special merchant accounts since high risk businesses have a higher chance of financial failure. Let’s go through the process of high risk merchant processing.
Merchant Processing: Credit Card Processing
Credit card processing allows businesses to accept debit/credit card payments from customers. The process is associated with the use of point-of-sale (POS) hardware and software in conjunction with a processor’s payment networks. Processors often charge a percentage of each sale and fee for each transaction based on the transaction type.
With many processors, you can find the option to set up payment gateways to accept card payments online. When the physical credit card isn’t present, you deal with CNP or card-not-present transactions either through a gateway or over the phone. In this case, there is an increased risk, which means higher rates.
High Risk Merchant Processing: High Risk Merchant Account
High risk merchant processing is offered by high risk processors. These processors are responsible for mediating the transaction completed by digital means to reflect into the merchant bank account. How does the merchant processing process take place?
When someone uses his/her credit card to make a payment, the processor and card issuing bank retrieve the information. Next, the bank affirms that transaction information and sends it back to the processor for authorization.
When a high risk processor makes a decision, it takes into account the following factors:
- Background of the business
- Whether the merchant has a long-term business plan
- The state of the business
- What factors make your business high risk
- Other information that might be required
When picking the right high risk processor for your business, make sure you’re offered the most secure, advanced, and cheapest payment processing services, including a high risk merchant account. A true payment expert in the high risk field will provide you with quick access to the best merchant processing solutions in the industry.
Process of High Risk Merchant Processing
When applying for a high risk merchant account from a high risk merchant processor, you’ll need to go through certain steps. The latter steps include providing information about your business and other data that might be required. Make sure to turn to a reputable payment specialist in the high risk field.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest-rated high risk merchant account processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.