Am I a High Risk Merchant?

Online shopping

Startups and high risk companies have always had a harder time getting financial backing for their businesses. Most lenders view businesses that operate within high risk markets as risky and deny them funding. Still there are many alternative lending options for new entrepreneurs and high risk business owners. But before you sign any agreements, be picky about who you sign with and pay attention to terms.

Who Should Be My Credit Card Processor?

While one payment processor’s guidelines are strict, another’s may be more lenient. So it pays to do your due diligence and investigate a credit card processor’s guidelines before applying. Also if your provider specializes in high risk merchant services, then you’ve already got a better chance at being approved. Once you’ve selected your desired high risk payment processor, understand that rates for high risk credit card processing are higher than non-high risk businesses. Even if you do find a high risk provider, note that for every 1 ethical provider, there are 300 unethical payment processors. Pay attention to termination fees, interest rate increases, and other incidentals as well. Do they wat a rolling reserve? If so how much?

Am I Considered High Risk?

Here’s a list of some “high risk” business types that might require a high risk merchant account. It is by no means representative of ALL industries, but it definitely covers a large number of them.

  • 1-800 type chat sites
  • Airlines
  • Airplane charters
  • ALL sexual oriented or pornographic merchants
  • Escort services, adult telephone conversations, dating services
  • Brokering
  • Casino, gambling or gaming
  • Check cashing services
  • Cigarette or electronic-cigarette sales or nicotine cartridges
  • Travel services
  • Travel agencies
  • Debt collection
  • Direct selling
  • Discount health – medical care programs
  • Electronics
  • Event ticket brokers (unlicensed – non registered (i.e. Stub Hub type merchants))
  • Federal Firearms License (FFL) dealers
  • Finance broker, financial consulting or loan modification services is the leading online high payment processor that provides a wide selection of  high risk credit card processing, business funding, check processing solutions, payment gateways, along with a full support platform that make high merchant accounts grow and run more smoothly and experience higher profits.