What is a High Risk Merchant Account?

by | Dec 12, 2016 | Credit card processsing

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The Internet is a very big place, with a very big customer base. There are over three billion people online as per Internet Live Stats, and roughly half of them have spent their money on one service or the other during their time spent here.

The industries represented within the world wide web are plentiful, and diverse – it’s a place for pastries, books, hand-knitted sweaters and homemade jewelry, professional marketing services and financial advice, legal aid, medicine, and even things like alcohol, nicotine, and adult content.

Among these industries, businesses operating within industries where chargebacks are common – where people go back on their purchases, like travel or PC support – are considered “high risk” merchants.

High-risk merchants are determined as such based on the risk they pose not to their customers, but to their credit card processors. A high-risk client requires innovated payment solutions through a platform of integrated systems, of which eData Pay has.

What to do when you’ve been assessed as “high risk”.

When you are considered a high-risk merchant eData Pay can align you with a high-risk credit card processing solution, where you can be assured that all your payment needs are met. The best solution depends on the right circumstances, but one way to handle being a high risk merchant is to apply for an offshore merchant account. Another, is a third-party merchant account handling your business and that of many others, offsetting your risk with low-risk merchants and thus allowing you to take credit cards for your business.

While alternative payment providers like PayPal always make for a great idea for any online ecommerce business, they should not represent your primary payment choice. As, most people rely on credit cards to pay for goods and services online – make sure that you do not miss out on them, at all costs.

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