High-Risk Merchant Account: Know everything about High-Risk payment processing emerchantpro.com

Ever since the inception of online Business and payments, a High-Risk Merchant Account has been in high demand. America was one of the first countries in the world to make the best use of its resources i.e. internet.
On a daily basis, online payment services process millions of transactions. And, without a doubt, payment processors are growing in order to attract more customers. For merchants who want to receive payments from clients, a High-Risk Merchant Account is a worthwhile investment.
Let us learn more about High-Risk Merchant Accounts and how any merchant with a high-risk business can easily obtain a merchant account.
Are you a High-Risk Merchant?
Acquiring banks use the phrase "high risk" to describe industries or enterprises that have a higher risk of financial loss than ordinary risk accounts. A high-risk classification can be attributed to a variety of factors.
The most prevalent reason for a high-risk industry classification is that
1. It has a statistically higher number of chargebacks than standard risk accounts.
2. Susceptible to more fraudulent transactions as a result of products, services, or targeted markets.
The merchant's business model can be another factor that contributes to the high-risk designation. Chargebacks are more likely to occur in recurring and subscription billing structures than in one-time sales, for example.
What is a High-Risk Merchant Account?
A high-risk merchant account is a payment processing account for firms that banks regard to be high-risk. Because high-risk firms are more likely to experience chargebacks, they must pay greater costs for merchant services.
The bank may place a rolling reserve on your account if your firm has a high risk of chargebacks or if your account history indicates a lot of chargebacks and refunds. It's the sum of money set aside to offset the risk of chargebacks or fraud.
Risk is influenced by how products and services are sold. Ecommerce and MOTO merchants, for example, are at a larger risk than retail sales. Due to a statistically increased possibility of chargebacks, affiliate marketing, direct sales (MLM), infomercials, direct mail, up-sells, and other sales strategies are deemed high risk.
Due to "reputational risk," some acquiring banks refuse to accept specific industries. Adult entertainment websites, for example, may not be accepted by all banks. Despite the fact that those banks allow high-risk accounts from merchants in other industries.
A merchant's products, services, and delivery periods can all contribute to a high-risk classification. High ticket sales or high volume merchant accounts, for example, carry a higher risk than lower ticket sales or low volume accounts. Merchants who sell digital goods face a greater risk than merchants who sell physical goods. A merchant who works in travel is a high-risk merchant because trips are planned in advance.
What are the differences between high-risk & low-risk merchant account?
Merchant account providers have their own standards for classifying businesses based on their risk, although both groups of merchants have numerous traits.
Low-Risk Merchant Account
The following are some general indicators for a low-risk merchant account:
1. Monthly processing of less than $50,000
2. The average transaction value is under $50.
3. The industry in which a merchant work is seen as low-risk ( For example, low risk-clothes and shoes, household goods, baby products)
4. The chargeback ratio ranges from zero to low.
5. The country in which a company operates is regarded as low-risk. Countries such as European Union countries, the USA, Canada, Australia, and Japan are a few examples of low-risk countries.
6. Returns are less.
High-Risk Merchant Account
The higher the risk, the more chargebacks a company has. As a result, the most important elements are industry reputation and processing history (The preferred chargeback percentage is less than 0.9 percent of all transactions).
Based on the guidelines of a certain payment processor
1. Monthly sales volume of more than $50,000
2. The average credit card purchase exceeds $50.
3. The high-risk merchant industries such as software, forex trading, tobacco, gambling, adult toys, etc.
4. A company provides goods and services to countries with a high rate of fraud.
5. Excessive chargebacks and a bad credit history
Willing to apply for a High-Risk Merchant Account? Know this
When you decide to proceed with an application, a professional high-risk merchant account consultant will be allocated for you. He will guide you throughout the process. The goal is for you to receive approval as quickly as possible at the best available rates.
The application process for a high-risk merchant account is simple. You fill out an application and attach supporting documents to it.
The following are some of the supporting documents:
1. Business formation information
2. ID of the account's signer
3. Business bank statement for the last three months
4. Information about service platform and SSL certificate
5. Tax ID
Account approvals can take as little as one day, however, due to the time required to properly underwrite a file, most high-risk merchant account approvals take 3-7 days. For rapid acceptance, you'll need a complete application package.
Take your time filling out the application form completely and submitting all needed papers. The more information you provide, the faster your application for a high-risk merchant account will be approved.
eMerchantPro as a reliable solution for High-Risk Merchant Account
eMerchantPro is a full-service company that provides high-risk merchants with a number of payment processing options. It offers a full-fledged high-risk merchant account with the following benefits,
1. Accepts all major credit card brands from around the world.
2. Adding e-checks to your checkout page will increase orders from US customers.
3. Add 80+ popular alternative payment methods to your shopping cart.
4. Payments can be both, a one-time payment or a regular basis payment. Customers will appreciate the convenience. It's beneficial to you.
5. Multi-currency processing broadens your market reach.
6. Level-1 PCI-DSS payment gateway protects your company from fraud and data breaches.