High risk merchant services represent a challenge for both banks and business people. Why? It is self explanatory. They are taken for high risk solutions, so they obviously have to face some restrictions, limitations and requirements. Unfortunately, it makes no difference how profitable and solid they are. Particular industries are simply labeled to be risky. Many of them hang online. E-commerce dominates the real world market, yet it is still risky. From this point of view, both credit card processors and banking institutions associate them with a particular grade of risk. This system is based on clearing illegitimate businesses. But then, many honest merchants and hard working professionals are exposed to the consequences.
What makes industries risky to banking institutions?
The risk level is usually analyzed based on a series of factors. The cash flow is one of them. Normally, the amount of money you can borrow depends on the cash flow. At the same time, processing history is not to be overlooked either, not to mention the country of incorporation. Despite all these, most commercial credit card processors pay attention to the industry. Some industries are considered to be riskier than others. Some of the most affected fields include:
- Adult entertainment
- Electronic cigarettes
- Tobacco manufacturers
- Online pharmaceuticals
- Online gaming and gambling
- Online dating
Why are these fields said to be risky? Simple. They come with some legal age restrictions. Some of them are also costly. But with all these, it is still not impossible to find a commercial credit card or high risk merchant services. Are you interested to apply? Discover the main advantages of these services before moving on.
Good reasons to opt for high risk merchant services
High risk merchant services might bring in a wide variety of benefits. Research your options upfront though. You can thoroughly run your business over the Internet, but also watch your sales go through the roof. You can get an idea about what to expect if you research your options online. Contact the bank personally once you make a choice, since the offer is more likely to be deeply customized.
A generous monthly volume cap is one of the main benefits of high risk merchant services. Monthly caps may come as some limitations for particular merchants, but not for you. They are generous, so you have the possibility to grow your business without worrying about any issues.
Another good news is that you benefit from an extended acceptance of most credit card brands. It makes no difference what banks your customers rely on. As long as you can bill them, there are no concerns. If you impose limitations to your clients, these limitations will reflect over your business.
How about multi-currency processing? If you run an online international store, you better make sure that you accept your foreign buyers’ currencies as well. Do not forget about SSL encrypted services either, not to mention secure payment gateways, recurring billing options and low rates. These are not only some of the benefits of high risk merchant services, but also some of your requirements.