Ever been denied the opportunity to work with a credit card processor because you’ve been deemed a high risk business? You’re not alone. Many companies deal with the same label every single day, and often it’s a label that comes with very high fees and frustration. Wondering why you’re considered a high risk merchant account? There could be a number of different reasons, but in some cases, it’s the industry in which you work. There are a number of high risk merchant industries.
What Are High Risk Merchants?
Generally credit card processors consider industries high risk if their services or products have a history of excessive charge backs. Similarly, industries with services or products that have longer chargeback liability periods, like annual memberships, end up with that same high risk label. Sometimes, it’s just the reputation of the industry. Take a look at a few types of high risk merchant industries:
• Timeshare and Travel
• Firearms and ammunition
• Adult Products
There are other risk factors as well. If you do business outside the United States routinely, for example, you may end up with a high risk label. If you’re not in a high risk industry, but you work with high risk clients, that could also mean a similar label. Bankruptcy attorneys, for example, often end up with a high risk label, as do bail bondsmen.
You Can’t Change Industries, So Now What?
If you love what you do, and you don’t want to change industries, you’re not out of luck just yet. There are still a few things you can do to get great rates. The single best first step you can take, though, is to contact us. Y2Payments offers processing services to companies in a variety of industries, even those deemed high risk by so many other companies.
To learn more about what we can do to help, give us a call at 888-693-1850.