If your business has been deemed high risk, you can find getting a merchant account difficult. A high-volume business or a business with low processing rates can get more generous terms than others. Your own personal financial history can also come into play. Some processors will charge you high rates; others will simply refuse you. How do you get high risk merchant account?

What are High Risk Merchants?

First, let’s iron out the definition of high risk merchants. Processors will judge on a number of factors, including:

• high rate of chargebacks
• past fraud history
• questionable product legality
• questionable marketing habits
• a history of high-cost sales
• personal credit history
• offshore headquarters

Some of these can hit businesses that don’t deserve to be rated in such a way. Types of high risk merchants include companies that deal in business-to-business sales. These have high-cost sales and may have periods of time where they see high chargeback. There are many products legal in some states and illegal in others – these can impact product legality and marketing habits.

Types of High Risk Merchants

Airplane charters, attorney services, telecom companies, furniture dealers, legitimate e-book or streaming platforms, and even lingerie stores can all be marked as high risk merchants through no fault of their own.

Now that you understand some types of high risk merchants and why you might fall into that category, you need to know how to secure a high risk merchant account. These will not always have favorable terms, and they can make you deal with hidden fees or exorbitant rates. None of that is fair.

A Better Alternative for Payment Processing

It can be advantageous to seek out a more modern solution. Interchange plus pricing is a model that offers up-front, predictable fees. It doesn’t bundle rates or qualify different levels or types of charges. There’s no three-tiered system that punishes certain businesses. It’s simpler to deal with. Because so many businesses qualify as high-risk unfairly, we have a great deal of training and experience in handling high risk merchant accounts through a lower risk system.

Let’s face it. If you have to ask, “What are high risk merchants?” chances are you aren’t one. Small businesses, business-to-business dealerships, attorneys, specialty stores, small platforms fighting against larger competitors, and many others shouldn’t have to face such an uphill climb when it comes to fair payment processing.

To learn more about how Y2Payments can help your company, contact us today at 888-693-1850.