What is High Risk?

High Risk Pros works with several domestic and offshore solutions.We have multiple banking relationships so we can provide your business with the most reliable and cost effective solution possible. Whether you’re in a high-risk industry or deal in high volumes, you need a way to process credit card payments. We specialize in providing high-risk merchant accounts to a wide range of businesses. Our expertise in this area allows us to work with business owners who have bad credit, companies with offshore or international interests, and businesses facing any other challenge that negatively impacts their ability to accept credit cards. High Risk Pros works with several domestic and offshore solutions.We have multiple banking relationships so we can provide your business with the most reliable and cost effective solution possible. Whether you’re in a high-risk industry or deal in high volumes, you need a way to process credit card payments. We specialize in providing high-risk merchant accounts to a wide range of businesses. Our expertise in this area allows us to work with business owners who have bad credit, companies with offshore or international interests, and businesses facing any other challenge that negatively impacts their ability to accept credit cards.

Why is my business considered high risk?

 

A business can be classified as high risk for many reasons. The business owner may have a low credit score. The business may be brand new and have no history of previous credit card processing. The business may be competing in a new or unproven industry. The company could be selling to customers in a different country than where it is based. The customer may simply not recognize the charge on their credit card statement. In this case it is a good idea to tell the customer what will appear in advance, or to adjust the credit card descriptor accordingly. The average ticket or sale price may be very high, such as over $1000 or even $10,000. The business owner might have had their previous credit card processing cancelled and placed on the MATCH list for receiving too many chargebacks. The timeframe for delivery of the product or service may be too far in the future from the original credit card transaction. This is often true in the travel industry, or for businesses that make customized products or services. A chargeback could occur from a customized product (such as custom furniture) because the customer may claim that the product or service is different from what they expected.

If your business has been classified as high risk then you do not need to be alarmed. You are still able to get credit card processing for your business and operate as normal. Banks my ask for more background information or business financials but you will still be able to accept credit cards just as any other business. Some banks may ask for a higher processing rate in because they are taking on more risk. Banks may even ask for a reserve on your credit card processing. Once you have built up a positive history in your merchant account your business may be reclassified as low risk. If you already have a positive history in credit card processing, the banks will take this into account. A positive processing history would include six months to a year of a low amount of chargebacks and refunds. Credit card processing would like to see a high risk business achieving a chargeback percentage of less than 1% of total transactions. If you are receiving a higher than normal amount of chargebacks, then you may wish to investigate why this may be happening. Your customers may be unclear on the product or service they will be receiving.