Are you a small business owner looking for a method to process credit cards? A high risk merchant payment processing system is probably what you need. These are programs that allow small business owners to process credit cards even if they are in a high risk industry. Many merchants are considered high risk if they do less than $1 million in business annually. Small businesses, especially if they are just starting out, rarely meet that standard. A high risk account allows the business to process cards and the merchant usually pays a higher fee for the processing service.
Many businesses are considered DCPay because of their industry or the way they operate. For example, travel agencies, collection agencies, and bail bond businesses are all considered to be high risk.
A high risk merchant account operates like a line of credit but is actually a bank account. This provides the business owner the ability to process debit and credit cards. The merchant typically pays a small percentage of each transaction as a fee to the provider.
When a business or merchant are considered to be high risk, they are seen by the account provider as being at a higher risk of chargeback, fraud, reversal or refund. One common example is customers using a stolen debit or credit card to buy services or products. If the rightful card owner challenges the charge, it may be reversed. This type of issue raises the bank’s risk since they will have to deal with the fraud and the resulting costs.
There are many considerations when choosing a merchant account. Businesses can usually choose between an account with a payment processor, a bank, or another type of merchant provider. Depending on the business, the owner may be able to negotiate reduced processing fees. It is also a good idea for the owner to obtain several quotes before making a decision. Fees vary between merchant account providers and it is possible to find good service at a lower rate. This can help a business’ bottom line.
There are many companies which specialize in high risk merchant payment processing. This means that if a business owner does their homework, they may be able to discover companies offering faster payouts, more competitive rates, and even lower reserve rates. While these may be designed as incentives to bring in new business, they can also serve as a way for a business owner to control costs.
High Risk Merchant Payment Processing 