With the surge of e-commerce shopping and the rising demand for digital products and services, it’s more important than ever for companies to have a reliable credit card processing service for their business. According to a recent study, roughly 83% of Americans aged 30-49 own and use at least one credit card to make regular purchases.
But what do you do if your business is considered “high-risk”? Being labeled high-risk can present major challenges when trying to secure a reliable merchant account to handle your credit card processing online.
While it may be tempting to turn to well-known payment processors like Stripe or Paypal, once your business reaches a certain point, you will need a full-service merchant account to handle your high-risk credit card processing. That’s when things get complicated.
Online businesses, where “card-not-present” transactions are frequently made, require high-risk credit card processing. However, this type of service is not as readily available for online businesses. Many merchant account providers refuse to process transactions for online businesses, considering them too difficult and risky.
Reasons Why You Might Be Considered High Risk
The reasons why your business may be considered high risk can range from having a poor credit rating to the specific type of business you are operating and sometimes this classification is completely out of your hands.
While there are some ways to reduce your risk profile, including opening up multiple merchant accounts, there are other factors that may put you in the high-risk category, including:
- A start-up business with little or no credit card processing history can be considered high risk by banks because of their lack of payment history.
- A poor credit rating or a history of bankruptcy can make it difficult to secure a merchant account because banks are hesitant to take on the risk.
- An industry with a high chargeback ratio such as travel is considered high risk due to the risk of customers requesting refunds for such transactions.
- High average ticket amounts such as airline tickets are risky due to their high cost and risk of chargebacks.
- Subscription-based products of services including online dating and magazines. While a good source of revenue, these are also at risk for cancellations making them a high risk for payment processors and banks.
- A history of merchant accounts terminated by a bank is considered high risk for banks or payment processors take on.
- A business that processes high volume transactions can be risky, especially without a history of good business practices to ease the mind of banks and payment processors.
A high-risk classification can make it difficult to secure a merchant account from a reputable company. With a limited number of providers willing to take on a high-risk business, you might be left signing up with a provider charging high rates for substandard service.
Thankfully, there is an alternative. Here at JJS Global, we believe that if your business is legal and legitimate, you deserve a fair chance to accept credit cards online, even if you are working within the card-not-present environment.
We provide high-risk merchant accounts with a variety of features that make it possible for your business to process credit card payments from your customers.
High-Risk Merchant Account Features:
- Recognition of all the major credit card brands, including MasterCard and Visa and even China Union Pay, JCB and Diner’s Club International.
- Commitment to fraud protection with 3D Secure Processing, SSL Certificates, and MaxMind.
- PCI DSS-compliant payment gateway that recognizes more than 40 popular shopping carts.
- Multi-currency processing handling more than 160 currencies.
- Live customer and technical support services.
Currently JJS Global offers high-risk credit card processing to dozens of high-risk industries including nutraceuticals, financial services, debt consolidators, and many more.
Interested in learning more about how JJS Global can help provide your customers with the ease and convenience of online credit card transactions?
Our trusted network of offshore and international acquiring banks allows us to provide merchant accounts to a wide range of high-risk, e-commerce industries.
Simply give us a call at 224-535-9462 or click here to send us an email.
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