A high-risk trading account is a business that engages in online gambling, adult services, pharmaceuticals, travel services, sports betting, tobacco or online tobacco companies, or any business with a high turnover or high risk of fraud. If your business doesn’t seem high-risk, use a standard e-commerce account or consider applying for an overseas merchant account. The high risk merchant processing solutions allows you to process credit cards online for the risky services you offer.
Pricing and Fees for High Risk Trading Accounts
If you’re looking for high-risk trading accounts, don’t be surprised to learn that you have to pay an initiation fee, whereas standard merchant accounts usually require little or no initiation fees. This is because trading account providers put your account at risk and getting a high-risk trading account is not that easy. You also pay relatively high costs for the credit cards you process.
The Mystery of High-Risk Trading Accounts
If you tried to apply for a high-risk merchant account and were denied for any reason, consider contacting your third-party credit card processor. Some trading account providers do not take the risk of chargebacks expected in your industry. If your business is considered high risk, don’t think you can’t get a merchant account. Appropriate research is required.
Many processors and banks view certain types of businesses as risky.
These companies may include travel agency accounts. Pharmacy Merchant Account; mature seller account; telemarketer merchant account; Internet merchant account etc. Banks and other merchants consider these accounts high risk because of the potential for excessive chargebacks, violations of the law, potential returns or bad publicity for accepting this type of business. High-risk traders often find it difficult to open their trading accounts.
Banks and other traders have strict laws against high-risk trading accounts.
They will always assess a trader’s status based on certain information such as the trader’s time at work, credit history, and other previously held trading accounts. In such cases, when a trader’s business comes into operation will make a significant difference. If his company has been in business for a long time, it acts as a guarantee for the trading account provider. Good understanding of the high risk merchant services associated with running a business and territories.
Sellers also typically run credit checks on merchants.
This is to check if the loan has been repaid and to reveal bad credit records such as bankruptcy. The higher the credit score, the more likely the seller is to open an account. For someone with a seller account, the way they managed their old account casts a negative or positive light on their current nomination. If the company or supplier closed the previous business account, it will be recorded. The seller also verifies information such as default payments and chargebacks in the seller’s previous account. The more there are, the less likely a trader is to open a high-risk trading account.