Archive for July, 2013

High Risk Merchant Accounts for Online Business

Monday, July 15th, 2013

So you’re just starting an online business and need the ability to take credit cards to process customers’ payments. Setting up a small business with merchant account services should be a simple task, right?  Not if you’re ‘high risk’.high risk online credit card processing

Credit card processing providers are very careful when deciding which online businesses they will approve for merchant accounts. How do they chose who will be approved and declined? That part is the simple part. It’s all about risk.

That is why some of the major online payment processors set up just about any type of business, only to close the account a short time later.

Merchant account providers bear a certain amount of risk every time they process credit card transactions on behalf of a business. Credit card processors mitigate this risk by charging rates and fees specific to each business type. Of course a business owner’s personal credit has an impact on whether a business is viewed as higher risk by processing banks, but some businesses are automatically deemed high-risk based on the products or services they are selling.

It’s obvious that certain industries like pharmaceutical and adult services are immediately classified as high risk and may face more scrutiny when trying to get approved for high risk merchant accounts. In other industries, it’s all about charge backs.

There is always a chance that a customer, for whatever reason, may choose to dispute or even charge back a transaction. And as far as the credit card providers are concerned, in the merchant account industry the customer is always right. Businesses in industries like PC tech support, travel, and debt collection generally have higher charge back ratio.

Some industries are classified as high-risk for no apparent reason. This is the case with businesses selling products like dietary & nutritional supplements or electronic cigarettes. Getting set up with merchant account services for these industries can be difficult. Even more so with bad credit or no credit card processing history.

Fortunately, there are credit card processing companies that gladly process credit card transactions for businesses that fall into the high risk category.

At The Transaction Group (TTG), we have relationships with these processors. For over a decade, we have specialized in helping businesses throughout the world set up merchant account services. With our network of banking partners both in the United States and offshore we are able to get the best rates and deliver approvals faster than most other credit card processing companies.

If you have been declined for a merchant account because you were told online business is high risk, allow TTG to help.

Not only do we offer merchant accounts, we can also quickly set your business up with all the tools necessary for your online store, such as the credit card payment gateway and online shopping cart system.

Our all-in-one ecommerce solution is ideal for all new online businesses, including high risk merchants. All parts of the system are secure and compatible, ensuring a smooth checkout process for your customers, regardless of where they are located throughout the world. Review our complete ecommerce systems here.

To learn more about our credit card processing solutions, call us today. We’re always happy to answer any merchant account questions, especially for high risk merchants who typically face added scrutiny by other credit card processors.


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