risk


Are You a High-Risk Merchant Account?


Not all merchant transactions are created equal. Most merchant payment gateways are designed for customers with moderate to low payment disputes, fraud or credit risk. These merchants are charged using a standard rate schedule with may include transaction fees, transaction value upcharges (similar to a commission), and funds availability rates. These standard rates do not apply to merchants who are deemed to be of ‘high-risk’. High-risk merchant accounts are often charged significantly more for standard services if they offer high-risk payment gateways at all. If you find yourself in this situation, you are likely to be an eCommerce merchant account, ‘bad credit’ merchant account or within an industry that has a history of attracting customers that have bad credit, often dispute transactions or suffer buyers’ remorse like adult entertainment establishments or liquor stores. There are transaction specialists who cater to the unique needs of your business by offering high-risk credit card processing and offer high-risk merchant accounts instant approval on pending transactions that minimize overall risk and facilitate greater sales volumes.

This credit card processing to high-risk accounts offers a level of service to merchants that would not be available through other means at rates that are often very competitive to market at large. This is often a godsend for bad credit merchant accounts and allows them to secure steady income as they restructure. For ‘sin’ industries, these high-risk credit card processors offer high-risk payment gateways that are secure and limit customer transaction write-offs through high-risk merchant account instant transaction approvals. 


High Risk Payment Gateways and the Impact of Transaction Risk to Merchants


 In general, merchants offer products and/or services in exchange for payment from customers, be they consumers or other businesses. The vehicles for merchants receiving payments include (in various forms of packaging); coin, currency, checks, wire transfers, electronic funds transfers, charge cards, internet transition processors (PayPal, Square, Wise, etc.), and Person 2 Person processors (Venmo, Zelle, etc.). Each payment gateway has inherent risks, costs, liquidity constraints and accessibility hurdles for the customer, merchant and transaction processor. In this discussion we will focus primarily on high risk payment gateways and more specifically high risk credit card processing. Transaction processors encounter unique risks with each transaction type but the transactions with the largest potential for chargebacks due to fraud or disputes are with charge card transactions. These processors are compensated for the time and effort of transferring funds by per transaction charges, dollar volume upcharges (a percentage charge on dollars transacted) and/or income derived by investing funds in transition before being made available to the endpoint merchant.

High risk merchant accounts often erode conventional transaction pricing structures either because they attract customers involved in credit fraud, have a customer base that regularly dispute transactions due to buyers’ remorse or Have sales cycles that are more prone to buyer’s remorse or require longer processing times.  Sin markets such as the sale of tobacco, liquor, gambling and other adult services are often categorized as high-risk credit card processing and charged a premium.

Ecommerce merchant accounts and bad credit merchant accounts (where the merchant is in jeopardy of filing for bankruptcy), are also categorized as high-risk merchant accounts. Merchants serving customers with volatile transaction patterns or that are facing a challenging financial landscape generally seek out the services of transaction specialists who offer
high risk credit card processing with tailored risk limiting solutions at affordable rates and reasonable fund availability schedules. These specialists often offer sophisticated transaction approval systems that offer the high-risk merchant account instant approval as transactions are entered and processed on the spot. High risk merchant account instant approvals involve significant data resources to cull out bad credit or fraudulent transactions and yet offer a quick and easy transaction experience to most other customers. High risk credit card processing with instant approvals requires on-line data access at the point of sale for larger denomination transactions. High risk merchant accounts that typically have smaller dollar value but frequent transactions often use fraud prevention databases at the point of sale to reduce transaction times. This may also hold true for


ecommerce merchant account payment processing.


Are You a High-Risk Merchant Account? Not all merchant transactions are created equal. Most merchant payment gateways are designed for customers with moderate to low payment disputes, fraud or credit risk. These merchants are charged using a standard rate schedule with may include transaction fees, transaction value upcharges (similar to a commission), and funds availability rates. These standard rates do not apply to merchants who are deemed to be of ‘high-risk’. High-risk merchant accounts are often charged significantly more for standard services if they offer high-risk payment gateways at all. If you find yourself in this situation, you are likely to be an eCommerce merchant account, ‘bad credit’ merchant account or within an industry that has a history of attracting customers that have bad credit, often dispute transactions or suffer buyers’ remorse like adult entertainment establishments or liquor stores. There are transaction specialists who cater to the unique needs of your business by offering high-risk credit card processing and offer high-risk merchant accounts instant approval on pending transactions that minimize overall risk and facilitate greater sales volumes.

This credit card processing to high-risk accounts offers a level of service to merchants that would not be available through other means at rates that are often very competitive to market at large. This is often a godsend for bad credit merchant accounts and allows them to secure steady income as they restructure. For ‘sin’ industries, these high-risk credit card processors offer high-risk payment gateways that are secure and limit customer transaction write-offs through high-risk merchant account instant transaction approvals. 


High Risk Payment Gateways and the Impact of Transaction Risk to Merchants In general, merchants offer products and/or services in exchange for payment from customers, be they consumers or other businesses. The vehicles for merchants receiving payments include (in various forms of packaging); coin, currency, checks, wire transfers, electronic funds transfers, charge cards, internet transition processors (PayPal, Square, Wise, etc.), and Person 2 Person processors (Venmo, Zelle, etc.). Each payment gateway has inherent risks, costs, liquidity constraints and accessibility hurdles for the customer, merchant and transaction processor. In this discussion we will focus primarily on high risk payment gateways and more specifically high risk credit card processing. Transaction processors encounter unique risks with each transaction type but the transactions with the largest potential for chargebacks due to fraud or disputes are with charge card transactions. These processors are compensated for the time and effort of transferring funds by per transaction charges, dollar volume upcharges (a percentage charge on dollars transacted) and/or income derived by investing funds in transition before being made available to the endpoint merchant.

High risk merchant accounts often erode conventional transaction pricing structures either because they attract customers involved in credit fraud, have a customer base that regularly dispute transactions due to buyers’ remorse or Have sales cycles that are more prone to buyer’s remorse or require longer processing times.  Sin markets such as the sale of tobacco, liquor, gambling and other adult services are often categorized as high-risk credit card processing and charged a premium.



Ecommerce merchant accounts and bad credit merchant accounts

(where the merchant is in jeopardy of filing for bankruptcy), are also categorized as high-risk merchant accounts. Merchants serving customers with volatile transaction patterns or that are facing a challenging financial landscape generally seek out the services of transaction specialists who offer
high risk credit card processing with tailored risk limiting solutions at affordable rates and reasonable fund availability schedules. These specialists often offer sophisticated transaction approval systems that offer the high-risk merchant account instant approval as transactions are entered and processed on the spot. High risk merchant account instant approvals involve significant data resources to cull out bad credit or fraudulent transactions and yet offer a quick and easy transaction experience to most other customers. High risk credit card processing with instant approvals requires on-line data access at the point of sale for larger denomination transactions. High risk merchant accounts that typically have smaller dollar value but frequent transactions often use fraud prevention databases at the point of sale to reduce transaction times. This may also hold true for ecommerce merchant account payment processing.
High risk credit card processing  If you're a business owner, then you should know that there are certain things that could make your company high risk. If you don't think about these things beforehand, it's possible for them to damage your reputation and cause other problems in the future. Here are some of the indicators that can show if your company is high risk or not. 1. You Have A Short Credit History Some companies have High risk credit card processing  and a short credit history. As a result, they can't be used as collateral and may be categorized by lenders as high risk. This means they might charge higher interest rates or require more stringent terms than what would otherwise be the case if you had a strong track record of managing loans. 2. Your Business Is Susceptible To Fraud If you're running a business that's very susceptible to fraud, then lenders will likely see it as high risk. For example, if you have an online retail cbd store that doesn’t have an elaborate, High risk payment gateway  retailers might be warier of giving out loans because they know that this type of business is targeted by hackers the most. 3. You Don't Have Much In Savings Accounts If you don't have much in your Ecommerce merchant accounts, or savings accounts, lenders will likely see it as high risk. The reason for this is that if your business does not turn a profit and the loan goes into default or bankruptcy, then there won't be any funds available to repay the lender. 4. Your Business Has A Lot Of Debt It is not uncommon for a business to have debts. Businesses with lots of debt typically struggle more on average than companies who have just enough or less than what they owe. They also tend to be riskier because their liabilities exceed their assets which increases the chances of investors losing money when lending them funds. This is because there's always an inherent level of risk involved as well as some degree of volatility. In addition to the financial considerations, high debt can also lead to a substantial decrease in morale and motivation for employees because they are likely feeling more stressed about their long-term security at work. Basically, having a lot of debt is not good for your company or its employees so it should be dealt with sooner rather than later by hiring an experienced consultant who specializes in this type of problem. 5. You Take Part In International Trade International business is highly risky, especially for small businesses. The biggest risk factor in doing international trade is currency fluctuations. For example, if the U.S. dollar drops significantly against another country's currency (e.g., the Nigerian Naira), then your goods and services become less valuable to that customer since they are getting fewer dollars per unit of their own local currency. This can happen even when you may not have changed the price at which you sell to them. This can be particularly problematic when international payments are due soon after a drop in exchange rates. That's because companies with outstanding invoices will find themselves under extreme pressure from banks or suppliers who want payment immediately rather than later because they know it'll cost more tomorrow. As such, it's always important to be aware of the risks that come with international trade, and take steps necessary to mitigate these risks. Summing Up If you own a high risk business, it's important to know what's involved in order to protect yourself and your staff. Being aware of these factors can help you take appropriate steps to avoid or prepare for them if they happen.High risk payment gateway  Things That Show Your Business Is High Risk   If you're a business owner, then you should know that there are certain things that could make your company high risk. If you don't think about these things beforehand, it's possible for them to damage your reputation and cause other problems in the future. Here are some of the indicators that can show if your company is high risk or not. 1. You Have A Short Credit History Some companies have High risk payment gateway and a short credit history. As a result, they can't be used as collateral and may be categorized by lenders as high risk. This means they might charge higher interest rates or require more stringent terms than what would otherwise be the case if you had a strong track record of managing loans. 2. Your Business Is Susceptible To Fraud If you're running a business that's very susceptible to fraud, then lenders will likely see it as high risk. For example, if you have an online retail cbd store that doesn’t have an elaborate Cbd payment processor, retailers might be warier of giving out loans because they know that this type of business is targeted by hackers the most. 3. You Don't Have Much In Savings Accounts If you don't have much in your Ecommerce merchant accounts, or savings accounts, lenders will likely see it as high risk. The reason for this is that if your business does not turn a profit and the loan goes into default or bankruptcy, then there won't be any funds available to repay the lender. 4. Your Business Has A Lot Of Debt It is not uncommon for a business to have debts. Businesses with lots of debt typically struggle more on average than companies who have just enough or less than what they owe. They also tend to be riskier because their liabilities exceed their assets which increases the chances of investors losing money when lending them funds. This is because there's always an inherent level of risk involved as well as some degree of volatility. In addition to the financial considerations, high debt can also lead to a substantial decrease in morale and motivation for employees because they are likely feeling more stressed about their long-term security at work. Basically, having a lot of debt is not good for your company or its employees so it should be dealt with sooner rather than later by hiring an experienced consultant who specializes in this type of problem. 5. You Take Part In International Trade High risk payment gateway International business is highly risky, especially for small businesses. The biggest risk factor in doing international trade is currency fluctuations. For example, if the U.S. dollar drops significantly against another country's currency (e.g., the Nigerian Naira), then your goods and services become less valuable to that customer since they are getting fewer dollars per unit of their own local currency. This can happen even when you may not have changed the price at which you sell to them. This can be particularly problematic when international payments are due soon after a drop in exchange rates. That's because companies with outstanding invoices will find themselves under extreme pressure from banks or suppliers who want payment immediately rather than later because they know it'll cost more tomorrow. As such, it's always important to be aware of the risks that come with international trade, and take steps necessary to mitigate these risks. Summing Up High risk payment gateway If you own a high risk business, it's important to know what's involved in order to protect yourself and your staff. Being aware of these factors can help you take appropriate steps to avoid or prepare for them if they happen.