High Risk Merchant Solutions

Being classified as a high-risk merchant by your credit card processor may sound frightening, but it is not the end of the world!  Read on to discover what being a higher risk merchant means for your business.

 

Why is My Company "High Risk"?

Being labeled a high risk or higher risk merchant has the unfortunate effect of sounding as though card processing agents are judging your business, ethics, and overall worth.  This simply isn't true! 

 

Processor services want your company to do business with them, but they also need to protect themselves against loss.  In order to do this, they must assess all applicants and decide whether or not they're engaging in risky business.  Companies which accept credit cards in person are typically considered low risk businesses; it is very difficult for a card holder to dispute a transaction when the business owner can produce a signed credit card receipt.  Other product and service providers often present a higher risk to the credit card processor.

 

Various businesses are classified as high risk merchants because they process transactions that have a higher rate of being disputed by the card owner.  Though the highest risk classification can include adult entertainment and other businesses of a questionable nature, this classification is not in any way a personal judgment.  It is simply a way for credit card processors to assess the risk they are taking when they agree to service your company.

 

Merchants that are commonly referred to as high risk include the travel agencies, hotels and travel agencies, MLM or multi-level marketing companies, collection agencies, adult entertainment and adult products, on line dating, web-based pharmacies, and other eCommerce businesses which accept credit cards over the phone and online rather than in person, also known as a Mail Order Telephone Order merchant service.  If your company falls into one of the above categories, you can expect to pay more for credit card processing services.  However, AdvantageProcessors.com can help to find you the best rates for your high-risk merchant account.

The Travel Industry and High Risk Credit Card Processing

If you operate and travel agency or hotel, it is likely that your business will be considered a high risk for credit card processing services. Of course, being able to accept payments by Visa, Master Card, American Express and Discover is critical to your ability to do business effectively.  Most people cannot afford to pay cash for their travel arrangements!  Unfortunately, because your customers will not be receiving a tangible product and will often be making their purchases by phone, you will probably have to pay an elevated rate for your merchant account.  However, you can trust Advantage Processors to secure the cheapest rates out there for your travel-related business.

High Risk Processing for MLMs

MLMs, more formally known as multi-level marketing or network marketing businesses represent an ever-growing aspect of the economy.  There are many legitimate companies which operate in this way, but illegal pyramid schemes and unethical MLMs have done serious damage to the reputation of their honest and ethical counterparts.  Getting a discount rate on credit card processing can be a challenge for fledgling network marketing corporations.  However, by operating your multi-level marketing company in an ethical fashion, you can avoid charge backs and build a solid relationship with your merchant service provider.  AdvantageProcessors.com would be happy to help you get started and grow your network at a rate that leaves you plenty of room for profit.

Adult Entertainment and Dating Site Credit Card Processing

We are pleased to offer merchant solutions for retailers of adult products, as well as adult entertainment and online dating.  These businesses pose a higher risk to credit card processors for several reasons.  The first is that they, like many other industries, process credit cards via the web.  Without a receipt signed by the card holder, your company will have a difficult time disputing a contested charge.  Adult oriented products and services can also be a source of embarrassment or deceit, which means that a customer may initiate a charge-back to avoid taking responsibility for his or her purchase.  Advantage Processors would be happy to work with your adult-oriented business in order to get you a great rate on credit card processing services.                 

Higher-Risk Merchant Solutions for eCommerce

Online pharmacies/vitamins, web-based retail businesses, and Internet companies offering services or products are typically treated as high-risk merchants when it comes to setting up an account with a credit card processing agent.  Though being classified as high risk has its drawbacks, doing your business on line can be a benefit to you in many ways.  When it comes to credit card processing, one of the biggest advantages for web businesses is that they do not need to accept credit cards in person via a credit card machine. Instead, they can choose to use an online credit card processing service -- a huge savings when it comes to leasing or purchasing card swipe equipment.  AdvantageProcessors.com is pleased to offer a merchant solution for internet credit card processing.  

Options for Every Merchant

We understand that every business is unique and will require a specific array of merchant services in order to be successful.  When you are ready to begin, click here to apply now for a merchant account and begin your journey as an entrepreneur.