5 Tips for Working with a Merchant Account Provider if Your Business Is High Risk



Your business may be considered “high risk” by a merchant account provider for any number of reasons. Most commonly, it’s because your company is in what is considered a high-risk industry or you have a greater likelihood of incurring fraud, chargebacks or financial failure.

Whatever the cause, there are strategies you can adopt that make it easier to successfully work with your merchant service provider in order to maximize your profits.

1. Honesty Is the Best Policy

Even if your company falls into the high-risk category, don’t despair. You can still find a merchant account provider who can meet your needs and furnish you with a payment gateway for your customers. You don’t need to hide the facts about your business from your potential vendors. In fact, doing so is foolhardy. Inevitably, they will find out the truth, potentially via an unpleasant audit. Disclose the facts throughout the process, and you will find a compatible partner.

2. Demonstrate That You Have Capital Resources

The main reason that providers shy away from businesses like yours is fear. They do not want the baggage you carry to wind up causing them financial losses. The more that you can show them that you are well-heeled and stable, the more likely they will be to accept you as a client. If you lack capital, furnish merchant account providers with a full and accurate record of your past processing history to demonstrate how you have dealt with payments in previous months and years.

3. Request an Unlimited Transaction Volume

One of the ways merchant account providers try to minimize their risk when dealing with businesses such as yours is to require you to abide by preset limits on the amount of transactions they will process for you. Should you exceed that number, the vendor can charge you a penalty. That’s the last thing you need in the event that your business does well and you begin making higher profits.

4. Seek a Trusted Provider and a Backup

The nature of high-risk businesses is volatile, and the same goes for the merchant service providers who work with you. There is always the chance that your company will terminate your service if, for example, you have too many chargebacks. Because enlisting the services of one of these companies is vital if you want to continue accepting payments, make sure you work with a trusted provider who understands the risks, and always look for a backup. One company that is well known for working with specialty merchants in this category is Humboldt Merchant Services.

5. Review Every Three Months

In the high-risk credit world, a lot can change in a quarter of a year. Most notably, you can develop a substantial payment history that you can then use to renegotiate the terms of your merchant service provider contract. Don’t assume that nothing can change in April just because terms were a certain way in January. Keeping the lines of communication open and your best interests a priority should always be your prime strategy.

If your business is legal and stands to make money, there definitely is a merchant services provider that can meet your needs. Due to the nature of your business, the search may need to be longer and more thorough. Even so, the end result with the right partner can lead to a productive relationship enabling you to seamlessly process customer payments with the minimum of extra fees and restrictions.