About High Risk Merchant Accounts & Offshore Merchant Account

Let’s Understand The High Risk merchant

When Merchant Business is established and applies for a payment gateway at the Bank, they get approved or disapproved from the risk departments considering the business to be high risk business or Low risk business. There are few reasons why any business can be considered as a high risk business.

Some of the risk factors that make a business HIGH RISK are as follow:

• You have lost your previous merchant account due to high chargeback ratio.
• Questionable sales and marketing tactics
• Potential legal and financial liability
• Your credit is really bad.
• The industry is known for excessive chargebacks or fraud incidents
• Trial continuity business
• Previous credit card processing is not good enough
• You’ve been branded as a terminated merchant (TMF).

It is important to note, that this merchant account categorization is based on your business’ industry, regardless of your individual businesses’ track record. Additionally, the high risk category includes businesses who have been dropped by a previous credit card processor, businesses that are on the MATCH or TMF list, companies whose owners have bad personal credit or low credit scores, or merchant account businesses who are based outside the US.

Common High Risk Merchant Account Business Industries

A high chargeback history, a startup, or high frequency or high average tickets can be considered high risk on an individual basis, the majority of high risk businesses are labeled as such by the industry they operate in.

High-risk Industries Include: Document Preparation, Downloadable Software, Antiques & Collectables, Educational Software, Electronics Business, Extended Warranties, Auto Transport, Businesses with Bad Credit, Computer Hardware.

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Are You Considered a Low Risk Merchant Account In USA

Understand the Low Risk merchant

Low Risk Category before you apply it at the bank for a merchant Account because merchants in our payment processing world are categorized under low-risk, medium-risk, and high-risk categories. There are a number of points or reasons concerning which any business can be classified as Low Risk or high risk or medium risk Business and for an example while reviewing the business it is reviewed that how much risk is involved in the business, what is their risk level, which is the country wherein they got incorporated and their processing history etc.

Features of a Low Risk Merchant Account

• Merchant account to accept ACH, eCheck and credit card payments
• A merchant account that provides an opportunity for real-time processing of payment
• Merchant account for secure and easy processing of payment
• Merchant account for internet merchants to facilitate website credit card processing
• You process less than $20,000 per month
• Your average ticket size is less than $50
• You have a low chargeback ratio
• You operate within a low risk industry
• You are incorporated in a low risk country
  

Low Risk vs. High-Risk Merchant Accounts

A  high-risk merchant account provider, it is important to know if your business might be classified as high risk. There are many differences between a low risk merchant account vs. high risk merchant accounts business when it comes to setting up merchant accounts, so if you are not prepared you may find yourself having trouble getting the services you need. With this in mind, consider the differences between low risk and high risk companies and you will be better prepared to move forward.

Common Low Risk Industries

When you choose Merchant Stronghold for your Low Risk Merchant Account you get an Affordable, Point of Sale or E-Commerce Solution with Fast approval and you can start receiving payments from almost all major cards and from Checks as well. You not only get these things but you get a dedicated customer support and assistance for the desired growth of your business.

Best Telemarketing Business Expect From Merchant Account Services In USA

The world is getting closer and closer to the day when we talk about online business and telemarketing. It has become far easier for customers to buy or order things online irrespective of their geographical location until and unless the merchant is high-risk account holder. The marketplace has extended beyond limits and instead of buying a shop/store and sitting there throughout the day to sell your product and services, all you need is a system with the website to market your product. Nowadays, you can buy things online or through telemarketing at your convenience, without wasting your time and be being present physically in the shop. Now let us understand the term telemarketing.

Telemarketing Business

It is a method where you can market your product directly either over phone or web conferencing, which is scheduled on a call. In this marketing method, salesperson tries to convince prospective customers to buy a product or service that business is providing over the phone or during the conference. For operating such type of business and carry out financial transactions (where most of the transactions are carried out through credit card), business or merchant needs a merchant account.

Merchant account

It is a type of bank account, which is required to conduct financial transactions by various methods; accepting payment through credit or debit cards or by other means. The merchant account is created under an agreement between the business owner and the issuer bank for the settlement of payment done via cards (card transactions). A merchant account is essential for high-risk merchants and is commonly called high risk merchant account. In other words, a high-risk merchant account is an account for processing credit card payments, where the issuer bank has classified the merchant or business as high-risked.

High-risk Merchant

Next thing that comes to our mind is what is the meaning of a high-risk merchant. Issuer bank defines whether a merchant account or the business is high risk or not depending on the number of chargebacks and the type of industry. High-risk merchant in telemarketing business faces a lot of struggle in getting approval for a merchant account, but if they succeed in getting one, it will enhance the sales, as they will be able to accept credit card payment from their customers present all over the world.

Advantages of merchant account service

• If a merchant gets approval for a high risk merchant account, a wider range of support service is given to the merchant for a smoother and efficient workflow. One of the main services provided is virtual terminal. It is proven to be very beneficiary for high-risk merchants.

• Once the merchant account is approved, a telemarketer will not only be able to accept the payment through credit card but also, do financial transactions telephonically.
• It will help you bring the customers around the world under one roof as it will allow them to accept all the major currencies and credit cards.