It is planning and preparation. To open a high risk merchant account, there are special payment processing accounts reserved for those companies banks consider higher risk due to business type, volume, or chargeback history. Determine. Will your business be a high risk business. Businesses most commonly categorized as such include online gambling websites, CBD oils, subscription services, travel agencies, and adult entertainment.
Finally, assemble documents such as business licenses, statements of processing, bank statements, and fiscal reports of stability. A solid fraud prevention strategy and business strategy will add strength to your application.
Acquire payment processors with high risk business experience. Do not only consider the rates of processing but instead review contract terms, customer service quality, and compatibility with your current systems.
Be open in your application about your processing history and business model. Lying can result in later account termination. Plan for higher rates and more stringent terms than regular merchant accounts – reserves, rolling reserves, and longer contract commitments.
Once your application is submitted, the underwriting process is usually 1-2 weeks. Once approved, put strong anti-fraud precautions in place to keep chargebacks low, which could jeopardize your account status.
With Trinity Consultings realistic expectations and adequate preparation, having the capacity to obtain a high risk merchant account can bring your business the payment processing ability it requires for its own long-term sustainability.