What things makes the Best High Risk Merchant Account?

Starting a business classified as "high-risk" can present many unique difficulties, most notably when attempting to establish an online presence by accepting payments electronically. High-risk industries include e-commerce, Travel, Forex, Games, Nutritional Supplements, Adult Services, and Subscription Services. Due to chargebacks, potential fraud, and increased compliance requirements, these industries can understandably face higher-than-average challenges compared to other businesses. A best high risk merchant account helps alleviate some of these challenges by allowing high-risk companies to have a dedicated payment processor. All providers in this space will not necessarily provide the same level of reliability, flexibility, and support; understanding what constitutes the best provider for a high-risk business should assist a company in finding a payment processing solution that helps the business maintain reliable payments while being able to continue to grow.

1. Approvals Rate for High-Risk Businesses

The best providers offer their high-risk customers the highest approval rates available. Many banks or traditional payment processors will turn away a high-risk company based on their perceived financial exposure level. The best providers have a proven record of successfully underwriting high-risk companies, as well as having access to acquiring banks globally, resulting in an increase in the likelihood of successfully processing payments for high-risk businesses, even if they've previously had difficulties due to account terminations, chargebacks, or limited processing histories.

2. Chargeback Management and Prevention

Chargebacks are of vital importance to all businesses considered to be high risk by some card networks. An excessive amount of chargebacks may lead to account termination, fines imposed by the card networks, and designation as a monitored merchant. A large number of high risk merchant services will provide tools that allow for effective chargeback management (for example: transaction monitoring, real-time email alerts when disputes arise) or chargeback prevention support. Advanced systems allow merchants to quickly react to disputes, reducing their chargeback ratio and allowing them to operate within the Card Network chargeback thresholds.

3. Accurate Fraud Detection and Anti-Fraud Security

Fraud detection/prevention is also a very high priority for many high-risk accounts. Some of the safest/high-quality merchant accounts for merchants classified as high risk will provide advanced security features, artificial intelligence/AI fraud detection, velocity checks on orders, IP filtering, and 3D secure card authentication. In addition, the best providers will develop and implement new fraud detection tools frequently to constantly protect against a variety of constantly changing fraud risks. Furthermore, by providing the highest possible levels of encryption and maintaining compliance with PCI DSS standards for data, the best providers make it difficult for online fraud to take place, thus protecting merchants' and their customers' financial positions.

4. Global Payment Acceptance and Multiple Currency Processing

Many high-risk merchant accounts support international payment processing. The best high risk processor accounts also offer global acceptance, enabling merchants in high-risk categories to accept payment worldwide in multiple forms of currency. Some of the best global high risk merchant processor accounts will provide certain features (e.g., local acquiring, dynamic currency conversion, and support for international cards) that allow merchants to increase their approval rates, improve customer experience when paying, and increase sales. Accepting payments internationally will enable high-risk merchants to expand into new markets while reducing their payment processing challenges.

5.  Price & Fair Fees 

Most Payment Processors (PPs) charge higher prices for high risk merchants. When selecting a processor, look for one with a transparent pricing model so that you know all costs up front. Reputable PPs will provide in writing all costs associated with your merchant account. This includes information about how to minimize costs from the deposit to chargebacks, and what your exact cash flow will be during setup.

6. Flexible Rolling Reserve Policy

Rolling reserves are common with the best high risk merchant account during payment processing because they protect against chargebacks. Your high-risk provider will typically require that you maintain a specific amount of cash within a rolling reserve until the transaction is fulfilled. For many merchants, the funds held within the rolling reserve can often create an additional liability for a short period (up to 30 days), during which time you cannot access those funds. As your business demonstrates increased stability and low disputes, you may be able to access your funds sooner.

7. Integrated Payment Gateways

An important factor when finding a high-risk provider is how well they integrate with your existing payment gateway(s). The best providers offer seamless integration between your e-commerce platform, API (application programming interface), and mobile payment processors. Providing a fast checkout experience, continued uptime, and customizable payment pages will increase conversions. Offering alternative payment methods (wallets, local payment options) will further improve customer convenience.

8. Dedicated Account Management & Customer Service

Merchant accounts for high-risk categories need lots of support from the providers who offer them. The top providers have dedicated managers that specialize in those industries and understand their customer's needs around payment processing. They provide technical assistance 24/7 and have a quick turnaround time for issue resolution. They also conduct ongoing performance reviews so that problems can be dealt with before they escalate into larger problems. Providing personalized support is essential for maintaining consistency with a customer's high-risk merchant account.

9. Compliance & Regulatory Compliance Expertise

High-risk industries are usually heavily regulated by local authorities and in some cases by the federal government. The best merchant account providers always keep themselves up to date on compliance requirements, including KYC, AML, and card networks. Their extensive knowledge will help the merchants avoid violations that could lead to monetary penalties or even the termination of the merchant account. Compliance support also builds a sense of credibility between the acquiring banks and the merchant's payment partners.

10. Scalable Infrastructure To Enable Business Growth

A high-risk merchant account will allow your company to grow as it grows. As the number of transactions increases, ticket sizes increase, and your product lines expand, your account should remain capable of supporting that growth through scalability (additional MIDs) and multi-gateway (not stressed) set-ups. You'll never stop processing as your company continues to expand.

Conclusion

When selecting a high-risk merchant account to work with, you want to ensure that you have a provider that will give you long-term reliability and security plus help you grow. Providers who offer high risk accounts should have high approval rates, good chargeback management, the most advanced fraud protection systems, global payment support (through gateways), clear and competitive pricing, and expert customer service. Partnering with the best high risk merchant account provider will help your company to develop effective solutions to payment challenges while protecting your business and allowing it to grow into the marketplace you are competing against.