Is your business part of a so-called high-risk industry? Well, you may have unfortunately experienced the difficulties that come with finding quality credit card processing. High-risk businesses are those that are considered by merchant account providers to be too risky to service, the reason being that their sectors are associated with higher-than-normal chargeback rates or restricted and regulated items. Individual businesses can also be deemed high-risk because of factors like poor credit, inclusion on the MATCH or TMF (Terminated Merchant File) list for processing-related misconduct, or high-value transactions with no business history.
The four primary credit card providers – Visa, Mastercard, American Express and Discover – have lists detailing the businesses they consider high-risk, which merchant account providers use as bases, and add or remove industries depending on their own risk requirements. If your business or the industry you're in is considered high-risk, any conventional merchant account provider will be hesitant to lend you its services. So, unless you're fine with not giving your customers the option of making credit card payments, you'll need to look for a provider that offers high-risk merchant accounts.
Although it only takes a few minutes for a low-risk business to secure a credit card processor, the process isn't nearly that straightforward for high-risk merchants. Companies that offer easy set-ups, such as PayPal and Square, prohibit most types of high-risk businesses, and because of the many steps involved in the underwriting process, dedicated high-risk providers with instant approval aren't readily available.
Landing a proper processor may seem like a pain, but if you're in need of credit card processing services, it is crucial that you take the time to find a provider that will work with you. An internet-based high-risk merchant account forum will be a great place to start your search since it will give you the chance to view expert reviews and reports from users in your industry. Don't forget to ask questions yourself and visit the websites of the most praised providers to get even more insight into their services. Only fill out and submit the applications once you've gathered enough information about your prospective processors.
The ideal credit card processor is that which best suits the needs of your business, while also being considerate to your budget. Nevertheless, the merchant account providers below are popular enough among high-risk enterprises that you can be confident you're getting fair pricing, top-notch customer service, and excellent contract terms, regardless of your operation.
iZettle is a mobile-based credit card processor for chip-and-PIN cards. By giving merchants control over their processing activities via their smartphones, iZettle breaks down the typical barriers to entry that are common with traditional merchant accounts. The sign-up process is relatively quick and straightforward, and approved accounts get a free iOS/Android app and card reader. iZettle users only pay transaction fees on sales, which means you won't be charged any setup, monthly or PCI Compliance fees. Moreover, the platform offers month-to-month contracts with flat-rate pricing and no early termination charges.
Fidelity Payment Services is an organization that markets credit card processing services in the UK on behalf of global processors like First Data and AIB. Some of the company's services include countertop chip-and-PIN terminals, online payment gateways, virtual terminals, mobile payment processing and ACH processing. Although Fidelity has everything for all business sizes, it's particularly excellent for large, high-risk businesses that would like comprehensive feature sets. Pricing is customized according to the business type and size, as well as processing history.
Secure Trading provides high-risk merchant accounts with services like online payment gateways, virtual terminals, multi-currency support, and recurring billing. It's a great choice if you're a high-risk e-commerce merchant.