High Risk Payment Processing

High Risk Payment Processing Solutions

Businesses in a growing number of industries have experienced difficulties in obtaining payment processing services. Different factors surrounding the business or the industry can prevent merchants from working with a general merchant services company. These businesses that have been applied at other processors only to be declined might want to consider partnering with a high risk payment processing service.

As a payment processor specializing in the high risk credit card processing and high risk e check industry, we can help.  Strong banking relationships allow Allied Payments to offer high risk merchant account services to many different industries.  Understanding many of the problems facing merchants, our programs are designed to help merchants reduce the costs of chargebacks and fraud.

What is High Risk Payment Processing?

Businesses can accept a variety of different payment methods including credit card, debit card or check. Payments can be accepted through the merchant's storefront or online using a payment gateway. Some types of merchants can experience trouble when applying for payment processing services. This can differ between industries, causing some businesses to find it nearly impossible to be approved for a merchant account.

Businesses that find themselves having problems obtaining payment processing services might consider partnering with a high risk payment processor. Processors in the high risk industry have different banks and relationships than traditional merchant services companies. This allows payment processors increased flexibility during the underwriting and risk management processes. These specialized services have opened the door for many medium to high risk business to obtain reliable and affordable merchant services.

The most common types of payment processing services used by high risk industries include:

The most common means of making payments, especially online, the use of debit and credit cards is growing year over year. Merchants approved for debit card and credit card processing can quickly add this service to their business. Guidelines for underwriting and risk can become problematic for some types of businesses, making credit card processing difficult to obtain. These problems have led to the creation of high risk credit card processing industry.

Many high risk businesses today find check processing a favorable means for accepting payments online. With lower fees than credit cards and chargebacks being more difficult, merchants have increasingly gravitated towards e check processing. New banking networks have reduced government controls on check services, allowing banks to become more liberal with underwriting. Many of today's highest risk businesses find checks the best means of accepting payments.

A truly unregulated currency, crypto payments allow merchants and consumers to remain completely anonymous. Merchants experiencing difficulty due to legality or other problems with their business have turned to crypto as a reliable alternative. While not as widely used as payment cards or checks, cryptocurrency is popular with various types of merchants requiring high risk payment processing services.

Who needs a High Risk Merchant Processor?

Businesses can need the services of a high risk payment services company for a variety of reasons. Depending on the types of products sold or the history of the business, any number of factors can affect the merchant services. Understanding some of the typical reasons might help merchants be prepared when applying for credit card processing services. Most merchants experience difficulty due to:

  • Industry: The products or services sold by the merchant are viewed as high risk. This is the most common reason for businesses needing a high risk merchant account.
  • Owner: The owner has blemishes in their financial history. Whether its a personal/business bankruptcy or being listed in the Terminated Merchant File (TMF).
  • Billing: Not all businesses operate the same. Merchants that charge customers using a rebilling/subscription model can face increased scrutiny from underwriters.
  • Chargebacks: A common problem that plagues many business in the card not present (CNP) and high risk industries.
  • Transactions: The types of transactions can affect the approval of an account. Whether the average ticket price in the thousands of dollars or the merchant is processing a significantly high number of transactions; businesses might require a specialized payment processor.
  • Business Reputation: During the underwriting process, many acquirers will look into the business itself. Checking that the business' values and practices are in line with that of the acquiring bank.
  • Industry Reputation: Some industries are shunned upon by acquiring banks due to the negative connotations that preceded them. Whether its firearms, adult or another type of business, merchants only option might be a high risk processor.

High Risk Payment Merchant Industries

Some of the most common types of merchants requiring a high-risk payment processing services include:

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