1. What is a high risk merchant account?
Banks classify a business as a high risk merchant account for several reasons. The most common reason for a high risk merchant account classification is if the business type statistically generates a greater number of chargebacks. Chargebacks represent contingent liabilities for banks resulting in possibility of risk of financial loss. Other reasons for a high risk merchant account classification are rapidly escalating payment processing volumes, high average tickets, and subscription billing.
2. Does a high risk merchant account classification mean paying higher rates for payment processing?
Not necessarily. If a business has processing history demonstrating the successful management of payment processing, with low chargeback ratios, high risk merchant account processing fees can be quite similar to standard risk categories. This is particularly true for high volume, high risk merchant accounts.
3. What is involved with applying for a high risk merchant account?
The application process for a high risk merchant account is simple. You fill out a high risk merchant account application form and submit the supporting due diligence documents.
4. How long does it take to approve high risk merchant account?
Approval for a high risk merchant account takes 3-5 business days from the time the application and supporting documentation has been received.
5. How much does it cost to apply for a high risk merchant account?
Applying for a high risk merchant account is free. There is no cost and no obligation to you. Be wary of companies that charge you for applying for a high risk merchant account. Some companies make money on application fees but never deliver the promised account.
6. How much payment processing is required to apply for a high risk merchant account?
The minimum processing volume per month to apply for a high risk merchant account is $50,000. No start-up companies are accepted.
7. How much payment processing can be done through a high risk merchant account?
High-volume, high risk merchant accounts are our specialty. You can process as much as you need. And, the more you process, the lower your rates will be.
8. Are reserves required on high risk merchant accounts?
Reserves may or may not be required, depending on the type of business, processing history, and other underwriting criteria. If reserves are indicated, they generally range from 5-10%. Reserves can be renegotiated after processing history is established.
9. Where are the banks for high risk merchant account located?
Acquiring banks for high risk merchant accounts are located in a many different countries. All the banks are well capitalized Tier 1 financial institutions. Your payment processing is completely safe, and secure. You can establish high risk merchants in multiple jurisdictions.
10. What are the settlement times?
Settlement times depend upon the jurisdiction of the acquiring bank and range from daily to weekly settlement.
11. What type of fraud protection is available for high risk merchant accounts?
Superior fraud fighting weapons are included with every high risk merchant accounts. Hundreds of cascading rules, filters, and other tools enable merchants maximize sales while minimizing risk. You can customize and fine-tine fraud parameters to your meet your requirements.
12. Is a virtual terminal included with the high risk merchant account?
Yes. Virtual terminals are a standard feature with all with high risk merchant accounts. In addition to ecommerce transactions, you can accept orders by phone, fax, or mail.
13. What about recurring billing?
Recurring billing is standard on all high risk merchant accounts. You can establish recurring payments based on time, frequency, or usage. Recurring billing is perfect for subscription and membership sites.
14. How does the high risk merchant account interface with a website?
Website integration via API is a simple and elegant way to interface with your website. Technical help is available free if needed.
15. Is multicurrency processing available?
Yes, multicurrency payment processing is a standard feature on all high risk merchant accounts. Allowing buyers to pay in local currency is an easy way to increase sales from international customers.
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