Low Risk vs High Risk Payment Processing
Are you looking for a low risk merchant account for your business? Banks and payment suppliers will assess the risks connected with your company and choose whether they can accept your application for payment processing.
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High Risk Vs Low Risk Merchants
Before you’re approved for a merchant account, payment processors will decide if you’re a low risk merchant. They’ll review your business details and determine if a reasonable risk is associated with your credit card processing. They’ll consider factors like how long you have been in business, your reputation, etc.
Payment processors will tag your company as a high risk merchant if:
- The industry you are in has a high chargeback ratio
- You are handling a substantial rate of fraud
- Your business is newer and doesn’t have a good reputation
- Your company lacks financial stability
- You, as a merchant, have poor credit
- Most of your customers buy months beforehand, and also the product/service is consumed after the fact
Payment processors will categorize your company as low risk when:
- Your company brings in less than $20,000 per month
- Your average ticket size is significantly less than $50
- You have a zero to low-chargeback ratio
- The business is in a low risk industry
- You are incorporated in a low risk state
Low Risk Merchant Account
If they consider you a high risk merchant, you may be charged a premium. Moreover, they can even refuse to open a merchant account for you. It all depends on the number of dangers involved with your brand, vertical, and history.
Open a High Risk Merchant Account
If you qualify for a high risk merchant account, expect to pay slightly higher fees. Banks use more resources and face higher risks when onboarding unique businesses.
But with a knowledgeable and respectable payment processor like Signature Payments, high risk retailers can enjoy the lowest possible rates and the best terms for high risk merchant accounts and credit card processing in the industry
Signature Payments talks to every business owner and gets to know how to cater to their specific business needs. Even if you’re high risk, you will find steps you can take to Reduce your risk:
- Reduce your risk of chargebacks with strong fraud prevention tactics
- Focus on generating stable streams of earnings and Prevent occasional streams of big earnings
- Demonstrate you’re able to keep up with high trading volumes
As a high risk merchant account provider, Signature Payments guarantees safe credit card processing for eCommerce companies and brick-and-mortar retailers globally. If your business is precisely what conventional processors and banks classify as needing a high risk merchant account, turn to Signature Payments for quick and safe credit card payment processing.
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