What Qualifies as a High Risk Merchant Account?

by | Jan 25, 2017 | Credit card processsing

In the world of online business interactions – or ecommerce – the one thing that spells the virtual world’s superiority over the physical world when it comes to facilitating transactions is convenience. Never before has it been this easy for two businesses to send each other a comprehensive idea of each other’s inventories, come to an agreement on what each side of the business wants, and then facilitate that exchange safely through encrypted payment gateways and various different payment processors.

Yet while it’s impossible to argue that ecommerce isn’t convenient, not everyone can benefit from the myriad of perks that the Internet offers to the ecommerce sector. Namely, when it comes to moving money around safely, certain industries have to go a little above and beyond. These industries are dubbed “high risk merchants”, and high-risk merchant accounts through companies like eData Pay are designed to alleviate such risk, and make servicing these industries possible.

What are High Risk Merchants?

High risk merchants exist in a handful of unconventional industries commonly associated with payment risks, such as unexpected refunds or fraud on a customer’s part. Such industries include:

  • Adult entertainment.
  • Online gambling.
  • Nutraceuticals.
  • Offshore business.
  • MLM or business opportunities.

Why are they “high risk”?

Basically, as per Top Ten Reviews, businesses that are operating solely online and that have fewer assets at any specific geographic location are considered high risk; because if these companies go debunk, the bank has very little recourse at recovering any debts. In addition, businesses that have high rates of failure such as internet service providers, web-hosting services, online dating services, online auction sites, online casinos, adult entertainment both online and off, telemarketing, travel, are all considered high risk.

Yet, by obtaining a high-risk merchant account through Edatapay, you will work with experts and will be able to process payments, wherein several merchants utilize one account to minimize risk.

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