Online commerce is booming, but not all businesses are created equal. Due to their nature, some industries are classified as “high-risk” by traditional payment processors. This can include everything from travel agencies to adult entertainment to online gaming. These businesses need help securing reliable payment processing solutions, often encountering higher fees and stricter underwriting criteria.
This is where high-risk merchant account providers come in. They act as intermediaries, using their connections to various banks and processors to choose the ideal one for your company. The top high-risk merchant account service companies ready to assist you are listed below.
Top High-Risk Merchant Accounts of 2024
We have conducted a thorough methodological assessment of many merchant account providers to assist you in identifying the top five high-risk merchant account providers. We considered a clear price structure, contactless payment, and invoicing options, the availability of sophisticated services like offshore account assistance and chargeback tracking, and actual user evaluations on other websites.
1. PaymentCloud
One of the simplest high-risk merchant account providers to work with, PaymentCloud offers top-notch customer support. You may use this account to process payments by POS, mobile, or online checkout using credit cards, ACH, eChecks, or cryptocurrencies.
When you register for a free credit card processing account with PaymentCloud, you will receive a free retail or mobile EMV terminal if you require hardware to swipe or input cards.
2. Host Merchant Services
Electronic Merchant Systems and Host Merchant Services (HMS) collaborate to offer high-risk merchants services. You may use the service to collect payments online, in person, or through a mobile point of sale (POS) using credit cards or ACH. Businesses who process $10,000 or more in sales per month would benefit greatly from Host Merchant Services.
3. SMB Global
SMB Global offers credit card, ACH, and eCheck payment processing to high-risk retailers throughout the globe. Travel and other high-risk businesses are its areas of expertise. It finds the best transaction rates for your business by collaborating with over a dozen global banks. You can also opt to use Network Merchants Inc. or as your payment gateway, depending on your needs. If you own a permanent or mobile business and have to accept payments in person, you may be eligible for a complimentary EMV terminal or mobile reader. This is a useful addition, as card scanners on its own may easily cost more than $100.
Benefits of Using a High-Risk Merchant Account Provider
- Bank Matching expertise: Navigating each bank’s underwriting requirements is essential to match your business with the proper bank. Due to their existing contacts with several banks, high-risk merchant account providers increase your chances of acceptance.
- Saves Time and Resources: Applying for and conducting research for a high-risk merchant account can take a lot of time. Providers take care of this for you, giving you more time to manage your company.
- Access to Specialist Knowledge: Specialized knowledge is necessary to comprehend the complexities of high-risk merchant accounts. Providers are knowledgeable about industry best practices and can help you along the way.
- Service Fee (Generally Free): Reputable suppliers usually get paid by the banks they refer you to, not by you. When suppliers demand upfront costs, use caution.
How to Pick a Service Provider for High-Risk Accounts
You should carefully study the contract before selecting a payment processor because each bank and payment processing platform is unique and has various rules for merchants that they deem high-risk. Remember these factors when searching for the top high-risk merchant account service provider:
- Higher costs: Vendors typically charge greater fees to compensate for the risk of providing your firm.
- Your credit score matters: A company owner’s or business’s poor credit score may influence the likelihood of approval for a merchant account. If you are being turned down for merchant accounts, you may need to improve your credit score to be considered again.
- Which customers does the vendor accept? Only some companies are accepted, even by account providers focusing on high-risk retailers. Search for suppliers who can precisely address your needs. If your firm is offshore, you need better credit or run a hazardous enterprise.
Conclusion
Deciding on a high risk merchant account service provider takes a mixture of due diligence and communication. You can communicate directly with the merchant account service provider through email or over phone. Make sure to cross those providers off your list who don’t respond your communication in time.
Trust your first instincts when selecting the merchant account providers. Analyze your communication and decide whether they are suitable for your needs or not. Ask as many questions as possible about the high risk merchant accounts provider’s processor and banks and evaluate their responses to choose the best one.
