high risk merchant account


8 Best Practices to get approved For A High Risk Merchant Account

If you’re a small business owner, then you know that it’s important to accept credit cards as payments. This allows your customers to pay you in the way that’s most convenient for them. 

However, if your business is considered high risk, then finding a merchant account that will work with you can be difficult. This blog post will discuss what it means to be a high-risk merchant and how you can create an account that’s perfect for your business.

Follow these tips, and you’ll increase your chances of being approved for a merchant account.

What is A High- Risk Merchant Account?

A high-risk merchant account is a specialty service for businesses with an unpredictable flow of monthly cash receipts. A business that falls into this category is one that does not have fixed or consistent monthly revenue or a fixed number of transactions per month, such as an off-site catering company that provides services to many different companies and organizations. A high-risk company might also be seasonal and rely on only a few months out of the year to generate revenue, such as a Christmas tree lot.


High-risk services offer a level of flexibility that is not offered by standard merchant account services. Because a merchant account service for high-risk merchants is not governed by the same fixed regulations as one for a standard business, it can offer more options to the merchant and allow them to customize their service to fit their specific needs.

high risk merchant account

What Should I Look For In A High Risk Merchant Service Provider?

1. FLEXIBILITY:  High-risk merchant services should offer a wide array of transparency, transaction fee and tax options, monthly payment schedules, and multiple account types to meet a variety of needs, including cash management, and other features that can be customized to the merchant’s needs.


2. RISK MANAGEMENT: A good high-risk service should be able to provide merchants with a plan for handling risk during their relationship with the service. They are likely to have very different methods and procedures for processing transactions than what you would expect from a standard merchant account provider.


3. ECONOMY: A high-risk merchant account should allow the merchant to run several different accounts and keep track of expenses, business structure, and cash flow simultaneously. This gives you the most comprehensive record of your business.


4. SUFFICIENT SUPPORT: A high-risk service provider should be able to provide enough support for merchants to get their accounts set up and running, even if there are inconsistencies or uncertainties in the business’s cash flow or monthly revenues.


5. THIRD PARTY PAYMENT PROCESSING: Many high-risk companies prefer to use a third-party processor for transaction processing. This can help their business stay honest in the eyes of their customers, as it creates a level of transparency that is hard to achieve through one’s own internal bookkeeping.


6. SPECIALIZED ACCOUNT TYPES: A good high-risk service provider should offer a variety of account types, including virtual accounts and cash management accounts, which will help you streamline your business operations.


7. ADDITIONAL BILLING TOOLS: A good high-risk account may offer bill-by-phone, online ordering, and online invoicing.


8. OTHER SERVICES: A good high-risk service provider should offer extras such as an electronic funds transfer service, which can help you keep track of your cash flow and send payments as needed.


9. TAX REPORTING: Depending on the company, you might also need to be able to prepare tax returns.

high risk merchant account

How do i get approved for a high risk merchant account?

1. Have a clear understanding of what the high-risk services and account will entail.

2. Have an accurate, set-up and business plan that clearly defines future cash flows and cycles.

3. Have a plan for managing risks, such as establishing multiple passwords, sharing with another employee or staff member, storing information and other risk mitigation measures in place to handle tricky situations.

4. Give the service provider your monthly costs for overhead to determine if it is worth their time to process your type of business as a high risk one.

5. Have everything in writing.

6. Build trust through communication, transparency and honesty.

7. Do not rely on the service provider to fight off risk measures or fees by themselves and learn to manage your finances yourself.

8. Have a strong relationship with the service provider and come to them with all issues first before contacting a different service provider. Misunderstandings  can arise from not communicating early enough in the process!

Is a high risk merchant account right for me?

High-risk accounts are not for everyone, but if you qualify and your business is structured in a certain way, you can get approved for one. Before getting involved with a high-risk service provider, make sure you understand what the differences are between standard services and high-risk ones. Also, learn about the specific requirements of different types of companies that might qualify for a high-risk merchant account before applying.

If you’re a high risk merchant, finding the right merchant service provider is essential to the success of your business. Look for a provider that offers transparent pricing, robust fraud protection, and personalized support.

Following these tips will help you get approved for a high risk merchant account so you can start processing payments and growing your business.

Do you have any questions about high risk merchant accounts?

Book a consultation with us and we’ll be happy to answer them.