Many merchants face problems in obtaining merchant accounts to process credit card payments and for ACH processing. This is not a new phenomenon, since new businesses emerge everyday, and it is almost mandatory to accept credit cards if you want to remain in business. However, let us make it clear that the problems are not in getting approvals for merchant accounts, but it processing payments where the card is not present and in acquiring high volume accounts, and obtaining cooperation for such services from banks and processors. These high-risk businesses are categorized as Mail Order, Telephone Order (MOTO) and internet online transactions and banks and processors group them as one single category.
The issue here is that for almost banks and processors, these merchants are a high-risk business, and they put a cap on the monthly sales volumes, so that the merchant cannot grow with the business. As a result, most such merchants apply with merchant services providers so that they can obtain a high-volume merchant account.
Acquiring a high volume merchant account is an important factor in aiding business growth, and it may produces disastrous results if you cannot accept credit card payments or ACH transactions by check. It is important that you find an able merchant service provider to work with, because your bank or present processor may provide you a high volume account, but they will impose several restrictions and unreasonable regulations. best high risk merchant account
The subsequent step for you is to work with merchant service providers to determine the processing capabilities you will receive. You must establish your needs, whether of a high volume account or of unlimited processing. Also, determine whether you will be given volume restrictions. The most important among the considerations is whether you need a local account or an offshore one. In some cases, you may be able to acquire a high volume account or an unlimited one from a domestic provider. However, if you are in the high-risk category, you will need to search for offshore account providers. Once you decide what is best, and if going with an offshore account is best for you, you need to search for a merchant account provider who deals specifically with offshore and high-risk merchant services.
Applying to any type o merchant service provider involves similar application procedures as with domestic merchant application, including fundamental business-related data, such as the current sales and the estimated sales volumes once you receive a high-risk merchant account. Once the application is submitted, the bank evaluates the risk they take by signing you on, which includes several aspects, of which projected sales volume is just one. They might even ask you if their risk will be minimal in he case that you can’t remain in business and have to cover chargebacks. Chargebacks, which can be due to customer satisfaction or fulfillment problems, also contribute to the determination of the limits and regulations around your new account. There are, of course, safer services and products requiring merchant cards or online check for banks to process. The most common high-risk accounts are required when merchants need to process credit card transactions where the cardholder is not physically present. These are, as mentioned earlier, MOTO or online sales businesses. Banks take on more risk while providing such accounts because the threat of fraud and stolen card payments is much higher, as is the instance of identity theft. It is a common misconception that high-risk merchant accounts are required for illegal services or for grey or black marker products. This is a false notion. Banks always perform a research on the merchants they serve, and will never accept any risk on such businesses and will not provide them with any kind of merchant services.
A true merchant account provider presents various merchant services like virtual card terminals, fraud scrubbing, multiple currency processing capabilities, direct bank merchant identification, third party collectors, 24 hour reporting, and the capacity to receive payments from all major credit cards like MasterCard, Visa, American Express, Switch, Discover, Solo and JCB. You and your customers, both, are offered safe processing environments by these in-house services provided by the merchant account provider. You must research thoroughly, however, because all merchant account providers do not provide these services and cannot handle you high volume accounts.
Most businesses these days require high-risk, high-volume merchant accounts so that they can keep up with current customer trends and expand their business. Choosing to work with merchant service providers is a good idea given the current card accepting services and online check transactions. You can ensure a long-term security and vibrancy of your business once you decide to work with a merchant service provider who has the requisite experience and reputation.