About High Risk Credit Card Processing

About High Risk Credit Card Processing

In the merchant processing world, a lot of business types are considered to be “high risk.” If you’re one of these businesses, chances are you’ve been turned down by credit card processing companies in the past. Don’t worry. Not all is lost.

There are quite a few merchant account providers that are willing to help you accept payments. While few and far between, Choice Merchant Solutions specializes in high risk credit card processing and has been helping clients in the high risk space for almost a decade.

About High Risk Credit Card Processing

What you need to understand is that one processor may consider you high risk, while others may not. It depends on their bank relationships and underwriting guidelines. If the guidelines are strict in regards to industry types and chargeback ratios, there is a very good chance that you will not get approved. However, some have relaxed guidelines and have banks that “have an appetite” for your business type.

If your merchant provider specializes in high risk credit card processing, such as Choice, then you are in luck and your chances of approval are much greater.

Be aware of companies that don’t say they deal in the high risk industry spaces but can get you approved regardless. Often times your business will be “coded” improperly or coded as a different industry type to get your business. Once you start processing, it is highly likely that your account will get terminated and your funds will be held. We’ve heard hundreds of these stories, especially with companies like Paypal and Square.

What Rates Do High Risk Merchants Pay?

Unfortunately, high risk merchants do pay higher reserves and higher rates, but your merchant account is more secure with a high risk processor. Because these companies know they can accept certain business types, they identify them properly to the banks to avoid those shutoffs that were mentioned earlier.

Who Is Considered A High Risk Merchant?

  • Merchants with high chargeback ratios
  • Merchants with bad credit
  • Offshore businesses
  • Trial businesses
  • Businesses using questionable marketing tactics
  • Industry types that are considered high risk (see below)

High Risk Business Industry Types

The list below represents some, but not all high risk credit card processing industry types:

  • Travel Services
  • Timeshares
  • Travel Agencies
  • Hotels
  • Tobacco
  • E-Cigarettes
  • Smoke Shops
  • Liquor Stores
  • Dating Websites
  • Dating Agencies
  • Adult
  • Sex Toys
  • Strip Clubs/Gentlemen’s Clubs
  • Casinos & Online Gaming
  • Fantasy Sports
  • Entertainment
  • Offshore
  • Merchants Declined/Shut Off
  • Debt Consolidation
  • Credit Repair
  • Collection Agencies
  • High Ticket
  • High Volume
  • Nutraceuticals
  • Vitamins & Supplements
  • Pharmaceuticals
  • Call Centers
  • Telemarketing
  • Bad Credit
  • Bail Bonds
  • Loan Mods
  • Multilevel Marketing/MLM

Why Choice For My High Risk Business?

No other merchant account provider gives a wider variety of accounts and services. Both our seasoned team and bank relationships allow us to deliver low and high risk merchant services, chargeback mitigation, high risk business funding and product fulfillment.

Our prices have always remained competitive and our customer support leads the industry. We can help your high risk business profit – plain and simple. Whether you own a business that does business domestically in the United States, internationally or both, we can handle your high risk processing.

If you are interested in reaching out to us in regards to high risk processing, you can fill out our online form here or you can call us at 800-530-1193. We look forward to hearing from you!