What Exactly is A High Risk Merchant Account?
If you do business online you may have heard the term, “high risk merchant account” being used from time to time. This type of merchant account is necessary for businesses who provide goods and services that some banks designate as high risk. Some of the common high risk businesses include online gambling, adult websites, online dating and some software sales companies. If you are involved in one of these industries, you should keep the following in mind when applying for a high risk merchant account.
Watch out for high fees
With these types of merchant accounts that some deem high risk, it is very important to watch out for high fees. Shop around and do a merchant account comparison to determine which provider can offer you the best rate. Rates may vary significantly from provider to provider, so it is very important to inquire about rates from multiple providers. At Vision Payment Solutions, we offer very competitive rates. While you may pay a bit more than a traditional type of business, you should not be taken advantage of based on the type of business that you own.
Necessary if you operate off shore
If your business is operating off shore, you may need to apply for a high risk merchant account if you decide to accept credit cards. While this is not always the case, it is important to research the need for this type of account before you decide to operate off shore. These types of fees can be significant so you need to make sure that you have all the necessary information before deciding to accept credit cards.
Before you decide to apply for this type of merchant account, it is important to make sure that you could not be approved for a traditional merchant account. If you are able to obtain a traditional merchant account your rates will be lower, but this may not be an option for you depending on your type of business as well as your credit standing. Vision Payment Solutions can help you with any questions you may have regarding high risk merchant accounts.
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