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Do You Need A High-Risk Merchant Account?

At E-Commerce 4 IM, we specialize in helping high-risk businesses secure merchant accounts that meet their unique needs and offer the specialized support they require.

Do You Need A High-Risk Merchant Account? | E-Commerce 4 IM

But during the holidays we often see business owners in an unusual quandary – they’ve spent most of the year as a low-risk merchant, but suddenly find themselves with several high-risk products for a short period. Perhaps you recently added a few new products to your existing store or you decided to launch a new venture to take advantage of the increased number of holiday shoppers. Can you simply send the funds through your existing merchant account? Or do you need something more?

The Purpose Of High-Risk Accounts

Banks have their reasons for refusing high-risk business partners, but the truth is that high-risk accounts have a purpose for the business owner as well. The short answer to the question above is “technically yes,” you can send high-risk products through your low-risk account – but you shouldn’t Once the reality of the high-risk vertical sets in, your merchant provider will inevitably notice the change. In a best-case scenario, you’ll be given a warning and possibly penalties and increased rates. In a worst-case scenario, your account will be reviewed and suspended in the middle of a holiday rush or even shut down without notice.

The purpose of a high-risk account is not just to answer a need that other providers won’t fill, but to provide merchants with a partner who understands their business and will not become gun-shy when the regular patterns of a high-risk business start emerging. Issues like an increased number of chargebacks, high-dollar orders, and large spikes and dips in sales can be low-risk red flags. You also won’t run the risk of being caught with prohibited products, since high-risk accounts are designed for such products.

How To Set Up A High-Risk Account

The best way to handle a sudden inventory of high-risk products is to set up a high-risk merchant account specifically for the sale of those items. You don’t need to completely switch merchant providers – you can continue to route your low risk merchandise sales through your existing merchant and only send the high-risk products through your high-risk account. This allows you to benefit from the protections of a high-risk merchant account without the inconvenience of reworking your existing financial relationships or paying more fees than necessary by routing all product sales through the same channel.

To do this, contact a company who specializes in high-risk payment processing. They can help you evaluate your needs and pair you with a processor who’s right for you, in addition to providing essential customer support. A good place to start is with calling E-Commerce 4 IM. We’ve helped many high-risk businesses who were turned down find a processor who would allow their businesses to thrive. Call us for more information at 1-800-570-1347.

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