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High Risk Businesses: Keep Your Merchant Account Stable

Why working with a payment processor that specializes in high risk is important to make your merchant account stable

If you are operating an e-commerce business, the chances are good that you already fall into a category the banks consider high risk. While it is often a struggle for high risk business types to get a merchant account at all, keeping that merchant account healthy and stable can be just as tricky. At E-Commerce 4 IM, we have been helping high risk merchants with their credit card processing needs for many years. Our clients’ successes demonstrate one important fact: if you want to make it as a high risk merchant, you need to work with a payment processor who specializes in high risk businesses.

Why is my business “high risk,” anyway?

It’s not you—it’s the product you sell and the bad guys who took advantage of the banks in the past. When you find out that your great venture idea is considered high risk or falls into the bank’s list of “prohibited” business types, it can be tough not to take the news a bit personally. After all, you pay your bills on-time, you value your clients and partners, and you’ve been forthright and honest with lending institutions. The problem is, not everyone is a scrupulous as you; the fact is that online businesses experience higher rates of bankruptcy and chargebacks than do many of their brick and mortar counterparts. It is merely part of the landscape that the banks have to consider.

There are certain business types that the banks regard with particular caution. These “prohibited” businesses include firearms, nutritional products and supplements, affiliate sales and multi-level marketing, e-cigarettes, adult retailers, and weight loss products. Additionally, merchants who trade in expensive, high-end electronics are also considered to be high risk.

Bad things can happen without proper advice

If you run a high risk enterprise, you probably needed some help in the form of outside help to establish your merchant account in the first place. Getting that merchant account to process credit cards is just part of the equation.  If you process tickets that are too high, go over your monthly merchant account volume, or suddenly incur a ton of chargebacks, your bank could swiftly move to suspend your merchant account. In the e-commerce world, that essentially means that you are out of business; without a way to process credit cards, you can’t sell products. Your customers will go elsewhere and might never return.

Running into problems with your merchant account can mean more than angering your customers or having your income delayed. If you experience excessive chargebacks or fraudulent charges, or if your account data is compromised, your business could end up on the dreaded MATCH list. If you are on the MATCH list, getting a new merchant account could be a tough (and expensive) proposition.

The benefits of working with a high risk payment processor

You can avoid all of those bad situations by working closely with a high risk payment processor. Not only can a high risk payment processor help you get a merchant account at competitive rates, but they can help you keep that account stable as well.  A high risk payment processor can help you determine what realistic highest ticket and monthly volumes are for your type of business, they can ensure that your website is up to the most current SSL certificate standards, and the really good payment processors will help you institute rock solid chargeback mitigation schemes. These are all ways that a high risk payment processor can help you not just survive in the e-commerce world, but thrive.

Let E-Commerce 4 IM help you

When it comes to your merchant account and credit card processing issues, you can’t afford to go it alone. Let E-Commerce 4 IM put our experience to work for you. Contact us via our website or call one of our specialists at 1-800-570-1347 today. No matter what size of business you run, E-Commerce 4 IM can help you find the credit card processing and merchant account services you need to succeed.

High risk payment processor can help avoid bad situations that a high risk businesses may face like increased monthly transactions, excessive chargebacks and fraudulent activities

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