How to create a high-risk merchant account?

by  | Jul 13, 2021 | Merchant account 

 

Mainstream banks consider some types of businesses ‘high risk’. This can be for a variety of reasons and can make setting up a merchant account to take card payments in the regular way more challenging. However, it’s not impossible. Specific high-risk merchant accounts exist for this exact purpose – and expert-led services like those at EMS Global will make setting up a high-risk merchant account for international trade a breeze.

Don’t let those hurdles stop you realising the full potential of your business and harnessing the power of online card payments. Here’s how to create your own high-risk merchant account…

What is a high-risk merchant account?

Mainstream account providers consider some types of business ‘high-risk’. This can result in regular banks declining your application for a merchant account to process card payments, or even terminating an existing one you have. A high-risk merchant account is created specifically for businesses associated with this level of risk, providing such companies with the ability to take and process secure card payments.

Mainstream account providers consider some types of business  ‘high-risk’. This can result in regular banks declining your application for a merchant account to process card payments, or even terminating an existing one you have. A high-risk merchant account is created specifically for businesses associated with this level of risk, providing such companies with the ability to take and process secure card payments.

What types of businesses are considered high-risk?

There are multiple factors that can contribute towards a business being deemed  ‘high-risk’ to banks. It could be due to the location, for example, for an offshore merchant account, or sometimes, Sometimes, a business can be considered high-risk simply because it is a startup. Often, it’s also because the company operates in a high-risk industry where fraud is prevalent or there are typically a lot of chargebacks incurred.

Some of these types of businesses include:

  • Payday loans
  • Online gambling
  • Telemarketing companies
  • Bitcoin mining
  • Sports betting
  • Travel and holiday rentals
  • Cannabis and CBD eCommerce
  • Pharmaceuticals
  • Pre-paid calling cards
  • Pre-paid debit cards

Select the best high-risk merchant account provider for your business

Thankfully, there are many providers which specialise in high-risk merchant accounts – and the one which is the best fit for your business will depend on your industry and needs. Some of the best in the UK include Worldpay, which is great for gambling businesses, and Instabill which is a good option for travel agencies.

Compare quotes

The next step in creating your high-risk merchant account is to compare quotes from different providers. Every account provider will have fees associated with the account (and these are usually higher with high-risk accounts than mainstream ones), so it is wise to research fees and quotes from a selection of providers to find the best option for you.

Apply for a high-risk merchant account

When you have researched and found the best account option for your business to process payments, you must apply to the provider for a merchant account. When operating a high-risk business, it can be a huge help to use a service like EMS Global to negotiate and create the account with the provider on your behalf: this is because these professionals have years of trading experience and existing relationships with account providers – an invaluable skill to have when selling ‘risky’ businesses.

Use EMS Global for a stress-free setup

Take the stress out of having a high-risk business by allowing EMS Global to create your merchant account for you. Send us an email today for a free consultation as to how we can help your business accept card payments – no matter the industry – today.

Set your business up for trading in the EEA with EMS Global’s expert global trading services, which can set your company up with becoming EEA incorporated, a UK-registered IBAN number, European trading offices and more. Get in touch today for a free consultation, and to discover how EMS Global can help you seize European eCommerce opportunities.

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