Payment processing can prove to be one of the big obstacles for a business. This is especially true for companies classified as high-risk merchants. Some of the reasons that certain businesses are classified as high-risk merchants are the convoluted rules and federal legislation that surround the goods or services they deal in.
In this regard, payment processing for insurance companies can be helpful.
You might have noticed that big payment providers, including American Express, MasterCard, Visa, PayPal, Stripe, Square, and Shopify, won’t accept credit cards or online payments from high-risk businesses. As a result, these businesses must seek an electronic merchant system that supports high-risk merchant accounts.
A high-risk merchant account is an echeck payment gateway account for companies that banks deem to be high-risk. Since high-risk companies are more likely to experience chargebacks, they must pay higher rates for merchant services.
The bank may place a rolling reserve on your account if your company has a high risk of chargebacks or if your account history shows a lot of chargebacks and refunds. It’s the amount of money set aside to offset the risk of chargebacks or theft.
These businesses are classified as high-risk merchants because they work in a high-risk market that includes safety and health risks as well as a slew of legislation from regulatory agencies, including the (FDA) Food and Drug Administration and the FTC (Federal Trade Commission).
Here are some general characteristics of a high-risk retailer. However, keep in mind that they can vary greatly depending on the guidelines of a particular payment processor:
● Monthly sales volume of more than $20,000
● The average credit card charge exceeds $500.
● Excessive chargebacks with an unsatisfactory credit history
The travel industry is an example of a high-risk business, as there are several factors that can cause cancellations of tours at the last moment. This typically results in a large volume of chargebacks from consumers.
Gambling, forex investing, and adult-themed websites are some of the other examples. Chargebacks can occur in a variety of industries and business models. So, don’t worry, as we have got your back!
High-risk merchant networks, such as Premium Payments, are the safest options for high-risk merchant payment collection. They have high-risk merchant accounts with credit card processing, flexible payment solutions, online payment gateways, property management payment processing solutions, and other services.
Furthermore, these systems allow companies to provide a variety of payment options to their clients rather than limiting them to cash payments. Be sure to work with a high-risk merchant service that is competent and capable of adapting to your company’s needs. Allow Premium Payments to be the answer to your company’s payment processing worries!
Premium Payments provides high-risk merchant account services at the most affordable rates, as well as the highest customer service and maintenance. Premium Payments is a full-service provider that also provides Chargeback Security, Check Processing, Crypto Payments, Payment Gateway, Online Payment Processing for Nonprofits, and Business Funding, among other services.
For more information and assistance, reach out to us on (954)-934-9004, (305)-747-5855.
Premium Payments offers cutting edge remote payment solutions. We are committed to helping businesses speed up their payment cycle by offering ACH payment services, Electronic check services and Credit card Processing services. We offer payment processing solution for Auto Dealers, law firm and attorneys, Insurance agents/companies, Accountants and Accounting firms, Non-profit organizations and Property management companies. Call (954)-934-9004, (305)-747-5855 or email us at info@premiumpymts.com To Start Your Risk Free Trial. No Credit Card Required.
