Many processing banks are considering different businesses of a certain type high risk investments. Those businesses that earn this kind of designation can be foreign travel businesses, online pharmacy businesses, telemarketing, adult websites, bail bonds, internet based businesses and many others. These types of business are considered high risk.
High risk businesses have high potential for charge backs, fraudulent activity, returns, plus a tendency of negative publicity generated by banks supporting industries that are morally controversial. Banks and service providers, base their business decisions on risk level, it may be hard for merchants working in high risk industries to get approved for merchant accounts.
Nowadays, risk assessment and management science has greatly improved over that past five years, making it easier for HRMs to obtain accounts. It makes sense to appreciate the environment to be able to understand highr risk accounts. Visa and MasterCard, as well as the other card classify certain businesses as being high risk merchant accounts.
Here are some helpful tips:
· Look for credit companies with good reputations and a satisfied customer base. You can ask for referrals or online reviews.
· Read the agreements and terms of use provided by the company. Make sure that the company is not giving you hidden fees, such as per transaction fees and account cancellation fees, etc.
· Don’t just focus to one company, try to compare at least three of your choice, and opt for the most suitable one for you. Choose wisely.
· Don't fall for lucrative ads. Many of these are misleading, and will charge more than they state. Pay attention to the details. Say for example, some processors even charge for failed transactions. These points are deliberately written in fine print in the agreement letter, so make sure to read the papers thoroughly.
· Don't always go for companies providing the lowest discount rate. Try to be certain that along with transaction fees and other additional payments, the discount rate adds up to something affordable for you first merchant services.
Source:http://goarticles.com/article/High-Risk-Merchant-Accounts-A-Few-Tips/5326498/
