The phrase “high-risk merchant account” pertains to a payment processing solution designed for businesses that banks deem to be much riskier than ordinary accounts because there are large volume of chargebacks, financial instability, a history of fraud, a bad credit rating, among other things. Due to the obvious risk concerns, high-risk businesses are typically required to pay higher fees and undergo additional inspection in order to obtain merchant services. This is why choosing a credible payment processor like Tailored Pay for a high-risk merchant account is important to help your business in growing exponentially.
If a merchant bank discovers that a high-risk company has a high rate of refunds and chargebacks, the merchant bank may post a rolling reserve – the amount of funds is set aside to cover the possibility of a chargeback – on the business’s account.
Is it required for a business to apply for a high-risk merchant account?
When you apply for a merchant account, the risk that your company gives to the financial institution or bank which will be working with you and providing you with a merchant account would be thoroughly assessed.
High-risk businesses exist in a wide range of industries, such as travel and tourism, charity, adult entertainment, tattoo shops, insurance, and affiliate marketing.
If you operate in a ‘high-risk’ industry or have previously been rejected by a bank, a high-risk merchant account would enable you to continue having a business like normal.
Tailored Pay Features That Can Benefit Merchants with High-Risk Accounts
Prior to choosing a high-risk merchant account company as your new business partner(s), you should consider the following factors to guarantee an informed decision.
- They work with different retailers in various field of business industries.
Choosing a supplier that is familiar with your industry brings a variety of advantages. For beginners, they can have a greater understanding of how typical transactions operate and could even be equipped to recognize fraudulent conduct.
- They provide excellent customer assistance over the phone.
If you operate in a high-risk industry, you will probably run into extra payment or charges issue. Having a customer service thru live chat or being able to talk to an agent thru phone will be considerably preferable than depending on anyone to reply to emails.
- Affordable charges (monthly fee, transaction fee, as well as discount rate applied).
Tailored Pay offer seamless services with affordable charges that will not be a pain in your budget. With a high-risk merchant account service, it is vital to get all necessary charge details and then use your regular transaction volume to establish your business’s monthly cost.
- Tailored Pay is a payment gateway specialist in accepting online transactions.
Due to the different forms of fraud that may occur with online payments, it is highly worth collaborating with Tailored Pay who has commendable experience in collecting online credit card payments for high-risk merchant services. They are more than inclined to utilize a more secure payment system and will have processes in place to reduce fraud and chargebacks.
- Tailored pay have dependable and stringent security precautions.
Tailored Pay complies with rigorous data security requirements as well as industry standards. For example, the have anti-fraud features and a chargeback protection system to secure your business from dishonest users. Moreover, the implement firewalls, data encryption, and other industry-standard security measures.
- They offer customizable services and they are very adaptable.
Tailored Pay is capable in modifying their rates, products, services, as well as other features to your company’s needs, current state, and future objectives – all of which are crucial if your business strategy is very complicated.
- Their fees and contract agreements clear and simple to understand.
All fees and extra costs that Tailored Pay charges are specified explicitly on their customized quote and website. The small print of the contract should not be overlooked, with particular attention paid to any possible hidden expenses, the contract’s duration, the period of notice, and termination fees.
- Tailored Pay’s website is up to date.
Tailored Pay’s website is always up to date. All the information that are needed can be found on their site. This establishes that Tailored Pay is a company that is continuing to operate effectively and adapting to evolving business needs and market conditions.
Things To Do To Increase Your Chances Of Getting Approved In Applying For A Tailored Pay High-Risk Account
Apart from just applying for a Tailored Pay high-risk merchant account, it has a series of steps you can do on your end to optimize your application and increase the chances of approval.
- Ensure that your financial records are accurate.
Maintaining updated financial records can assist you in showing your current financial situation.
- You should consider boosting your credit score by a few points.
Because high-risk merchant accounts are meant to accommodate consumers with a poor credit history, it is still prudent to take steps to improve your credit score prior to applying. This may include avoiding late payments and finishing any planned premieres that are overdue.
- Ensure that all of the terms and conditions are fully compliant.
Ensuring your terms and conditions are completely compliant and that you are functioning within the legal structure of regulatory standards and limits will help you in persuading providers that you would not create future difficulties.
- If you use a third-party fulfillment service, ensure that your contract protects you against responsibility.
Orders and refunds processed by a third-party fulfillment provider may expose your business to increased risk of loss; thus, ensure that your contract with the company includes enough insurance in case you will run into an issue or problem.
- Compile a list of quotes and do in-depth study.
It is often good to gather numerous quotations prior to engaging in business talks. Contacting many providers and reading customer reviews will guarantee that you are fully informed and capable of obtaining the most suitable high-risk merchant account for your company.
- Chargebacks should be minimized.
Demonstrating your ability to limit chargebacks to a minimum will improve your chances of approval. This may be achieved, among other things, by implementing fraud filters, arranging statement descriptions accordingly, and developing a rapid and straightforward refund procedure.
Disclaimer: This article contains sponsored marketing content. It is intended for promotional purposes and should not be considered as an endorsement or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article.
