Want to cut fees on high risk merchant accounts?
You may be able to get out of a high risk status!
In the merchant account field, high risk accounts pay some of the top processing costs in the industry. Your company may have been designated as high risk even if you are not in a traditionally risky trade like travel, adult services, gambling, and offshore pharmaceutical sales. If your business had a poor credit rating when it started, or had too many chargebacks in the past, you may still be overpaying for credit card processing even though you qualify for much lower rates. In some cases, high risk merchant account processors may be charging 10% (or more) of the sale price when an average fee for low risk merchants is closer to between 2.5% and 3.5% or less. If you haven’t reviewed your merchant account statement lately, you might be pleasantly surprised at how much you could save with a new credit card processing company, or you may have ammunition to go back to your current processor and demand better rates. A merchant account with a high risk designation should not eat into your income if you can possibly prevent it, and even if you are in a field with a higher risk, new credit card fraud and chargeback prevention protocols could mean that you can still pay less for credit card processing.
Notes and Special Information
Special note: In some fields, like online casinos and pharmaceutical companies, it may make sense to get bank drafts which are less likely to experience chargebacks.