With our network of tested and trusted international, offshore and domestic banking partners, we are able to provide a merchant account solution for your business no matter if you have been categorized as high risk before or even if your are a startup business.
Typical high risk categories:
When do you need a high risk merchant account?
There are many factors which are considered by banks and payment providers when classifying someone as high risk. The first most important factor is the industry reputation in which you are in, second is your business trading history. For example, online gambling industry is automatically taken as high risk by acquiring banks due to historic connections with sketchy industries as well as past experiences from many merchants. Also, when there's a potential for high traffic and higher chance of data theft or credit card details, the providers are at risk and thus impose stricter terms when processing for such businesses, or decline them completely.
Chargeback ratios and processing history
Your business trading history, what we refer to as your credit card processing history, is the second most important factor. Card schemes like Visa and MasterCard dictate through acquiring banks the highest acceptable chargeback ratios, which are at around 1-2% from sales volume and transaction count. As you can imagine some business can reach this threshold very fast and even a couple of consequtive months above 2% means the bank will close your merchant account. That's why most high risk merchants are always asked by banks for detailed card processing statements for past 4-6 months and can only be approved after thorough review. Another risk factor shown in history is the refund and fraud trends, any businesses known for fraud or which have shown fraudalent transactions in past will have a hard time getting approved.
Luckily MerchantScout is specialized for high risk merchant accounts. It is very important that our experts have a decade-long experience and working closely with trustworthy banks in Europe and worldwide, as many providers try to take advantage of the situation by giving extremly high rates or even not paying out your money. We work only with regulated well established banks, mostly in Germany, Netherlands and UK.