Overview of high-risk merchant account: 

A high-risk merchant account is a type of payment processing account that’s considered to be a high risk for the banks. To offset the risk of losing money, the banks will charge high fees for merchant services. If the sales volume of the businesses is more than $20,000 comes under the high-risk merchant account. The more chargeback the business comes with, the higher the risk. The travel industry is the perfect example of a business that needs a high-risk payment gateway because here, the cancellation of the plans are high. This is usually associated with the numbers of refunds programs. Despite travel business, there are plenty of businesses that are prone to chargebacks like gambling, flights, forex trading, and so forth. So, if you are running a business that is prone to chargebacks, you should opt for the high-risk merchant account model. If you handle the high-risk payment gateway, then you need to deal with the high transaction charges compared to a regular merchant account. 

High-risk merchant payment gateway fees: 

Let’s face it; the cost of handling a high-risk merchant account is relatively higher than a low risk merchant account. These costs are known as inevitable costs that you need to prepare for. The charging rates of the e-payments vary from service provider to provider. An expensive feature of this account is reverse rolling. It’s a layer of security that is used by the banks to offset the risk of losing money. The lower credit score of the business, the higher rever rolling will be applied on the high-risk payment gateway account.

Steps to apply for the high-risk merchant account: 

A business needs to apply online to open a merchant account. Of course, to accept a credit card online, you need to choose a reputable and reliable payment processor. 

The process of applying for an online 2d merchant account is straightforward. He will help you find a bank that suits your requirements once you choose a reliable payment partner. When your bank approved your business, you can starts e-payments online. 

List of the documents that you need prepare: 

  • Incorporation certificate. 
  • A copy of password, utility bills of the partners and shareholders. 
  • Credit history of the last 6 months. 
  • Name of the organisation and license number. 

Pros and cons of the high-risk merchant account: 

Pros: 

  • High-risk merchant accounts enable you to accept credit cards online globally. Which means you can take your business across the world. 
  • High chargeback protection that means your account gets automatically terminated the chargebacks exceed the limits
  • With a merchant account, you can sale your products online and gives you huge earning chances. 

Cons: 

  • You need someone who can handle this merchant account if anything bad happens to the e-payments on your site. 
  • You need to do a lot of research to find a bank that suits your business requirements.

Final say 

We hope this comprehensive guide on high-risk payment gateway helps you a lot.  If your business is related to high cancellation, then you should opt for this account only.