Tips for Finding The Right High Risk Merchant Processing Company

It is virtually impossible to operate a business without accepting debit cards or credit cards as a modern business owner. Before you can accept these electronic payments, you need to set up a merchant account with a merchant payment processor.


Merchant payment processors act as the liaisons between your business, the banks, and the credit card networks. However, finding a processing company to partner with your business can be challenging if you are considered a high-risk merchant.


The good is that companies out there specialize in providing processing services to high-risk merchants. And Salus Payments in one of them!


In this blog, our experts will discuss:

  • What a high-risk merchant is

  • What business industries are considered high risk and why

  • Tips on how to find the right high-risk merchant processing company


Image of man doing research on his laptop.
Tips for Finding The Right High Risk Merchant Processing Company


Table of Contents:


  1. What Is A High-Risk Merchant

  2. What Business Industries Are Considered High-Risk?

  3. Tips For Finding The Right High-Risk Merchant Processor

  4. Tip # 1: Do Your Research

  5. Tip # 2: Be Honest With The High-Risk Merchant Services Provider

  6. Tip # 3: Choose A High-Risk Merchant Processor That Offers Everything You Need

  7. Tip # 4: Choose A High-Risk Merchant Provider That Does Not Require Long-Term Contracts

  8. Tip # 5: Choose A Merchant Processing Provider That Puts Service First

  9. Conclusion


People Also Ask:


What is a high risk processor?

A high-risk processor is a company that provides merchant services and accounts for businesses considered to be high-risk by banks, cred card networks, and traditional merchant services providers.


What is a high risk business?


Simply put; a high-risk business is a merchant who is perceived to have a greater risk for fraud or financial failure by the banks, credit card networks, and traditional merchant services providers.


What Is A High-Risk Merchant?


A high-risk merchant is any business that operates in an industry considered at a higher risk by the banks, credit card networks, and merchant service processors.


Traditional payment processing providers that label merchants as high-risk do so because they consider the business to be at a higher risk for:


  • Chargebacks

  • Fraud

  • High-volume returns


Typically, businesses with high-risk merchant accounts must pay higher processing fees to make up for the payment processor's risk.


There are many reasons why banks, credit card networks, and payment processing companies consider some merchants to be high risk. It could be because of the industry you operate in or because you are a new business that hasn’t processed card payments before.


What Business Industries Are Considered High-Risk?


When looking to partner with a high-risk merchant services provider, it’s essential to know if your industry is labeled a higher risk so you can be prepared and plan accordingly.


Common high-risk business industries include:


  • Debt collections

  • Travel (cruises, airlines, vacation planners)

  • Electronics and furniture stores

  • Online dating

  • Gambling

  • CBD and vape shops

  • Adult filming and products


Other high-risk industries can include multi-level marketing, E-commerce, subscription companies, and other businesses that profit from recurring payment plans.


Tips For Finding The Right High-Risk Merchant Processor


At Salus Payments, we specialize in working with and providing merchant services for small businesses considered high risk. Our experts have put together the following list of tips to help you choose the right high-risk merchant processor and secure a high-risk merchant account.


Tip #1: Do Your Research


One of the most important aspects of choosing a high-risk merchant services provider is doing your research. You want to take your time and do your due diligence, making sure the company you choose has the experience and has successfully worked with high-risk businesses.


At Salus Payments, we also recommend researching high-risk merchant processors that have partnered with other businesses that operate in your same industry.


You can better avoid partnering with high-risk processing providers that utilize predatory tactics like inflated fees by:


  • Taking the time to read online reviews

  • Looking at providers that have high-quality websites

  • Visiting processor websites that include transparent pricing or have links to get a quote


If a potential provider has a low-quality site, it may indicate that the company may have a limited budget. A high-risk merchant services business with a limited budget may result in predatory tactics and unnecessarily high fees for you if they need to make up for their losses.


Additionally, you should always read the terms and conditions found on the merchant application carefully. By sure to always ask questions when necessary.

Tip #2: Be Honest With The High-Risk Merchant Services Provider


Once you’ve narrowed down your selection of potential high-risk merchant processors, you need to be completely honest with the company you choose. Letting them know about the nature of your business and industry from the very beginning will allow your provider to help you to the best of their ability.


Not being truthful with your high-risk merchant provider could also lead to inaccurate service rates and quotes.


When requested, be sure to provide your merchant services processor with the following relevant information:


  • Credit history

  • Financial statements

  • Merchant account history


Tip #3: Choose A High-Risk Merchant Processor That Offers Everything You Need


When choosing a high-risk merchant provider, you must partner with a company that can meet all of the payment processing needs for your specific business. In doing so, you won’t have to sacrifice services or work with multiple service providers.


Providers should offer essential payment processing services such as:

  • Credit card terminals

  • Point of sale (POS) systems

  • Mobile payment solutions

  • Payment Gateways

  • Integrated payment systems

Not all of the above services need to be included in the base rate of your high-risk merchant account. However, as long as they are offered and reasonably priced by the provider, you should be on the right track.


Tip #4: Choose A High-Risk Merchant Provider That Does Not Require Long-Term Contracts


As you continue your search for potential payment processing providers, you might notice that some companies require long-term contracts, especially for high-risk businesses. Contrary to popular belief, high-risk businesses do not need to be locked into a long-binding contract with merchant service providers.


At Salus Payments, we do not recommend choosing a company that requires you to be locked in a long-term contract. The reason is that your business needs will likely change in the future, and the merchant provider you choose should be willing to adapt their services to meet those needs.


Try to look for a payment processor that offers flexibility, possibly via month-to-month contracts.


Tip #5: Choose A Merchant Processing Provider That Puts Service First


Choosing to partner with a high-risk merchant payment provider that puts service first may be the last tip on our list, but it’s perhaps the most important. One of the best ways to know whether a provider values service or not is by looking at the reviews.


Instead of providing you with ongoing merchant services, a processor that values service will be there to also provide you with 24/7:


  • Support

  • Training

  • Troubleshooting

  • Maintenance

  • Consulting


Conclusion


Finding the right high-risk merchant services provider for your small business can be difficult. But it doesn’t always have to be!


Salus Payments has years of experience working with businesses of every size and industry. We specialize in credit card processing solutions specifically designed for high-risk merchants.


Are you ready to discover how our high-risk merchant experts can help you?


Click here to contact Salus Payments to get started today!

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