Many businesses attempt to open a merchant account only to find that they don’t qualify with many of the conventional providers. This is a serious issue for many businesses when you consider just how important it is to be able to process credit cards to get the most out of your business. The solution is to find a company willing to provide high-risk credit card processing to businesses who have struggled to otherwise find a provider.
There are major advantages to being able to process credit cards and some of those advantages are very obvious. The first advantage is you have the ability to accept a lot more business transactions. Some people need work done now but won’t have the money in their checking account to pay up front. In other circumstances, it’s all about the timing and waiting until the next paycheck.
In addition to this, many businesses find that their average order size goes up when credit cards are factored into the picture. A person might be really tight with cash but not so much with a business credit card. Why not take that chance?
What Are High-Risk Industries?
What’s striking for some businesses is that they may struggle to get a merchant account despite the fact they have an excellent credit score or flawless credit history. This might simply be due to the specific industry they are working in. Some industries, fairly or not, are categorized as being high-risk and it can be harder to get access to the same tools as other businesses so they can compete.
Just a small sample of these industries include:
Dating or adult websites
Online marketing & services
Vaping stores and more!
Opportunities Available – But at A Cost
While at times these businesses are able to find someone to help them out who specializes in high-risk credit card processing, the pricing scale won’t be the same as it is for low-risk businesses.
Unfortunately, companies providing merchant account services need to look at their bottom line and protect it as well. In the same way, that people with poor credit scores have higher interest rates on loans, businesses that are seen as high-risk (whether it’s the main proprietor’s fault or not) are simply going to have to deal with having to pay more.
That’s not bottom line friendly news, but if more businesses are going to fold on payments, those losses need to have some type of balancing from the merchant account providers. That’s where higher prices across the board come in. The good news is that many companies will work with you if you build a long successful track record of payments with them.
While it can be difficult to figure out the best merchant account solution for your specific situation – do your research and move forward. You will eventually find a partner who will help grow your business to where you have always dreamed of it being!