High Risk Merchant Accounts FAQ

  1. What is a high risk merchant account?
  2. How do you apply for a high risk merchant account?
  3. How long will high risk merchant account approval take?
  4. What is the application fee for a high risk merchant account?
  5. What are the requirements for a high risk merchant account?
  6. How much monthly processing volume do you have with a high risk merchant account?
  7. Do high risk merchant accounts require reserves?
  8. Where is a high risk merchant account located?
  9. What are the settlement times?
  10. What type of fraud protection is available for high risk merchant accounts?
  11. Do high risk merchant merchants have a virtual terminal included?
  12. What is a chargeback?

 

  1. What is a high risk merchant account?
    Businesses within certain industry classifications are considered high risk merchant accounts. Statistically, these types of businesses have a greater incidence of fraud and chargebacks which represents increased risk of financial loss for the acquiring banks. Rapidly growing businesses processing high volumes of payments and businesses that have high average tickets are can also be classified as high risk merchant accounts.

  2. How do you apply for a high risk merchant account?
    Applying for a high risk merchant account is the same as applying for a standard merchant account. You fill out an application form and submit supporting due diligence documentation to the acquiring bank.

  3. How long will high risk merchant account approval take?
    Once application and documentation has been received, high risk account approval takes 3-5 business days.

  4. What is the application fee for a high risk merchant account?
    Application for high risk merchant accounts is always free. Watch out for companies that charge you application fees. These companies care more about getting application fees than getting you an account.

  5. What are the requirements for a high risk merchant account?
    To apply for a high risk merchant account, you must be processing at least $50,000 per month. No start-up companies are accepted.

  6. How much monthly processing volume do you have with a high risk merchant account?
    You can process as much as you want. In fact, acquiring banks prefer high volume high risk merchant accounts.

  7. Do high risk merchant accounts require reserves?
    Most acquiring banks require rolling reserves ranging from 5-10%. Reserves can be renegotiated after processing history is established.

  8. Where is a high risk merchant account located?
    Acquiring banks for high risk merchant accounts are located in a many different countries. You can establish high risk merchant accounts in more than one country.

  9. What are the settlement times?
    Settlement times for high risk merchant accounts depend upon the acquiring bank and the amount being processed. Daily settlement is available for qualified merchants.

  10. What type of fraud protection is available for high risk merchant accounts?
    Sophisticated fraud protection tools are included in every merchant account. The merchant can set the desired level of protection.

  11. Do high risk merchant merchants have a virtual terminal included?
    Yes. Virtual terminals are included with high risk merchant accounts. A virtual terminal is can be used to process phone, fax, internet or e-mail orders.

  12. What is a chargeback?
    A chargeback occurs when a customer disputes a charge on a statement by contacting the credit card company instead of contacting the merchant. The customer will be refunded money directly through the credit card company and the merchant’s checking account will be debited. There are many highly effective methods a merchant can use to eliminate chargebacks. All methods are included as part the international merchant account.
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