A high risk merchant account provider will probably have a fee structure that includes a lower minimum payment, but that also comes with a higher rate of interest. This is an unfortunate cost of doing business and is one of the things that many of us want to avoid, while still being able to sell products online.
The first thing you need to do is determine the risk factor that you will be facing in your business. Are there any particular areas where your products or services will need to be sold? If so, then you should consider that as the area where you are going to have the highest risk. For example, if you are going to be selling products online, it would make sense to concentrate on the eBay niche where you can be assured of higher sales because there are a lot of people who are interested in auctions.
The next thing that you need to look at is the type of transaction that is likely to put you into high risk. There are two main types: credit card transactions and debit card transactions. Credit cards can be used for any purpose, including cash advances, which can put you right in high-risk territory. Debit cards, on the other hand, can be used for any purpose except cash advances. This means that if you are going to accept credit cards, you might want to think about another type of payment method. Learn more information about high risk processing.
If you decide that you can accept credit card transactions, then you will need to look at credit card merchant accounts that offer a low fee, but one that comes with higher rates of interest than the others. You can also find a card that has a low minimum payment, but it is not as secure as one with a higher minimum. Some companies will offer a high fee and then lower their rates, making them more competitive with the competition.
There are some ways that you can go about lowering your high risk. You could try getting a lower limit on your transactions to a point that you are not considered high risk. It could also be wise to keep track of your transactions and make sure that they are all being reported accurately. Even the smallest errors will give rise to an inaccurate report, and that can negatively impact your credit score and the ability of your business to get credit.
High risk merchant accounts can be frustrating when they happen, and you don’t want to waste too much time looking for a company that will work for you. But by using a credit card that allows you to manage your accounts without worrying about your report, you can find merchant accounts that will work for you.