How to Know if You Have a High Risk Merchant Account

1. How to Know if You Have a High Risk Merchant Account High Risk Merchant Account refers to accounts that are qualified as high risk where merchant account providers find something that is risky to invest in your business. Being qualified in a high-risk merchant account is not a bad thing as it sounds. A formula is being applied to all accounts to determine its risk level. To better now what high risk merchant account means, you should be able to ask questions to yourselves regarding your business. In this way, you can also determine if your account will be included in the list of high risk merchant accounts or not. Know in what industry your business belongs. Is it home-based, online or a real world business? Knowing what kind of business you have. It is where the provider will depend whether to consider your account a high risk. If your business does not have any office space, it intensifies the riskiness of your business. Businesses that are home based and online has a possibility that their accounts be included in the high risk merchant accounts. Know the financial history of your business and of yourself. Providers will also be looking through your financial histories and can be a reason to increase the level of your business’s risk. Providers will be check if your business has suffered from bankruptcy in the past and if you fail

2. to pay credit cards statements. This will also be risk in your account. These are considered as risks because if a business had a hard time paying, this can also be a danger to the provider. Providers always want to make sure that a business can pay all kind of fees in the account. Always consider how much sales you make and its prices. Having high prices and having high sales give you a high risk merchant account. Having high sales and high process can lead to corruption in your business and fraud. It may not be applicable to your business but it is likely to occur to businesses that has high revenues. Know what type of business you have. There are businesses that start quickly but do not last long. This kind of business can face bankruptcy that can affect your relationship with your provider. There are businesses that can be considered as high risk. These are: Online Dating Services Online Casinos Online and Offline adult entertainment Online and offline travel agencies Internet Service Providers and Web-hosting services The businesses provided in the list are risky in a sense that these businesses just come and go. Providers thoroughly evaluate these kinds of businesses with full attention just to make sure that it will not affect the company. Being included in a high risk merchant account does not bring any negative effects in the business. Providers just want to make sure that everything will be taken care. It is better to consult your providers regarding your account in order for you to know if you are qualified in the list of high risk merchant account. Never forget to ask these kinds of questions to yourself in order to see for yourself if your business will be a high risk account or not. CONTACT US:- Payscout, Inc. Los Angeles • Atlanta New Jersey • São Paulo Shanghai 1.888.689.6088 www.payscout.com