The Work Behind a High-Risk Merchant Account

May 01, 2019
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There is an ever-decreasing number of processors that support high-risk merchant accounts. The fact that there are many possible and unforeseen events can cause trouble for these types of vendors to find processing.

However, while high-risk may mean a bad thing to some processors, we at Agapay take each company on its own merits and feel that, if you have the right company, benefits with you could outweigh the risks. High-risk merchant accounts require a reputable high-risk processor, without that relationship your business cannot grow. Here are some of the criteria we consider when choosing to support a “high-risk” merchant:

1. Recurring Payments. High-risk businesses have high rates of earning potential due to recurring payments (i.e. telemarketing services, document preparation) where invoices are issued at their designated billing cycles. The guaranteed steady stream of income is worth the risk for a payment processor because it
means an increased gain of revenue and a sustainable source to keep the business growing. As long as the product is approved and all details are spelled out, up front, and clear for the customer we are happy to work with you!
2. High Value Items or Services to Increased Profits. Some items and services can mean a large-sum payment from customers. with additional processing fees to maintain security of the items. These are the specific high-risk merchant categories that deliver high value goods.

  • Travel-related agencies
  • Pharmaceuticals
  • Telemarketing
  • Shipping
  • Long-term financial guidance
  • Educational programs

3. No Payment Limitations. Low-risk Merchant Accounts are subject to financial limitations that could hinder the chances of growth and expansion of the business. Meanwhile, High-risk merchant accounts have increased revenue opportunities since they’re marketing their products through a larger access of
market such as websites and online ads where they can gather more relevant prospects and clients, all the while charging a premium for their goods or services.

4. Alleviates fraud through security measures. High-risk merchant accounts have developed a reliable technique that can recognize if a transaction comes from a legitimate card. With these techniques, fully employed by Agapay, security and safety are assured to the business, merchant service provider and to the client. These assurances make sure everyone is protected.

5. Low Possibility of Account Termination. Chargeback disputes and frauds are already expected from high-risk merchant accounts. Since providers are already aware of the risks that the account may bring, this should not be a reason to terminate just because of the occurrences from a certain period. The company must unceasingly impose strategies that will prevent fraud instead. Clarity, communication, and honesty is key. We make sure those criteria are followed before we even move forward.

Once your company and Agapay choose to work together, the next step is to find the suitable payment processor in which to board, or underwrite, the account. Agapay works very hard to make sure you steer clear of predatory high-risk credit card processing providers. It’s best to consult with Agapay and rest assured that you’re being taken care of – ethically and financially. We’re here to be your powerful ally in overcoming the financial challenges of your business and let you know you, and your company, are worth the risk.

Build a relationship today with Agapay!

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