How To Solve The Biggest Problems With High Risk Credit Card Processing


With the problems the United States has had with its economy over the last few years, it is no wonder that financial institutions are skeptical about giving credit to some businesses. For whatever reason, some of those businesses cannot or will not get the financial services needed for their company to thrive.


Companies without the financial backing of a bank, cannot accept credit cards. They need a merchant account in order to accept credit cards. What few people know is that most of the businesses that do not have this service, would actually welcome it. If you ever wondered why some places will only accept cash or checks for payment, here are some enlightening reasons why your favorite little corner store will not take your credit card.

High or Low – Risk Businesses


For businesses to have credit card processing, they must have a financial institution to grant them a merchant account. With this account, the institution (bank) will be taking on the business as a liability by giving it credit. Unfortunately,  banks will give a company a rating as being a low-risk or high-risk business.

  • Low-risk is a business that accepts credit card processing, but requires that the customer using the card to supply proper identification at the time of usage.
  • High- risk businesses cannot check identification at the time of credit purchases or must key in the information manually. This happens for online or mail-order purchases. Banks consider this method more of a risk to take because of no rock solid guarantee that the user of the card is whom they say they are.

More High – Risk Labels


Your business can also be labeled high-risk for other reasons.

  1. Type of product or service sold

a. Adult related or Pornographic purchases

b. Tobacco

c. Timeshares

d. Guns and Ammunition

2.  Credit Rating

3.  Financial Position

4.  Recurring Billing

.. and more.


How To Solve The Biggest Problems With High Risk Credit Card Processing


The biggest problem for high-risk credit card processing is acquiring a merchant account. The mass majority of banks will not grant a merchant account to high-risk businesses. If they do, those businesses will pay a much higher rate than low-risk merchants. As a result, some businesses do not accept credit cards because they cannot afford a merchant account.

The solution is getting a third-party company investor to acquire a merchant account from. Without it, customers can only pay in cash or check. This is asking too much for the average consumer that prefers to pay with a card. Third-party companies were created to help businesses with this limitation, allowing them to cater to the needs of all its customers. Third-parties have a relationship with financial institutions and other companies willing to work with high-risk businesses.


They offer competitive pricing to compare to the merchant account you may already have.


Problem solved.