Looking for a famous and reliable payment gateway to handle transactions from your customers? But you are having difficulties, especially if you are a high-risk merchant. A payment gateway is a technical middleman between a merchant and a payment processor.
It is a portion of software that transfers encrypted credit card data and transaction information from the merchant’s checkout to the payment processor, allowing secure online payment acceptance and transaction processing. Similarly, a high-risk payment gateway is the same service but a type that works with merchants who fall into the high-risk category. In some cases, payment gateways for high-risk businesses may have higher fees to reimburse for the extra risk that the payment processor is shouldering. But of course, nowadays, it is nearly a cashless society, which beats the cost of not having a payment gateway at all.
What Is a Payment Gateway and How Does It Work?
Discussing payment gateway solutions in simple language will help you learn more about them for high-risk payments. You can accept debit card payments, credit card payments, and mobile payments. The payment processor is the company that manages and provides services to the payment gateways.
The first step of this procedure is for the cardholder to buy through your website or POS (Point-of-Sale) terminal. The payment gateways push the transaction information to the, discovering which credit card network service was used; the cards include Mastercard, Visa, Discover, or American Express. The transaction is routed to the appropriate payment switch, which routes a request to the issuing bank.
The issuing bank executes its fraud protocols to decide if the transaction is honest (for instance, within a particular radius of your address or a certain reasonable amount), as well as establish that your customer has sufficient credit or cash in their account to cover the purchase.
If everything checks out and is perfect, the issuing bank sends its approval back via the credit card network to the payment gateway and the acquiring bank. In some cases, the merchant will need to negotiate payment by adding tips and then send a batch capture or clearing file for all the authorized transactions.
Some Advantages of High Risk Merchant Account at Highriskpay.com
| 99% Approval Rate! | No Contract |
| No Application Fee | Fast 24 Hour Approval |
| No Setup Fee | Bad Credit OK |
| Chargeback Prevention | Next Day Funding |
Instant Approval for High Risk Merchant Account
The underwriting process for high-risk businesses may take longer than normal days, generally in highly regulated industries. No need to worry; approving the account at High Risk Pay will typically take 24 to 48 hours. High Risk Pay provides customer-friendly solutions that allow clients to get account approval immediately. It provides a 99% approval rate, which means the business will be almost guaranteed approval, and the client can accept the payments quickly and easily.
High Risk Merchant Highriskpay.com Services for Any Credit History
High Risk merchant accounts at highriskpay.com also set up the account with bad credits. Their average approval rate is 99%, the highest in the industries. With High Risk Merchant Account, customers will get a bad credit account with fast approvals and no setup and cancellation fees. It’s very easy to apply online.
High Risk Merchant Account at Competitive Rates
A high risk merchant account can have higher taxes and restrictions. The fees may vary by provider and heavily depend on the company’s specific needs. But at high risk merchant highriskpay.com, they do not punish customers for being in a business that presents a greater risk of fraud or chargebacks.
With the help of High Risk Pay, fees are similar to those of traditional card processors. In return, as a business owner, you get various paths to accepting credit and debit cards for transactions. You will get the pleasure of serving your customers while making the transactions as suitable for them as possible.
Additionally, while other high-risk merchant account providers may charge up to a hundred dollars for filling out the form and set up fees, high risk merchant highriskpay.com charges nothing to set up their own high-risk merchant account
How To Know Whether Your Business Is High-Risk
Each payment processor, such as a bank and account service provider, defines its own standard for identifying a high risk merchant account. Basically, two factors need to be considered: your industry (some verticals need to be more stable and secure than others) and your financial profile (credit history, past performance, etc.
Besides this, they also consider how heavily controlled a business’s industry is at both the national and state levels and how saturated its market segment is with similar companies.
Here are the factors that payment processors generally use to know whether the business is at high risk:
- Fraud & Chargeback Rates –The businesses that have high chargeback or fraud rates will automatically classified as high-risk by banks and payment processors. Firms with a chargeback ratio over 1% are generally supposed to be high-risk. Chargebacks can occur for any reason, from customer forgetting to sign up to getting billed without their consent.
- Types Of Products And Services—Various types of products, including software, seasonal items, tickets, etc., can target businesses with unusual or inconsistent revenues. Payment processors consider this a very big red flag and a sign of financial uncertainty.
- Reputational Risk – Companies that deal with sensitive customer information may suffer reputational effects. This includes companies that serve adult and tech sectors.
- Recurring Payments—Some business models with a high rate of chargebacks or fraud can send a warning signal to payment processors. A common example is recurring or subscription-based providers with an increased risk of chargebacks, account takeovers, and identity theft.
- Monthly Sales Volumes or Transaction Value—Financial institutions might consider a business high-risk if it routinely accepts high-value transactions. B2B companies mostly have to deal with this factor.
- Credit Score – Banks are less likely to lend money to individuals or businesses with poor credit scores, so if you have a low personal credit score, your company may be considered high-risk.
The Final Thoughts
As previously discussed, the behind-the-scenes of a high-risk payment processor is not significantly different from that of a low-risk payment processor. The definition of “high risk” can vary between different merchants and processors. Importantly, while some payment processors have low barriers to entry, merchants face the risk of being suddenly cut off at any time. Additional safety protocols may involve browser fingerprinting, IP blocking, historical card database checks, and email matching.
