In general, the high-risk merchant accounts are created in the UK for business purposes that are currently considered at high risk and require a merchant account for taking card payments. The high-risk merchant accounts in the UK are especially for those with a bad credit rating or starting a new business. All the high-risk merchant accounts are not always created equally. Thus, you need to get better guidance on the best accounts for your business so that you can enhance your financial performance in an effective manner.
Why do you need a high-risk merchant account?
A high-risk merchant account is generally required to accept the card payments, whether it is over the phone, online payment, or from behind a counter. However, it could be a pretty straightforward process for many mall businesses. If you are looking for high risk business credit card processing, then you can go through a third-party merchant account provider in the UK or can directly contact a bank. However, there are some standard merchant accounts that take time to get accepted as all the businesses are not created equally. Usually, these high-risk merchant accounts are for those traders who trade in high-value international transactions or have a bad credit rating.
What are the considered high-risk businesses?
There are some of the businesses that are considered to be at a high-risk, if:
- Your business had a bad credit rating
- Your business had no experience in card payment processing, or it’s a new business
- Your business is a multi-currency business
- Your business is at high risk
- You have a terminated merchant account previously due to the excessive chargebacks
- Your business deals with the international transactions where the countries deemed to have a high chargeback risk
- Your business deal with high-value transactions.
If any of these is applied to your business, then you need to deal with it very carefully to gain success in future.
What are the considered high-risk industries?
There are some of the industries that are considered to be at high risk, including;
- Travel, tourism, and airlines
- electronic cigarettes, alcohol, and tobacco
- Debt collection agencies and payday loans
- Timeshares and pyramid selling
- Pharmaceuticals (prescriptions and drug products)
- Foreign exchange or Forex
- Nonprofits or charities
- Advertising services and affiliate marketing
- Adult entertainment, escort services, and gambling
- Online auctions
- Ticketing and events services
- Monthly memberships and subscription services.
If you belong to an industry of online subscription services, then you need to understand that you are at a high chargeback risk. Usually, people go for the online service for a free 30-day trial period and later forget about its use. Here, people are not aware of the chargeable amount, so when they get to know about it, then they call the bank to complain. This results in a high-risk charge to the monthly memberships and subscription services.
For instance, if you are a travel, tourism, and airline agent, then you should know that this industry has a greater risk of chargebacks. This is because the travel business takes a long time to deliver the services and take the payment before. Thus, the long period results in changing the minds of the customers as well as results to dispute the payment.
Here, the bank and the travel business lose out by issuing the chargeback. Apart from that, a higher inherent level of risk is also associated with gambling, pyramid selling and adult entertainment. In such a case, having a high-risk merchant accounts in UK can be considered the safe side for your business.
What will be the best high-risk merchant account for your business?
In the UK region, you can find a wide range of merchant account providers who are providing guidance to cater the high-risk business. However, these providers take high processing fees charge and offer standard services. Here are some of the qualities or benefits that you need to identify in the service provider to get the best high-risk business credit card processing.
- First of all, you need to check whether the services provider is best for your business field or not.
- Highly suitable and scalable service provider for high-risk businesses of all sizes.
- The service provider is giving over 200 transactions processed per second.
- The service provider is offering intelligent risk management techniques.
- The service provider provides both online and over-the-phone options to accept card payments.
- Also, you need to check whether the service provider is providing payment processing for eCommerce merchants, mortar pharmacies and many others.
- The service provider takes less time to activate the high-risk merchant accounts in UK.
Apart from these, you need to do some research online as well as go through the review about the service providers so that you can get the best high-risk business credit card processing in the UK. Likely, We Tranxact Ltd. is offering a high-risk merchant account that you can choose to improve your business standards and overall performance with the high-risk merchant account.