High risk merchant account finance services provider
July 13, 2019
We have been writing about various aspects of the high-risk merchant account market for years and have most likely reached on most, if not all of them, of the most deciding problems. Here are some more advices on best high risk merchant account.
High-risk merchant accounts are a collection of financial services that offers businesses to receive card payments from clients. Credit card processors assign merchants to one of two categories: high risk or low (normal) risk, based on a number of factors. High-risk merchants face reduced options in processors, plus higher fees and strong binding contracts. Being labeled as high-risk sounds terrible. But in some cases, it can be your only option.
It’s virtually not possible for commerce merchants to operate without having enabled as payment type the credit or debit cards. Before you can accept “plastic,” you have to use a payment processor who acts as a liaison between you, banks, and credit card networks.
A lot of financial processors do business only with with low-risk businesses, who they consider as a low risk investment. That means businesses considered high-risk will have a limited selection of potential payment services to choose from. Any processor you approach will take a careful, detailed look at your business to determine if you fall under their definition of “high risk,” based on the financial risk your company represents.
Here are some high risk credit card processors : Billing itself as a “new kind of service provider,” T1 Payments offers flexible underwriting, easy application process, flat rates, and expert support–all combined into a state-of-the-art solution with dedicated end-to-end service.
Instabill was one of the better high risk merchant account providers we came across in our search. Their customer support agents were very clear and forthcoming with information. One thing to note is that Instabill is not cheap. For example, a Tech Support business would need to pay 4.95% + 0.25 plus the interchange fee for every transaction. That is significantly more than what non-high risk merchants charge, and even slightly higher than other companies on this list. However, this is unavoidable in high-risk industries. The reason we were pleased with Instabill’s offer was due to how easy it was to get pricing information in the first place – something that can’t be said for a lot of their competitors. Instabill does not post any of their prices online, since the cost will be highly dependent on the industry and bank involved in setting up the merchant account. However, you can get a quote by speaking with a sales representative and obtain a quote very quickly.
We did transactions on all of the high risk credit card processors, to be able to compare and our pick was HRMA-LLC. They cover all business types, have a huge experience in the field, fast customer support and low fees.