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What Makes High Risk Accounts High Risk In The Payment Processing WorldAccepting credit card payments is something that pretty much every company hoping to really stay relevant in today's market must do. Whether it's point of sale transactions at a restaurant or a store selling items online, being able to accept credit and debit cards is an absolute must today. But it's not always as easy as just asking for an account. Just like applying for a credit card for your personal use, you need to find a processing provider who will accept your application and work with you. At National Processing, we think it's important that you understand everything there is to understand about payment processing, and that includes knowing more about the area known as 'high risk accounts'.

A high risk account is just what it sounds like – a payment processing account that has extra risk for the company providing the payment processing service. There are two different areas within this specific side of payment processing that are worth learning more about. Bad Credit Merchant Accounts Essentially, these are the kind of accounts that are considered to be high risk because of their past financial history. Things like bankruptcies, low credit scores, and zero credit all lead one to be considered a potential high risk account due solely to financial issues. A company that has declared bankruptcy, closed up shop, but then decided to give it another go somehow is a good example of this. They're higher risk because the likelihood that they close down or default on credit payments is higher. It's the rarer of the two thanks to various laws and legal financial loopholes, but still worth mentioning. High Risk Merchant Accounts More common in the field of high risk accounts are the high risk industries. Areas like adult entertainment, pharmaceutical companies, online auction sites, herbal or vitamin products, e-cigarette sellers, and trial offer companies are usually considered to be high risk accounts, as are telemarketing companies. These are higher risk simply because while the rewards are potentially greater, there is a higher chance of failure or of various legal restrictions being placed on them at some point in time. In short, a high risk account is considered to be a high risk account when it involves a payment processor agreeing to accept a client that could end up going out of business due to legal issues or because of past financial problems. This means that there may be slightly higher fees to cover the company under payment processing, but it certainly doesn't mean that it's impossible to get a merchant account set up.

Posted in Merchant Account, Merchant Card Services on Mar 25, 2014