High Risk Industries

High-Risk Merchant Accounts Industries

One task that is at the heart of every business in any industry is receiving payments. This is a challenge no matter how large or small the organization. Choosing a payment processing company can be challenging, especially if you are in a high-risk industry. You may incur higher fees than other businesses and be subject to more regulations as a high-risk merchant account.

Understanding Payment Processing

Processing payments can be quite complicated if you allow multiple payment options to your customers. In today’s competitive world, you need to give your customers what they want, which may include many payment options for their convenience. However, you also must protect your business from fraud, identity theft and other risks that inevitably come with taking payments from customers.

Some of the challenges present in payment processing include the following:

  • Taking credit and debit cards payments
  • Accepting and guaranteeing checks
  • Automated Clearing House payments
  • Online payments
  • Point of sale payments

A business must decide which of these payment types it will take in transactions. It will have to determine how to keep the business safe and protect the customer with whichever methods it chooses to use.

The “High-Risk” Label

Some businesses are considered to have a higher level of risk than others. While this is an antiquated system that is not always accurate, it does put some organizations at a disadvantage when it comes to pricing. Payment processing companies can charge a higher rate for those high risk merchant accounts even if they have extensive levels of security in place.

What makes a high-risk organization? It must meet one or more of the following characteristics:

  • Be a business categorized in a new industry
  • Sell to customers outside the country
  • Be owned by someone with a poor credit history
  • Have a high turnover rate
  • Be a type of business that has an increased risk for fraudulent activity

Businesses in the finance industry or retail are obviously at a higher level of risk. However, almost any business can receive the label of a high-risk merchant account based on these criteria.High Risk Merchant Account

Payment Processing Options

Numerous companies offer their services for payment processing, but they all come at a price. In fact, you may have so many choices that you are not sure which one to choose. What criteria do you use to determine the best fit for your company?

It can be overwhelming when you consider the options available.

  • Fees and charges will be one of the top considerations. You want to find a company that is competitive in pricing to ensure that you don’t have to raise prices to your customers to cover the added expense.
  • You also may not want to be locked into a contract that is almost impossible to get out of if you discover that it doesn’t work for you. Many merchant payment processors allow month-to-month payment plans even if they don’t advertise them.
  • Another consideration is how companies charge you for your business as well as how much. Some have a fee structure based on the number of transactions you have. Others charge you a flat rate per month regardless of how many transactions are processed.
  • The length of time it takes to process a transaction is just as important. The longer it takes to receive payment, the more likely that some of the payments will not go through. Customers who do not balance their accounts and only look at the bottom line may not realize that a payment has not processed through their accounts. When your transaction finally goes through, it could be returned. A company that can process transactions within two days or less reduces your risk.

If a company offers real-time processing, you have greatly reduced your risk. At the same time, you want to know that proper verification and safety procedures are in place to eliminate as much of the risk as possible. For instance, a company should verify billing addresses and use SSL encryption when processing transactions.

High-risk companies have the same challenges in finding payment processors that meet their criteria. In addition, they have to find a company that will accept them and at a reasonable cost.

How UMP Helps

Ultimate Merchant Providers can help you find the right payment processing company for your high-risk business. We provide the top companies for you to choose from. You contact them directly for their services. We eliminate much of the guesswork because we have done our research to know who the best is in the industry. We also review your business to find companies that will accept companies that have been labeled as high risk.

Instead of filling out numerous applications, hoping to be approved by a reputable company, you can rest assured that you have the best to choose from. It can take weeks to find the right company and get signed up if you do all of the work on your own. During that time, you are losing money because you can’t accept certain types of payments from your customers.

With the help of UMP, you can sign up with an account quickly and get your business started right away. We increase your chances of being approved with the first company you choose because we use our research to determine which organizations are more accepting of high-risk businesses. We ensure that every company we recommend is reliable and has a solid reputation.

You won’t have to settle for some unknown, shady company just because you have more risk than other businesses. You can trust the companies we recommend and know they have been researched by our team of experts to provide a high-risk merchant account. They will provide the services you need so that you can begin accepting customer payments and start or expand your business right away.

Don’t let being labeled a “high-risk” company hurt your business or limit your payment capabilities. Give your customers more options for payments with a payment processing company that you can trust. Let UMP help you team up with the best company for your business and ensure that you succeed.

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