The creedo for high risk merchant processing is high risk, high return. And it’s all true. The earning potential with high risk payment processing is immense if navigated with due diligence and good practices, but also knowing the risks that lie within each individual industry – the latter perhaps more important than ever.
It is a delicate balance for sure. In weighing the risk vs. reward, however, handling the former certainly impacts the latter. That’s what we’ve found after nearly 20 years as a provider of high risk merchant accounts.
Domestic and offshore banks that welcome high risk merchants
With acquiring banking partners on six continents, Instabill offers many diverse banking solutions – domestic and offshore – that cater to high risk merchant processing. Moreover, our expert merchant account managers are well-versed in which banks are the best possible solutions for certain industries. With a few questions about your business, we’ll have a good idea quickly what the best banking solution is for your business.
Upon approval with the best possible solution, merchants connect to the payment gateway of their new acquiring bank, enabling them to accept credit cards online.
Open your borders with multiple currencies
With our offshore and international banks, merchants can opt for solutions that enable them to accept multiple currencies and expand their businesses cross border. For merchants who need or wish to register in other countries, Instabill can arrange for the essential components merchants need to do so, such as:
- A physical office with a director, shareholder and administrative assistant
- Office phone number
- Bank account within the country of incorporation
- Annual fees associated with company registration
- Ancillary services such as additional bank accounts, extra staff, storage facilities and accounting services
The thing about offshore merchant accounts
Based on a merchant’s risk profile (processing history, industry type, payment methods), s/he may be subject to fewer tax restrictions when approved for an offshore merchant account. Tax breaks and multiple currencies are only two of the many benefits, along with:
- Generous volume caps (sometimes none)
- A more liberal approach to high risk merchant processing
- Generally a higher rate of approvals
High risk merchant processing: due diligence required
High risk merchant accounts aren’t classified as such without reason. Having been in the high risk space since 2001, we can quickly tell you why your business might be classified as high risk:
- Online or card-not-present businesses are always considered high risk since they endure instances of fraud far more often than card-present businesses.
- Some industries incur a high rate of chargebacks (tech support, subscriptions with free trials).
- Reputation concerns: some banks might shun processing transactions for certain high risk industries such as adult/emotional content or online gambling, simply because those industries carry a stigma.
Thus, we implore high risk merchants to implement the necessary safeguards such as 3D secure transactions, manual reviews and/or partnering with a chargeback management firm to mitigate instances of fraud. In today’s e-commerce environment, opposed to 5-7 years ago, such practices are a must. A merchant’s due diligence also goes a long way in strengthening your relationship with your acquiring bank.
To find out more about Instabill’s high risk merchant processing solutions, our experts are available directly by telephoning 800-530-2444 Monday through Friday (8 a.m.-6 p.m.).
Have a conversation with us and find out the possibilities.