We’ve said over the past few years that a domestic high risk merchant account can be generally difficult to obtain. In fact, there was a time when we would advise between 75-80 percent of high risk merchants who contacted us to utilize an offshore merchant account solution. One could make a valid argument that finding domestic high risk processing has been increasingly difficult the last 4-5 years. The evidence?
- Operation Choke Point
- Visa’s Chargeback and Fraud Monitoring program
- Lately, the news about Marstercard (and Visa) cracking down on negative option billing
Add to that list a gradually growing number of acquiring banks that have simply grown weary of assuming the risk some high risk merchants bring. If said acquirers are not shunning high risk industries, those that do offer solutions are rightfully strengthening their underwriting processes and requiring more KYC documents which can lead to a longer approval process.
More than ever, getting a domestic high risk merchant account is about having the right connections and partnerships, something Instabill continues to build upon to accommodate high risk merchants in legal, legitimate industries. It is true some acquirers are shying away from merchants and businesses considered high risk, but we are partnered with several who welcome them.
One partner of ours in particular stands out.
It’s not about your industry – we operate case by case
Last week we blogged about how merchants can prequalify their business to get a high risk merchant account. In it, we described how we get inquiries daily asking if we have solutions for tech support, continuity or any high risk industry.
Indeed, the industry type is an important factor we take into consideration when boarding merchants, but certainly not the only factor. Every merchant is unique, every domestic high risk merchant account we provide is custom to the merchant.
Additionally, every acquiring banking partner is unique.
Our newest domestic high risk merchant account solution: E-checks for high risk e-commerce
We’ve established a partnership with an acquirer that has proven appealing to high risk merchants and businesses, including those merchants of obscure industries, with imperfect credit and even MATCH list history. It is an e-check solution that works similar to an online credit card processing with a plethora of features:
- Month-to-month contracts
- Four-tiers of e-check processing plans from which to choose
- No reserves or holds
- PayNow button feature for website
- Signature capture feature
- Unlimited routing and account number verification
- Telephone and e-mail support
- Setup fees contingent on chosen plans
Like every partnership, however, our solution has standards by which merchants must abide.
- Merchants must be registered in the U.S. or Canada
- Merchants must have a valid social security number and EIN number
- Industries vetted and approved on a case-by-case basis
- Merchants can upgrade or downgrade to a plan at any time while fees will be prorated
We repeat: E-check solutions are invaluable
Instabill has long said that every high risk merchant should consider offering some type of check or e-check solution, especially in the current climate, that can act as a safety net of sorts. Once or twice each year, we’ll receive a sudden deluge of calls from merchants in the same industry, seeking a domestic high risk merchant account solution because their acquiring bank had recently served notice.
It happens. It is part and parcel of high risk payment processing: sometimes acquiring banks no longer want to own the risk of certain business types.
In that regard, having an e-check solution can serve as a ‘bridge’ of sorts; a solution to support a merchant until they are able to find another credit card payment processing solution to offer customers.
To find out more about our domestic high risk merchant account solution, speak directory with one of our merchant services experts at 1-800-530-2444.
