Is a Merchant Account Right For Your High-Risk Business?

If you run a business, increasing your revenue is likely one of your top priorities. Accepting credit card payments is a simple way to grow. If your customers can pay you more easily, they are more likely to buy. However, if you have a flawed credit history or are in a risky industry, it may be difficult to find a credit card processor to work with. Instabill’s high risk merchant account may be the answer you need.

Benefits of a Merchant Account

A merchant account is a type of bank account that businesses use to accept payments from credit and debit cards. Some merchant accounts accommodate other payment types as well such as smartphone apps.

Typically, there are three parties involved in the account: a merchant, a bank and a payment services provider. The merchant is the business making card sales. The acquiring bank is the financial institution that provides the account, underwrites the risk and handles the transactions. Finally, the payment services provider that provides the processing capabilities and streamlines transactions for the bank.

Businesses small and large can benefit from accepting credit cards. This is true for both B2C and B2B organizations. These are a few of the possible advantages for your business:

  • More Convenient Payments: Many consumers and business buyers prefer to pay with credit cards. They are more convenient than carrying cash, writing checks or making ACH payments. If you accept credit cards, it is easier for your customers to pay you. That is a mutually-beneficial reason to open a merchant account.
  • Less Complexity: Credit cards are simple compared to many other payment types. For example, checks can bounce, and cash is easy to lose. With a credit card, everything is handled electronically and instantly approved or denied. This is especially significant if you have a brick-and-mortar location and can simply swipe or insert the card.
  • Simpler Accounting: In a similar vein, the accounting for credit cards is simplified. Since everything is electronic, you have an instant record of the transaction. In many cases, merchant accounts can integrate with your accounting software.

Having a merchant account makes growing and running your business easier. However, if your business is high risk, you may have a hard time finding a processor to work with you.

Options for a High-Risk Business

A business may be labeled as high-risk due to having a flawed credit history. Some industries are considered high risk due to their reputations, risks or finances. For example, payday lenders are generally considered to be relatively risky merchants. Merchants in industries with high rates of fraud or chargebacks may also struggle to get approved.

Fortunately, some payment service providers and acquiring banks are happy to work with high-risk businesses. They may ask for additional documentation, only accept certain high-risk industries and/or impose caps on the volume of transactions.

If you are a high-risk merchant, these limitations can feel cumbersome. Many merchants don’t know they are high-risk until they are declined or receive an account with unexpected conditions.

Finding the Right Provider

Some payment services providers and acquiring banks are better equipped to work with high-risk businesses than others. Finding the right provider for your merchant account can help you minimize its drawbacks and maximize its advantages.

At Instabill, we have over 20 years of experience offering high risk merchant accounts. We start our process with a short phone call to learn more about your business. Following this, we determine which acquiring bank is best suited for your industry and situation. We will then guide you through the application process.

  • Greater Chances of Approval: Working with Instabill, you have a higher chance of being approved even if you are in a high-risk industry. We help you will the application and approval process, so you aren’t figuring it all out on your own.
  • Better Terms: We can help you secure more favorable terms. With the right acquiring bank, you will get lower fees, increased or eliminated volume caps and fewer limitations. This could be the difference that lets you fully harness the growth advantages of having a merchant account.
  • Stronger Relationship With the Bank: Having a merchant account isn’t just about getting approved. When you choose Instabill, we will find a bank that understands your business. This can make the continuing relationship with that acquiring bank easier for everyone.

We continue to help you make the most of your merchant account even after you are approved. Instabill is more than just a payment services provider, we are also a partner for your business. Our goal is to help you get the most benefit from your merchant account as possible.

Opening a high risk merchant account with Instabill may be what your business needs to grow. Even if you’ve been turned down by other providers, you may still be eligible. This is your business’ opportunity to start accepting credit card payments.

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