Compare Quotes. The company’s EPD Gateway is its primary product, with merchant accounts provided through partnerships with numerous major US and international processors and banks. They only started providing high-risk merchant accounts in later years. If your business is primarily online and accepting payments at any given time, having round-the-clock support and easy setup ensures minimal downtime and a fast response to any issue. When it comes to low risk merchant accounts, typically the reoccurring monthly fees are low or minimal, but that is not the case with a high risk credit card processing merchant account. However, these two accounts vary. . Low-Risk Accounts. Low Industry Rates. The first thing to know about choosing a processor is that there are low-risk and high-risk processors, with very little overlap between the two. You can find a business's MCC by calling your processor, reviewing your card statement or by calling the number on the back of your card. You have a zero to low-chargeback ratio. 7 billion in 2018 and are expected to reach $40 billion by 2023. Durango Merchant Services: Best For High-Risk Merchants. A high-risk merchant account is a merchant account for businesses that pose a high risk of fraud and chargebacks by the processor. Low-Risk Merchant: High-Risk Merchant: Average monthly sales volume: Less than $20,000: Over $20,000: Average credit card transaction:. The following are some differences between low and high-risk merchant account that you should know: Low-Risk Merchant Account. They were re-assigned to the more-accurate MCC 5999. Ultra-high-risk industries (like adult, firearms, and e-cigs) can even see higher rates. In general, low-risk retailers have: The volume of sales is typically under $20,000 per month. Stripe: Best for owners of multiple businesses and brands. Low-Risk Fee:- Merchants are evaluated on a case by case basis, and the pricing is determined after analyzing multiple factors. Now let’s take a look at low-risk merchants. Merchant One’s competitive rates range from 0. You can expect to pay a flat monthly fee of about $9. Take note that every payment processor will have different guidelines to determine whether a business. But the type of fee structure and monthly fee will ultimately have the biggest effect on lowering your credit card processing fees. The high-risk processor has no limitations, so the merchant can hassle-free accept several card payments. Here are the types of businesses that can benefit from a high-risk merchant account. Square. Our combined 30 years of experience allows us to confidently offer a distinguished service, with both integrity and great value. High risk rates as low as blended 2. Clearly Payments: Best For Membership Pricing. Merchant One is the best credit card processor with easy and fast approval due to its 98% approval rate. Your high-risk merchant account is different from a regular one in many. Monitor your credit card merchant statements monthly. Our selection criteria evaluate cost, transparency, contract requirements, and features. We offer clients single solution for end-to-end payments, data, and financial management. Merchant acquirers carefully assess various factors, including industry type, transaction volumes, and chargeback ratios, to categorize merchants as low or high risk. Low-risk rates, as low as $99 per month and $. Industry Minimum. Some examples of low risk industries for credit card processing include: Retail: Physical stores that sell tangible goods, such as clothing or. Corepay is a domestic and offshore merchant account provider for both high-risk and low-risk businesses, advertising its services to the adult industry, CBD and hemp vendors, eCommerce merchants, online dating services, and other business categories. As it can be challenging if. Multi-currency processing: High-risk merchant accounts in Europe frequently offer this feature, which can be very important for businesses doing business internationally. Most providers publish a. PaymentCloud is a merchant services provider. Because of this, we can help you get your retail or. Adult merchant processing coverage extends to online dating sites, strip clubs, adult bookstores, toys, and pornographic websites that require membership. We like to think of it as “High Priority”. 2. High-risk Vs. These are the unavoidable, base-level costs of processing credit cards. Authorize. Each Certified Payment Specialists have “been there and done that” hundreds - or thousands of times. Looking to reduce processing fees for your small business? Our list of providers with the lowest credit card processing fees will help you find your best option. Check solutions offer far lower chargeback rates. Some are top-rated third-party processors suitable for low-risk businesses, though we also included a couple traditional merchant account options that offer same-day approval. PaymentCloud: Best For High-Risk eCommerce. Our hard working team at the corporate headquarters. Operating in the eCommerce space requires a way to accept payments online. We offer the leading merchant account credit card processing services in the country. 1. These credit card payment processors offer merchant services with reasonable costs, accessibility, transparency, and good overall value. The company’s EPD Gateway is its primary product, with merchant accounts provided through partnerships with numerous major US and international processors and banks. Read on for three of the best high-risk merchant accounts for WooCommerce, along with other helpful information. Square: Cheapest For New & Seasonal Businesses. These Are the Best Online Payment Processors in 2023. The industry is low-risk overall. Being labeled as high-risk means that your business has a high likelihood of experiencing chargebacks. Aggregators are playing the safe game and want low-risk merchants with low-risk transactions. High-risk businesses can expect processing rates of 3. Low-risk businesses often don’t have any problems getting approved for a payment processor. There are several common characteristics that make a merchant low risk to a payment processor. The monthly fee starts from $9. Square: Best For New Businesses. com has been providing payment gateway services. High Risk Merchant Solutions lists rate quotes “as low as” 2. Helcim: Best for lowest ACH payment rates. 50% + $0. One such option is eMerchant Authority which offers bad credit merchant accounts that your business needs to be able to receive payments. At Shark Processing, our vast experience and expertise in both high and low-risk industries allow us to secure the most competitive processing rates possible. Third is vaping and e-cigarettes. Obviously, you can’t do this in every situation because you don’t. 3% plus interchange if you’re. They’ll review. Check out the list below to determine if your business is high risk. The ability to process credit card payments is a critical factor in your success. Credit repair works for many consumers. When opening an online business, the best way to generate revenue is through sales. 3. It’s a massively tedious process for these organizations to accept debit and credit cards. 5 To ensure effective risk management, banks that initiate transactions for processors should require the processor to provide information on their merchant clients such as the merchant's. Low-Risk Merchant Accounts. A merchant account is a contract between a company and a financial institution that allows the company to accept. PayPal: Best for range of accepted payment types. and low-risk businesses. The major responsibility is that the online merchant is in charge of payment processing. Low-risk merchant accounts tend to enjoy more privileges, such as lower processing fees for every transaction and the ability to negotiate for more favorable pricing and contract terms. SMB Global exclusively deals with high-risk and international businesses. These fees are in addition to interchange. These services have the capability to put structures in place to allow for continuity billing, a seamless gateway integration, and risk mitigation tactics. This. Many of these items will fall off a report on their own after seven years. In the meantime, if your merchant account was canceled due to risk factors, you should immediately look for a new payment processor that specializes in high-risk industries and merchants. has a solution for you through our direct merchant processor and gateway partners, we can provide you with end-to-end payment processing and merchant services. If the industry your business is in or the products you sell is the reason why you're considered a high-risk merchant, there is not much you can do to change that (outside of changing your business, of course). While high risk merchants are businesses dealing with larger transactions of over $20,000, low-risk merchants are small business owners earning less than $20,000 monthly. Get a free card. High-risk businesses are charged greater processing fees than low-risk enterprises to determine the interchange cost they will pay. Low-Risk Merchant Account There are a few differences between a low-risk merchant and a high-risk merchant in the eyes of a payment processor. Learn More . However, firearms merchants are also classified as high-risk and obtaining an online firearms merchant account is extremely difficult. Low-Risk Merchant Account. For a US merchant account, the merchant typically must have the following: 1) US Bank Account. The core of that is that we understand your business model. High-risk credit card processing basically refers to the acceptance and handling of card transactions of businesses operating in industries associated with a higher risk of chargebacks, fraud, and financial instability. 95 per month, plus low processing rates. High Risk Merchant Accounts Vs Low Risk Merchant Accounts? An acceptable level of risk to a payment processor can be demonstrated by a few common factors. 95. It also comes in at No. - $99 account setup fee, 3 year contract. High-risk businesses are also more likely to have returns, refunds, and chargebacks. This pricing is very good in the high-risk processing world. Cashback and reward points for certain merchant categories must. Categories within the VIRP: Low-Risk Merchants: Low-risk merchants are. While different payment processors have different guidelines, there are similarities shared across the industry. You’ll probably face a higher fee to set up your merchant account, and then you’ll pay roughly 4-10% on every transaction compared to around 1-2% for a low risk account, which can have a serious dent on your margins. 5% - 5%. Processors of financial transactions will evaluate your company and assign it to a “high risk” or “low risk” category based on their findings. PaymentCloud Top Rated Credit Card Processor for High Volume Merchants. We won’t penalize you for being profitable, and we will help maintain your account stability. Whether you’re new to e-commerce or have been in business for years, we provide answers to your merchant account needs. PAYARC: Best ACH Processor for Recurring Billing Management 3. Show Summary. A low-risk merchant account, among other things, usually has these. But, if you choose a low-risk processor, then you have many. The Gun & Ammunition Stores industry is booming, boasting an impressive USD 20. Furthermore, if the merchant sells tangible products, the merchant must have a supplier agreement. Fastest payouts: Chase Payment Solutions. KIS Payments: Best For Cash Discounting. We provide Smoke Shop Merchant Accounts credit card processing with Free POS and 2. For more information, visit the Host Merchant Services website or call (888) 727-4538. Leaders Merchant Services – Features a trusted payment gateway, low fees, and top-notch support. Plus, you are low-risk if your average credit card processing amount is less than $500 per transaction. Even low-risk merchant account fees vary widely. This gives many merchants the opportunity to fix problems from previous processing partnerships and work towards a low-risk merchant account. 50% for offshore, 0. We have almost 15 years of experience working with merchants in this category, including merchants with high volume, higher-than-average chargebacks, and other risk factors that are a turn-off to traditional merchant account providers. These credit card payment processors offer merchant services with reasonable costs, accessibility, transparency, and good overall value. High-Risk Merchant Account Processing Solutions. Treati. 3. A lot of standard merchant accounts have no contract. eMerchant Broker approves 99% of the applications from low and high-risk merchants. With high-risk merchant account processing, various factors can make issues about high-risk payments even more nuanced. Market-leading risk and fraud protection. While low-risk sellers are also charged a refund fee high-risk sellers often pay larger chargeback fees. low-risk merchant accounts have become an essential topic as various factors can determine your risk level as a. PAYARC – A great option for subscription-based businesses looking for advanced security. The merchant sells to countries that have a high level of fraud. MERCHANT ACCOUNT. Accepts both High and Low risk merchants. Easy, low-cost, and flexible merchant services, combined with the best free POS software, makes Square the best value for new and small businesses. It allows merchants to accept and process payments in foreign currencies, typically through online transactions. Clover offers credit card processing services on a subscription basis, with fees ranging from $9. The company’s EPD Gateway is its primary product, with merchant accounts provided through partnerships with numerous major US and international processors and banks. 2. Shift Processing Reputation and Reviews. Interchange fees are set by Visa, Mastercard and other card brands. The best merchant services are companies that offer a wide variety of payment options, low fees, and easy-to-use hardware and software for effortless payments. In the United Kingdom, it is roughly 3. Merchant One is the best credit card processor with easy and fast approval due to its 98% approval rate. Helcim, Square, Clover, Stripe, PayPal, Shopify, Chase, Stax, Payline and Dharma make our list of best payment processing companies for small businesses. Finding the best ACH payment processing companies for your small business often comes down to selecting a reputable company that can provide both ACH and credit/debit card processing in a single package. Reading Time: 8 minutes The vape and e-cigarette industry is nothing short of electric. But companies like PaymentCloud can help you find competitive processing rates. 3. Authorize. Unsurprisingly, their business indeed sells fireworks, which are associated with higher risk. 3. Merchant One is the best credit card processor with easy and fast approval due to its 98% approval rate. Call us Toll Free (866) 509-7199. This merchant account allows the business to accept card payments but will come with additional requirements and fees. category. Firearms Merchant Accounts. NACHA, the governing body of The Automate Clearing House (ACH), implemented same-day ACH processing, effective March 16, 2018. They were re-assigned to the more-accurate MCC 5999. Anything above this falls into the high-risk credit card processing category. All merchants are responsible for paying certain fees in order to process credit card payments. A high-risk merchant account is a type of business account offered by a payment processor or a bank, designed specifically for businesses deemed “high-risk. 2) US Corporation. But the type of fee structure and monthly fee will ultimately have the biggest effect on lowering your credit card processing fees. PaymentCloud: Best For Nonprofits Considered High-Risk; 5. As with Square’s extremely popular services for low-risk businesses, the company fully discloses all prices for its CBD program on its website. A high-risk merchant account is a special type of payment processor created for businesses with a higher risk of chargebacks and fraud. We make High Risk Easy. A high-risk merchant account will take far longer to approve than a low-risk one if you're hoping for rapid approval. Low risk industries are generally those that have a low incidence of fraud and chargebacks, and as a result, they typically pay lower processing fees and have fewer restrictions on their accounts. Customer support for point of sale (POS) transactions. Defend your business against uncharted fraudulent activity and chargebacks. Low risk industries are generally those that have a low incidence of fraud and chargebacks, and as a result, they typically pay lower processing fees and have fewer restrictions on their accounts. Flagship Merchant Services: Best for negotiating rates. The business or the owner has a bad financial history. High-Risk vs. 5% to 3. 3) US Signer – Typically a US resident with >50% ownership is the signer but LLCs can be “Manager-Managed”. Due to the division of businesses into low-risk and high-risk merchant accounts by payment processors, this is the case. - Load balancing feature for high risk merchants. High risk merchant account fees. Soar Payments — Best for. The consequences of being on the MATCH list are devastating, and many businesses cannot. PaymentCloud: Best For High-Risk eCommerce. Some examples of merchant services providers include Helcim, Square and Stripe. 800-567-3019. With a high-risk merchant account, the payment processor and card networks assume that the business has a greater risk of defaulting on payments, incurring many chargebacks, or committing fraud. 10 per transaction (low-risk accounts) Processing rates vary by the acquiring bank/back-end processor (high-risk accounts) $15/month account fee (low-risk accounts). This article examines what a high-risk payment processing/merchant account means and the businesses needing one. : Best for invoicing Paysafe : Best for businesses in high-risk industries PayPal : Best for digital payments Merchant One : Best for companie with less-than. Whatever your situation is we have a low cost solution. Claims made by payment processors to “pre-approve” or “instantly approve” high-risk merchants within 24-48 hours are very misleading. Leap Payments Agent/ISO program is specifically designed around getting your high risk merchants approved and keeping them open for the long run. Seven tools to select a merchant processor who will save you money, time, and enhance your business through superior products and services. A high risk industry is a sector of business that banks categorize as riskier due to potential issues with their payment processing. The company specializes in merchant accounts for high-risk businesses. Worldwide vaping sales reached $15. National Processing. Support for. Businesses classified as low-risk typically operate. Ideally, keep your average credit card charges below $500. For example, merchant sells nutraceuticals. Definition of Low Risk Merchant. These businesses often operate in industries that, for various reasons, carry a higher level of risk. If it can’t, it’ll pay you $500. Low rates and fast funding are guaranteed. It affects customer experiences, your finances, and more. The processing costs for all transactions will often be higher than those charged by low-risk merchant accounts. Businesses with low credit scores are less likely to be lent money by financial institutions. Some are top-rated third-party processors suitable for low-risk businesses, though we also included a couple traditional merchant account options that offer same-day approval. PaymentCloud: Best overall. Host Merchant Services offers true month-to-month billing with no long-term commitment to all low-risk businesses. Stax by Fattmerchant. PaymentCloud — Best for businesses looking for completely customized payment packages, fraud prevention tools, advanced payment gateways, and merchant funding. Ultra-high-risk industries (like adult, firearms, and e-cigs) can even see higher rates. Average transaction of less than $500. When it comes to credit card payment processing, you might have difficulty getting approved for a high-risk merchant account depending on what vertical you fall in — but it can also be due to a history of fraud, a low credit score, or a high ratio of chargebacks. Low-risk merchants are: Transaction volume is deficient (less than $20,000/month). The term bad credit merchant account simply means a merchant. Each processor and acquirer calculates risk differently. A wholesale merchant, also known as a wholesaler, purchases goods in bulk. 1. Other factors that are observed are just how heavy the business. Square. INT + 0. Merchant Accounts for businesses are classified as risky for many reasons, including brand new business, poor credit history, operates in a high risk industry, processes a high volume of transactions or high ticket transaction values. High risk merchants are less likely to get approved for a merchant account with many processors. 16. We understand the nuances of different business models and leverage our deep connections with acquirer banks to get you the lowest rates guaranteed. Payment processors have different guidelines but have common factors around their market. Some examples of low-risk merchant accounts are gas stations, grocery stores, pet stores, auto part stores, and parking garages. Vape, Glass, CBD and Kratom Approved. These businesses tend to be more stable, in lower risk industries, process a lower volume of transactions, and have lower average ticket. Despite having their own set of rules to determine a high-risk merchant, there are a few common differences between the two. Often called wholesale or base fees. Whether you are considered a high-risk or low-risk merchant, CTI Processing, Inc. 2. Signature Payments is the #1 payments company in the industry of high risk vape and E-Cig merchant accounts. A low risk merchant runs an online company with consistent and non-regulated online transactions. TL;DR: A high-risk merchant account is a service that processors offer so that entities in fraud or chargeback-prone industries can accept card payments. Low-Risk Merchant Account?. They range from $10 to $50 for most companies. Maintaining a high-risk. Transaction processing rates are notably higher than the company’s low-risk rates, but the lack of account fees makes it a great alternative to getting a traditional high-risk merchant account. These businesses often operate in industries associated with high chargeback rates, potential fraud, and legal or regulatory issues. 95 USD ($18. However, PaymentCloud also handles payment processing for medium- and low-risk businesses. High-risk merchant accounts are assigned to a business for a number of reasons, some of. High-Risk vs Low-Risk Merchant Accounts. Higher payment processing fees. Read Full Story. It is the acquirer’s responsibility to monitor a merchant’s compliance and ensure that High-Risk Merchant Account vs. Authorize. Chase Merchant Services: Best for fast deposits. Merchant One offers a strong slate of features. Low risk industries are generally those that have a low incidence of fraud and chargebacks, and as a result, they typically pay lower processing fees and have fewer restrictions on their accounts. High-risk businesses can expect processing rates of 3. net offers credit card payment services for more than 430,000 merchants, including merchants that could be categorized as high-risk. Square credit card processing is a useful service for low risk merchants. When it comes to merchant accounts, there are high-risk and low-risk businesses. 3 Signing up for NMI: 2 types of website owners. With an emphasis on personal attention and customized solutions for “bricks-and-clicks” companies (i. A subsidiary of Visa, Authorize. Interchange-plus & membership pricing. Not the best credit card processing option for low-volume businesses; 7. , with eMerchant Authority. Instead of requiring a contract, the company. Fees are the main tangible difference between a high and low risk merchant account. Durango Merchant Services has been in the payment-process game for over two decades. Standardized fees so you’re never surprised by a higher-than-usual cost. 3/5 based on more than 15 reviews. High risk and low risk. FFL, or premium cigars, the next step after a QuickBooks rejection is to look for viable merchant account and payment processing options. This means a merchant doesn’t physically see the customer’s card, and there is a higher risk for fraud and chargebacks. Moonlight Payments Overview. Learn more about our high risk merchant processing services by submitting a message or calling (800) 993. 1. In contrast, high-risk payment processing involves a higher level of risk. Our selection criteria evaluate cost, transparency, contract requirements, and features. Square: Best for point of sale (POS) Payment Depot: Best for flat-rate pricing. 5% - 5%. Others praise the customized gateways for recurring billing and invoices. No monthly minimum (low-risk accounts) Interchange + 0. Price: 2. Finding a merchant account provider for your subscription based company is the first step to processing transactions quickly and efficiently. With over five years of. PAYARC – Multiple cash discount programs and robust support for international payment processing. If you can limit your chargebacks, you should find that more payment processors accept you as a low-risk merchant A business that accepts credit cards for goods or services. The merchant account provider will approve your application if you fall into its low-risk. High-Risk vs. ProMerchant: Best ACH Processor for Flexible Pricing Options 6. HMS was originally a traditional merchant account provider that equips low-risk businesses with payment processor systems. On the other hand, low risk merchant accounts. Unlock the Benefits of a Low-Risk Merchant Account for Seamless Transactions. No percentage markup: Payment Depot. Rates and Fees For Chinese payment processors. Stax: Best for avoiding transaction fees. Dharma’s processing rate for high-risk businesses is interchange rate + 1. To define a low-risk merchant account, it’s important to look at the common. Stricter terms. Leaders Merchant Services: Affordable Recurring Payment Processor With Negotiable Contracts. Low-risk merchants. What Is A High Risk Merchant Account? Initially, when you apply for a merchant account, you will be required to submit both tax and business information as well as undergo a credit check. During the underwriting process, if anything in your application tips off the payment processor that you are a high risk merchant, one of two things will. 17 According to the article entitled "Merchant Acquirers and Payment Card Processors: A Look Inside the Black Box," authored by Ramon P. FOR EXAMPLE Pharmacy A merchant. Card-not-present fraud is a type of credit card scam where the customer doesn’t physically present a card to the merchant during a fraudulent transaction. 1. 1. Certain industries simply carry inherent risks. National ACH specializes in offering high-risk merchant accounts to process ACH, e-checks, debit cards, and credit cards. Here’s an overview of what may land you in the high-risk credit card processing category as opposed to the low-risk one: High risk. Merchant Funding. You can expect to pay on average ~$100 per month for a high risk merchant account, on top of a $500 credit card. o flag high risk merchant accounts, payment processors will often use your tax information, business financials, and a credit check to determine whether you fall into that category. However, compared to low-risk merchants, high-risk merchants typically pay higher fees. They will categorize your company as low risk in certain cases, such as when: Your business processes transactions worth less than $20,000 each month The average ticket size for your business is. Although they’re expensive, they allow companies that would otherwise have to operate on a cash-only basis to accept credit and debit cards, ACH transfers, and other payment methods. Rely on the Instabill team to get you a high risk merchant account business, today. They also need to manage inventory, develop the company brand, and promote the products or services. PayPal: Best For Seasonal Or Low-Volume Businesses. Our specialization in UK high. CardMax Payments offers flexible accounts, easy set-up, and competitive pricing. SMB Global is a merchant service provider partner of Payline Data, a popular and reputable low-risk processor. 25% + $0. Your average ticket size is significantly less than $50.