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Credit Card Processing: Can High Risk Businesses Get a Merchant Account?

How to obtain a Merchant Account

Scott Burke

November 19, 2007

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Is your business considered high risk? And can you still get a merchant account?

In credit card processing, there are many different reasons why a business may be considered high risk.

- First, it may be the actual business industry that has been tagged "high risk", such as travel, multi-level marketing (MLM), e-commerce, aggregators or collection agencies.

- Second, the reason may simply be the business volume that places a business in the high risk category.

- And third, it may be a reflection of the business or the business owner's credit history.

The question still arises: Can High Risk Merchants Obtain a Merchant Account?

The answer is YES. But you have to know where to go for the expert advice and guidance needed so you and your business are safe from excessive expenses often associated with high risk merchant accounts.

Working with an expert in high risk merchant accounts is critical to the success of obtaining the best merchant account solution for your business.

5 Points to Consider When Selecting the Best Merchant Account for Your High Risk Business:

- Your application needs to be handled by a high risk professional expert
- Your high risk merchant account processor should have experience with merchants in your business industry
- The high risk merchant account processor needs to have access to numerous credit sources - including more liberal banks and offshore options
- If your business does have to be taken offshore, your high risk experts need to work on getting the lowest rate available
- All rates should be disclosed prior to contract with the high risk credit card processing company

3 Insider Tips To Ensure Approval for a High Risk Business Merchant Account:

- Do you have a poor credit rating? Be honest about disclosing any past financial challenges. Acknowledging previous liens, bankruptcies, judgments, etc. will only improve your credibility and alleviate one more barrier.
- Be open to offshore options as sometimes they can offer your business the best merchant account solution.
- Shop around for a credit card processor that has expert knowledge in high risk merchant account approval - and don't be afraid to ask questions. The more you educate yourself in the process, the more you will recognize a good high risk merchant account processor giving you intelligent, experienced answers to your questions.

Operating a high-risk business does not exclude you from being able to process credit cards. Like any business, you want to provide your customers with as many non-cash payment options as possible. It is statistically proven that accepting credit cards help generate revenues and stimulate impulse purchases.

Owning a high risk business doesn't mean you won't be able to open a merchant account. It does mean, however, that you may have to do a little more in setting one up that is right for your business. Do your "due diligence", shop around and ask questions to find a credit card processing company that specializes in high risk and offshore merchant accounts and will offer their expertise to businesses who fall into the high risk category.

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