What is a High Risk Merchant Account?

What is a High Risk Merchant Account?

A high risk merchant account is an account for credit card processing where the processing banks have classified the merchant as being high risk. If your business has been classified as high risk, most commonly this is due to your industry type and the amount of chargebacks you face during the normal course of running your business. For example, a business in the travel industry can be considered as high risk due to the amount of cancellations that can occur naturally due to weather, flight cancellations and etc. For this reason the merchant may receive a higher than normal amount of chargeback's, and thus be considered a high risk business. Another example would be for a Dating website. In this industry is common for a customer to initiate a chargeback and say they never visited the site, or "it wasn't me". For face to face transactions, a signature on the credit card receipt will help safeguard against chargebacks. A website may log the IP address and time the website was accessed by the customer. For high risk merchants it is important to keep on top of chargebacks.  Some examples of High Risk merchant accounts include:

Tobacco Sales
Annual subscription magazine and membership fees
Dating Internet Services
Software downloads
Poor Credit Merchants
Cash Advance
Penny Auction
Terminated Merchant Accounts

Payday Loans
Extended Warranties
Satellite TV Repair
Time share sales
Internet Computer Sales
Internet booking of travel or cruise tickets
Out-bound Telemarketing
Personal Injury

Seminars
Hypnotherapists, Psychologists, Psychiatrists
Educational Software
Law Firms
PPI Claims
Insurance Brokers
Scholarship Programs
Tech Support

Stock Trading
Internet sales of large ticket electronics
Network Marketing Companies
International Sales
Internet sales of high end jewelry
Credit Repair
Collection Agency
Financial Services

Many domestic merchant account providers deny payment processing to high risk businesses, however, at Netcom PaySystems we understand that your business depends on the ability to accept credit card payments. We are here to not only make that possible but to make it simple, secure and affordable so that you can focus on your business.

Start Accepting Credit Cards Today by calling 800-875-6680 or visiting www.netcomhighriskmerchants.com to learn more about the products and services that Netcom PaySystem has to offer.

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