Any account that gets approved by the financial institution like the bank to accept the business cards like credit card and debit card for the payment of their purchase from the customer is a merchant account. Every merchant account has a certain level of risk depending upon the business type. If a business has high risk involved, the company applies for a high-risk merchant account. This totally depends on the nature of the business that is to be undertaken. There may be several reasons that make a merchant account a high-risk account. Let us know some of them:
1. A merchant will be regarded to be of High Risk if he has been negative on his account history due to some company finances. This will make him unable to support the volume of sales that has been applied for.
2. Every product has its liability charge back period. A customer gets 18 months to issue this charge back if he/she is an annual member. If your product has no longer this liability charge back period, you will be boycott from merchant credit card processing too, and you are a high-risk merchant.
3. If your merchant account has risk associated with finances, banks will turn your account into risk merchant account.
4. Even if your organization has high charge backs, the bank does not feel safe about your account. In that case, your account is high-risk merchant account for the bankers. It may not be always associated with you. It is also associated with the organization you are working with.
5. If the business or the company you are associated with has been blacklisted by any of the credit card companies, the business is likely to have a high-risk merchant account. This will put the company in serious jeopardy.
It is true that once you have a high-risk merchant account, you will have a difficult time gaining the typical merchant account. This will also put you in trouble in using the cards for money processing. However, there are some agencies or institutions supporting those people who have high-risk merchant account. They assist them in channelizing the money and making it easy to charge money or use the money processing cards.
So, what are you waiting for? If you are one of the merchants with a high-risk merchant account and if you are having trouble with making an online payment via business cards as a debit card or credit card, you can deal with the agency who support those with a high-risk merchant account. There are some criteria that you will have to meet to get the assistance,however. However, this is such a life saver for those who have been blacklisted.
