04 / 03 / 20

Is My Business Considered “High Risk” to Payment Processors?

It’s not uncommon for high-risk merchant accounts to get turned away by payment processors. Here are some of the main reasons why:

Industries Subject to Volatile Histories
Does your business depend on the weather, fuel prices, commodity prices, or other circumstances outside your control? If so, some credit card processors will consider your business to be high risk.

Let’s use the travel industry as an example. Businesses in this industry deal with weather changes, economic factors, fuel prices, virus outbreaks on cruise ships, and now pandemics like the COVID-19.  These factors make the travel industry unpredictable, and not all credit card providers want to assume that amount of risk. Keep in mind that all major credit cards (Visa, Mastercard, Discover and American Express) protect consumers from non-delivery of goods and or a service. If you cannot get on a cruise ship because of a hurricane or a virus outbreak, there is a good chance that the credit card company will return those funds to you.

Do You Offer a Free Trial?
Some businesses offer the consumer a free trial of their product or service if the customer agrees to a monthly subscription. If this is something that your business does, it can land you in the high-risk category to payment providers. Customers frequently dispute charges from businesses that follow this model, increasing processing costs for these transactions.

Do You Sell A Questionable Product?
Businesses selling products that promise a more youthful appearance, more stamina, or weight loss, as well as dietary supplements and jewelry are in a category that has a high rate of fraud. These industries are plagued by firms selling knockoff products or running consumer scams, and as a result they are often deemed high-risk. Even if you sell a legitimate good or service, if other firms in your industry use shady business practices, it can affect the willingness of processing companies to handle payments from your customers.

Aliant: A High Risk Payment Processor
If your business falls into any of the above categories, payment processing companies might not approve you. Aliant is proud to be a high risk payment processor! We can provide flexible terms and conditions, enabling you to run your business effectively while monitoring fraud and chargebacks and assisting in keeping your costs down.

Learn more about Aliant’s high-risk merchant services.

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