High Risk Merchant Account Facts and Fiction

Dec 18, 2013 by

High Risk Merchant Account Facts and Fiction

Learn the truth about high risk merchant accounts. We separate the facts from fiction to give you a clear sense of your options if you have been flagged as a high risk account.

No two businesses are the same, especially when it comes to how they are treated by processors of credit card services. One example is when larger businesses receive a “volume discount” on their fees because of the high amount of transactions they do each month. Another example is when a business is flagged as a “high risk” by merchant banks. While it’s not impossible for a company like this to finding a solution to accept credit cards, it does become more challenging.

There are a lot of myths about high risk merchant accounts floating around. Some of them are based on assumptions and others are just speculation. In many cases, these myths keep businesses from taking the steps they need to secure merchant accounts that will allow them to accept credit card payments as part of their normal business.

Here are a few of the most common misconceptions about high risk merchant accounts and what the truth actually is:

Myth: It’s a business’ fault that they have been marked as a high risk merchant account. Chances are they are doing something shady.

Fact: While some businesses are considered to be high risk by merchant banks because of issues like previous credit issues, many legitimate companies are also placed on the list because of the industry they are in. Companies that are in industries with a high rate of credit card fraud are more likely to be considered a high risk. This can include businesses that do antiques, sports memorabilia, online gaming and ticket sales.

Myth: Individual merchant banks decide who is considered to be a high risk.

Fact: Many businesses are considered to be high risk after being placed on the MATCH list, which was originally developed by Mastercard and is considered to be a “black list” for credit card service providers to evaluate potential clients. A company gets placed on the MATCH list by a bank it has worked with for various reasons including suspected fraud and overcharges, bankruptcy or identity theft.

Myth: Once you have been flagged as a high risk merchant account, it will be impossible to secure credit card payment services.

Fact: While it does make it more difficult, merchant account companies  Payment Solutions, Inc. are often willing to work with companies that have marked as a high risk. Merchant bank credit card service providers will look at a potential client on an individual basis to determine their level of risk. In many cases, businesses are able to secure credit card services at rates that are the same or similar to other companies.


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