High Risk Merchant Highriskpay.com

Understanding High Risk Merchant Highriskpay.com

Highriskpay.com is a high risk merchant account provider that specializes in helping businesses classified as “high risk” get merchant services. Here is an overview of high risk merchant accounts and an evaluation of Highriskpay.com’s services:

Key Takeaways:

  • High risk merchant accounts are for businesses that traditional banks deem too risky to take on. This includes industries like CBD, cryptocurrency, and adult content.
  • High risk merchant accounts typically have higher processing fees to offset the increased risk. Rates range from 3% to over 10% based on risk level.
  • Highriskpay.com is a veteran in the high risk space having served merchants for over 10 years. They have expertise in many niche industries.
  • Highriskpay.com offers transparent pricing, dedicated account management, and advanced fraud protection tools.
  • Like any processor, Highriskpay.com has pros and cons merchants should weigh when considering them as a partner.

What is a High Risk Merchant Account?

A high risk merchant account allows a business classified as “high risk” to accept credit card payments. High risk businesses are those that traditional banks and processors deem too risky to take on due to the increased chance of:

  • Chargebacks – when customers dispute a charge on their statement.
  • Fraud – stolen cards or unauthorized use.
  • Non-delivery – products/services not delivered.

Some common high risk industries include:

  • Adult entertainment
  • CBD and hemp
  • Cryptocurrency exchanges
  • Debt collection
  • Essay/resume writing
  • Multi-level marketing
  • Online gaming/gambling
  • Online pharmaceuticals
  • Subscription boxes
  • Tech support/telemarketing

Banks avoid these industries to minimize their own risk exposure. This creates a need for specialized high risk processors that are willing to take on these merchants while charging higher rates and fees to account for the increased risk.

How High Risk Merchant Accounts Work

High risk merchant accounts work similarly to traditional merchant accounts with a few key differences:

  • Higher processing rates – High risk accounts will pay higher transaction fees including mid to high qualified rates (3% to over 10%), higher non-qualified and international fees.
  • Reserves held – A percentage of sales (15% or higher) may be held in a rolling reserve as additional protection against losses.
  • Higher application scrutiny – More due diligence is conducted on high risk applicants including background checks, financial statements, and processing history.
  • Advanced risk monitoring – High risk accounts usually require integrating fraud screening tools and may have lower monthly volume caps.
  • Shorter contracts – High risk accounts typically have 6-12 month terms that auto-renew whereas most traditional accounts have 3+ year contracts.

The scope of underwriting and higher fees offset the increased risk these industries pose. This makes high risk merchant services viable where traditional processors cannot serve them.

Evaluating Highriskpay.com’s Services

Now that we’ve covered the basics of high risk merchant accounts, let’s take a look at Highriskpay.com and how they serve high risk merchants:

Background

  • Founded in 2002 making them a veteran high risk specialist.
  • Headquartered in Houston, TX but provides merchant accounts globally.
  • Serves over 10,000 merchants across many high risk and offshore categories.
  • Has dedicated account managers with years of experience.

Services Offered

  • Domestic and offshore merchant accounts.
  • Terms as short as month-to-month.
  • Virtual terminal, ecommerce, mobile and point-of-sale solutions.
  • Access to many domestic and international banks.
  • Integrations with all major shopping carts.
  • PCI compliance tools.

Pros

  • Application process is transparent with upfront pricing.
  • Rapid approvals for new accounts.
  • Provides dedicated account manager.
  • Offers Fraud screening and chargeback management tools not typical for most high risk processors.

Potential Cons

  • Mixed reviews on customer support responsiveness.
  • Contracts may auto-renew without notification.
  • Early termination fee of $495 if closed within first year.
  • Accounts approved on one condition can later be re-reviewed and re-priced higher.

Who Highriskpay.com is Best For

  • High risk ecommerce merchants selling digital products/services.
  • Businesses with higher sales volumes ($500K+ per month).
  • Merchants needing a domestic processing partner with experience in their vertical.
  • Those needing fraud protection services bundled with processing.

Who Should Think Twice About Highriskpay.com

  • Brick and mortar retailers or restaurants.
  • Startup ecommerce merchants with lower sales volumes.
  • Businesses selling in prohibited categories like payday loans or weapons.
  • Those wanting month to month terms without early termination fees.

Conclusion

The bottom line is Highriskpay.com specializes in serving high risk merchant accounts. Their experience and proprietary fraud tools provide a viable processing solution where traditional processors fall short.

However, as a high risk provider their pricing and account management practices also cater to risk tolerance over customer experience. Performing due diligence on reviewing their BBB rating, online reviews, and keeping these pros and cons in mind is advised for any business considering applying.

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