By Mashum Mollah
Have you been shopping around for merchant accounts, but keep getting turned down by providers? You might need a high-risk processing solution.
There are dozens of industries the payment processing industry considers high risk. What this means is your business is considered to be at a higher risk of having chargebacks.
If banks deny you a merchant account or propose steep fees, they might think your business is risky.
If you operate in any of these five industries, you’ll want to consider a high-risk merchant account.
1. Adult Industry Businesses Are Usually Considered High Risk
Businesses in the adult industry are often labeled as high risk by payment processing companies.
You might benefit from working with one of the top payment processing companies. These providers are able to offer you a high-risk merchant account that meets your needs.
2. Loans and Debt Collection Often Need High-Risk Processing
It might seem odd for any financially oriented business to be considered high risk. Loans and debt collection services are often placed in this category. Why?
There’s a high chance the loan or debt won’t be recovered or repaid. This means the merchant is on the hook for the outstanding amount.
3. Any Business Offering a Membership Model is High Risk
Subscription boxes are all the rage right now, so it might surprise you to learn these services are high risk. They might have trouble securing a merchant account.=
The problem is within the subscription model itself. Subscriptions can usually be canceled at any time. A sudden influx of cancellations can result in many chargebacks and a loss of revenue in short order.
If you’re launching a subscription box service, you’ll want to work with a company like High-Risk Solutions. Top processing companies help you get the best rates of high-risk merchant accounts.
4. Airlines and Other Travel Services Sometimes Have Trouble
Here’s another surprising entry on the list of high-risk processing industries. Airlines and other businesses in travel and tourism are often considered high risk.
The reason? You can’t control the weather. A storm could cancel hundreds of flights, resulting in hundreds of customer refunds.
There are other reasons businesses in the travel industry are considered high risk. Almost all of them means your business could benefit from a high-risk merchant account.
5. Nutrition, Vitamins, and Supplements Are Risky Ventures
A final high-risk category is a nutrition, vitamins, and other health supplements. Many of these businesses operate on a subscription model. Customer satisfaction with the product also ranges widely, leading to returns and cancellations.
If you sell these products, be sure to research top processing solutions for high-risk merchants.
Are You in a High-Risk Processing Industry?
Was your industry on this list? If not, you might want to talk to the experts about high-risk processing anyway. Many more industries benefit from high-risk merchant account solutions.
Looking for more business advice to help you grow? Check out our blog for more handy tips and great advice.
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