Are You A High Risk Merchant?
Velcro understands how significant processing services are for difficult-to-place retailers. Yet, simply because your business may fall into a non-traditional kind, does not mean that you need to continue coping with the hassle of locating a processor.
The first thing that you need to understand is that while one provider might consider you high risk…another may not. It all depends on their risk department (underwriting) guidelines. If the guidelines are strict, then you won’t get approved. If the guidelines are relaxed, then you’ll have yourself a merchant account. It’s that simple.
Reasons for High Risk Categorization
Below are just a few reasons on why your company was determined to be a high risk merchant:
A startup company with no or little bank card processing history
History of insolvency, poor credit score
A sector using a high chargeback ratio (including travel)
A company that processes high quantity with card not present transactions (ecommerce, over the telephone)
High average ticket number (for example airline tickets)
History of merchant account terminated with a bank
Here are some of the types of businesses that processors will deem as High Risk – All are welcome to contact us here at Velcro as our High Risk Merchant Account Marketplace Providers actively seek these accounts.
Airlines – including local plane charters
Online Stores – (Amazon, Shopify, Ebay Stores)
Auctions – (online and off line)
Automotive Brokers and wholesalers
Business Opportunities – (MLM, Network Marketing, Direct Sales)
Casino, Gaming or Betting (including online)
Smoke or electronic-cigarette nicotine cartridges or sales
Coins, autographed collectibles or collectible money
Credit or debt services
Drug paraphernalia (smoke, vapor, glass shops)
Event ticket brokers
Fantasy sports sites
Finance agent, loan adjustment services or financial consulting
Finance preparation, counseling or strategy
“How To” kind sites (i.e. “Learn How-To Earn Money in The Web”)
International retailers (non US based)
International freight transport or import/export
Attorney referral services
Magazine subscriptions and sales
Offshore corp. organization services
Search Engine Optimization services
Sports forecasting or likelihood making/gambling
Third party processing, factoring retailers (vacation rental agents)
Time-shares time-shares or marketing
Vacation rentals (unless property is possessed by retailer)
Vitamin and nutritional supplement sales – drugstore, diet pills, prescription pills, health nutritional supplements
Extended warranty businesses
Weapons of any type – ammo, knives, stun guns, or firearms.
If you need help getting approved for a high risk merchant account or want to see about increasing limits please contact us today.