A high risk business is one that has a high level of chargebacks – cancelled payments and refunds. Because banks and payment service providers bear all of the risks connected with transaction processing, not all of them want to operate with high-risk enterprises. As a result, if your organization falls into this category, you will hunt for a payment service provider ready to undertake high-risk payment processing.
Setting up high-risk payment processing usually entails a more extensive review of your e-commerce business before acquiring a merchant account because the entity in charge of processing your transactions does not want to endure risks and losses. The high-risk sector is continually plagued by money laundering, fraud, and cybersecurity concerns. As a result, payment gateways must be more secure than ever before. However, operating a high-risk business does not exclude you from accepting and processing credit card payments from your customers. Many third-party payment service providers and processors will gladly assist you with this. Before you become worried, let’s look at what types of businesses are classified high-risk.
Which businesses are considered high-risk?
A number of industries are considered high-risk. They may be considered as such due to a variety of risks including reputational risk, money laundering risk, or the usage of a complex business model that is not favoured by banks.
Here is a list of industries that may have difficulty obtaining a merchant account:
- Betting / Gambling / Online gaming
- Dating
- Forex
- Telemarketing
- Debt collection
- Adult entertainment
- Subscription-based applications
- Software products
If your company falls into one of the above categories, be prepared for more thorough verification and verification of your credit history, chargeback rate, and other critical factors.
The list of merchant account providers for high-risk industries is becoming increasingly limited. As a result, finding a dependable payment service provider for these high-risk merchant services is important.
Things to look for when choosing a high-risk payment processor
There are numerous innovative features available in high-risk payment gateways that increase the possibilities for high-risk merchant accounts. Reliability and security should be mutually beneficial in the partnership between a high risk merchant and a PSP. When selecting a high-risk payment processor, we recommend considering the following factors:
- The provider’s experience and reputation
- Multiple currency support
- Customers may pay for phone and mail purchases using a browser by swiping cards or entering payment information
- Quickly establish payment links, such as QR codes, to gain access to all of the advantages of contactless payments
- Allow users to pay for items online, in-store, through self-service, or through mobile
- Processing of chargebacks
- The ability to track and manage all of their payment processing processes with ease
- Create real-time reports on all transactions
- Customer and tech support is available 24/7
UBank Connect offers suite of payment solutions for high-risk merchants. First and foremost, it provides secure credit card payments, which is critical for any high-risk business. Our secure and efficient payment platform enables you to connect different PSPs while accepting as many payment methods and currencies as you require. Furthermore, we are fully PCI DSS compliant, ensuring maximum security of sensitive data.
When operating a high-risk business, it is vital to have a payments partner you can rely on. UBank Connect is a one-stop shop for payment and banking services for high-risk merchants. Get in touch with us to learn more about what we have to offer!
