If you’re having trouble getting approved, take a look at our top picks for high-risk merchant accounts.The first thing to understand about high-risk businesses is that your processor will determine whether you fall into one of their high-risk categories when you apply for a merchant account.In this article, we’ll discuss the factors that lead to a business being labeled high-risk and how this determination will affect your ability to get a merchant account.
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Unfortunately, high-risk merchants don’t have much (if any) bargaining power, so you can expect to be stuck with a contract running anywhere from three to five years, again with an automatic renewal clause that extends it beyond that initial time frame.
Your contract will also usually include an early termination fee that applies if you close your account before the end of your contract term.
Although very small businesses can get by with a payment service provider (PSP) such as Pay Pal or Square, once your business reaches a certain size, you’re going to want to upgrade to a full-service merchant account.
While it would be nice if credit card processors treated all businesses equally, the fact is that they don’t.