4 Steps To Set Up A High Risk Merchant Account

Nobody likes to be considered as “high risk.” This is especially true if you have a hard enough time locating a processor willing to take the risk. However, it is still possible, and when you use the following four tips, you’ll have your merchant account ready in no time flat.

1) Locate a Provider who specifically caters for High-Risk Accounts

Chances are, when you contact a service provider of merchant accounts, they will have nothing to do with high risk, let alone provide the same rate as other account holders even if they did offer an account.

If you are lucky to obtain a merchant account that wouldn’t normally do so, then you will likely pay high monthly charges and require you to accept a contract that can be seen as punishing.

When you locate a provider who caters explicitly to your high-risk account needs, you will have greater possibilities with lower payments. Because of their understanding of the complexities of high-risk accounts, they make it possible to create a customized charge for your needs.

2) Remain Informed About the Price

Be aware that when you shop around for your processing provider, they could conduct instant bank verification. Sadly, having a status that is seen as high risk will always have its drawbacks, regardless of you using any specific provider, and you will still experience the higher end of the stick by comparison.

In general, the price you will be paying will be at least 2 percent for each sale, as well as variable fees based on what service type is required. Knowing that you will be unable to obtain a low rate will allow you to look out for the services that are considered excellent for high risk.

3) Determine Account Requirements

The account requirements are no different from other business types. Nevertheless, it is good to keep in mind the tools you will need due to your increased rate, keeping costs to a minimum.

Determining the tools you require is not as easy as you would think. Although the prices may be seen as intimidating, the higher amount of gains will be worth every penny.

Contemplate if you will require any of these methods:

• Accepting Credit Cards – Today, accepting credit card payments is a must for all businesses. Almost nobody today carries cash unless it is an absolute must. Paying with a credit card is the preferred method, and to take it one step further, ensure that your system can allow for contactless transactions.
• Opting for Mobile Processing – Having a nonstop business can require mobile capabilities that allow for payments at all times of the day. This is where mobile processing comes into play.
• Point of Sale – By combining all of your income, tools, ordering, and management systems, you obtain a system capable of processing payments only.

4) Buy Your Tools

Equipment will always be a significant expenditure when it comes to starting a business. That is why you should buy all of your tools upfront instead of leasing or renting them. Over time, you will be saving money when you own the payment processors.

Often, lease and rental contracts require a minimum amount of time, including high fees for early cancellation. Not only that, but the payment requirement does not go away if you cease using your tools until your contract expires.

When you rent your payment tools, they could charge you as much as $150 each month for something that only costs $350 to own outright. Owning the tools will be a lot cheaper than giving away free money in a rental contract.

Another alternative is to obtain your payment terminal at no charge. All you have to remember is that a yearly fee to renew the terminal will be required. This amount will usually be at least $75, depending on the provider.

Nobody said a high-risk merchant account would be easy to set up. With many hurdles to get over, a business could experience a bumpy road for years. These are a few ways to lessen the burden so that you can focus on what matters the most: growing your business and taking a good hold of all of the financial opportunities out there that will increase your revenue and give you many more choices for the years to come.