Which Businesses & Industries Are Considered High-Risk? (& What It Means If You’re On The List)
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Running a high-risk business comes with its own set of challenges and complications. However, the “high-risk” designation need not be a death sentence for your business. In this article, we’re going to explain why.
While the continued existence of countless high-risk businesses demonstrates the fact that it is entirely possible to run a successful one, it’s true that a high-risk business classification complicates your ability to access certain business essentials, including business loans, credit card processing, and business insurance.
The example of payment processing illustrates these challenges. If you’re an eCommerce entrepreneur, credit/debit cards are just about your only option for getting paid. Although very small businesses can get by with a payment service provider (PSP) such as PayPal or Square, once your business reaches a certain size, you’re going to want to upgrade to a full-service merchant account. Payment processors do not treat all businesses equally. Larger, high-volume businesses demonstrating financial strength receive lower processing rates and often get more generous contract terms. Businesses are also treated differently based on the degree of financial risk they present to their processor. All processors will carefully judge your business to determine whether you fall into the “high-risk” business classification.
High-Risk Merchants & Credit Card Processors [Video]
If your business classification is designated as high-risk, the consequences can be severe. Many processors will simply refuse to approve you for a merchant account, while others will charge you significantly higher rates and fees than you would otherwise pay. Unfortunately, there are also plenty of merchant services providers that deliberately market to high-risk businesses that are struggling to get approved for a merchant account, only to rip them off with outrageously high fees and rates, as well as draconian contract terms.
In this article, we’ll discuss the risk management factors that lead to a business being labeled high-risk and how this determination affects your ability to operate. We’ll also provide some recommendations for high-quality providers that specialize in servicing the high-risk sector. Finally, we’ll give you some tips for avoiding the not-so-high-quality providers that prey on high-risk merchants.
Looking for the best high-risk credit card payment processing companies? If you’re having trouble getting approved, take a look at our top picks for high-risk merchant accounts.
Table of Contents
- What’s The Big Deal About A High-Risk Business?
- How To Determine Whether Your Business Is High-Risk
- Choosing Merchant Services Providers For High-Risk Businesses
- 3 Tips To Avoid Predatory High-Risk Credit Card Processing Providers
- Navigating Other Aspects of Business When You’re In A High-Risk Industry
- High-Risk Merchant FAQ
- I’m On The High-Risk Merchant List, Now What?
What’s The Big Deal About A High-Risk Business?
Businesses get designated as high-risk by entities ranging from banks to credit card processors to insurance companies due to the heightened risks associated with servicing them. This is due to a combination of risk management factors, including whether a business type is heavily regulated by the government (or disparately regulated by the various states), whether a business type runs a higher risk of defaulting on a loan or incurring chargebacks, or whether a business operates in a market oversaturated with businesses of the same type. What a high-risk designation means for a business depends not only on the type of institution in question, but on the policies of particular companies.
For example, a payment processor determines whether you fall into one of their high-risk categories when you apply for a merchant account. Either you’re high-risk, or you’re not – there is no middle ground. Beyond that, it gets complicated as every processor has its own unique guidelines for determining whether you’re in its high-risk merchant category. While some business types, such as pornography or drug paraphernalia, will always be placed in the high-risk group, others may or may not be, depending on your processor. If you’re considering a particular provider, check their website or contact them directly to see if they find your business to be high-risk.
While the exact criteria for determining high-risk status vary from one provider to the next, the following factors are usually used to determine whether a business qualifies as high-risk:
- High chargeback or fraud rate: If your line of business has historically shown a high chargeback rate or outright fraud, you’ll probably be deemed high-risk, too. This determination is usually based on the behavior pattern of your customers, not you personally.
- Offshore businesses operating in the United States: If your business is headquartered overseas, but you primarily sell to US customers, you might be flagged as high-risk. While the potential for fraud is a strong factor here, lax banking regulations in your home country can also be a determining factor.
- Products or services of questionable legality: This factor is the one most people associate with high-risk businesses. Distributing pornography or selling drug paraphernalia are the most obvious examples, but there are many others as well.
- Questionable sales and marketing practices: Is your business the type that’s often thought of as a scam? If so, the principle of guilt by association is alive and well, and most providers will label you as a high-risk business.
- Bad personal credit score: While most criteria for determining high-risk status focus on your business, this one focuses on you, the business owner. If you have a low personal credit score, you’re more likely to be placed in the high-risk category by some processors.
- High average ticket sales: If your business routinely accepts unusually high-cost purchases via credit card, you could be considered high-risk. This factor primarily affects businesses such as furniture stores and companies who process a lot of B2B transactions.
How To Determine Whether Your Business Is High-Risk
Please review our high-risk industries list below. While this list doesn’t cover every single possible high-risk business, it does include the categories that are most often regarded as high-risk. Remember that every provider has their own criteria, so while you might be on one provider’s high-risk business list, you might be approved for a regular, non-high-risk account by a different provider.
Here are the most common types of high-risk businesses:
Choosing Merchant Services Providers For High-Risk Businesses
If yours is a business likely to be designated as high-risk by merchant services providers, know that you’ll still have plenty of choices when it comes to providers willing to work with businesses of your type. Some of these providers are high-risk specialists, while others are processors that do business with both high-risk and “regular-risk” outfits. It’s not possible to definitively state which of these processor types are preferable to work with — it really depends on the individual processor and the kind of arrangement they are willing to work out with you.
For examples of payment processors that we’ve found to be honest and reasonable partners to high-risk businesses, have a look at our post detailing the 6 best high-risk payment processors and contact one or more of the providers listed to see if they jibe with your business plan. In terms of individual companies, Durango Merchant Services (see our review) and SMB Global (see our review) are both honest examples of how the high-risk payment processing industry works.
Understanding Payment Processor Fees & Rates For High-Risk Industries
If you’ve been reading this so far and you’ve determined that your business is in the high-risk category, it’s time to face this harsh reality: Merchant accounts for high-risk businesses inevitably cost more than those for non-high-risk ones. In fact, they usually cost a lot more. You’ll pay more in both account fees and processing charges, and you’ll probably be stuck in longer contracts as well.
Higher processing costs are an unfortunate reality for high-risk merchants. While the actual rates will vary widely between processors, you can generally expect to pay close to twice as much as what a comparable non-high-risk business with the same sales volume would pay.
Another expense high-risk accounts have to deal with is a rolling reserve. Your contract will also usually include an early termination fee that applies if you close your account before the end of your contract term. You might even have a liquidated damages clause in your contract that raises the price of breaking it even further.
Do review your proposed contract thoroughly before signing up with any processor.
Understanding The Dangers of Chargebacks For High-Risk Companies
Part of what goes into determining a business’s risk status is the estimated likelihood (based on the nature of the business) that said business will incur a high chargeback rate. Conversely, excessive chargebacks can also be determinative in getting classified as a high-risk company in the first place.
One thing to keep in mind is that the standard chargeback threshold is 1% — that is, if 1% or more of your transactions ultimately get charged back, you’re likely to get penalized by your payment network. Given the harm of high chargeback ratios, you’ll want to do everything you can to get your chargeback rate under 1%.
Data from midigator.com indicates that both Visa and Mastercard have seen fraud-related chargebacks have comprised an ever greater proportion of total chargebacks each year from 2017 to 2019. Additionally, a white paper published by the Federal Reserve Bank of Kansas City in January 2016 found that merchants were only able to successfully dispute 20%-30% of fraud-related chargeback claims. That’s why a payment gateway with strong fraud detection tools can help your business avoid being designated as high risk or, failing that, help minimize the damage that fraud-related chargebacks ultimately do to your business.
Some businesses may benefit from asking their processor for a review of their processing history every so often. If you can show a good track record re: chargeback prevention, you may be able to shake off your high-risk business designation.
For more on minimizing chargebacks, read the following articles.
- Friendly Fraud Survival Guide: How Small Businesses Can Reduce Their Chargebacks & Save Money
- The Small Business Owner’s Guide To Preventing Chargebacks
3 Tips To Avoid Predatory High-Risk Credit Card Processing Providers
As we’ve noted, there are plenty of merchant services providers who claim to serve the high-risk community, but actually charge highly inflated rates and fees to unsuspecting business owners who are desperate to get approved for a merchant account. If you’re a high-risk merchant, know in advance that the deck is stacked against you. While some providers will treat you fairly and charge you reasonable fees, countless providers seek to take advantage of your plight.
It’s not always easy to distinguish the reputable high-risk providers from the predatory ones, but we can offer a few tips to help you avoid the latter.
Check The Company’s Website
If the processor’s website layout looks very basic or dated, that’s a bad sign. Many predatory providers are small companies that don’t have the budget for a snazzy website, and a lot of them simply haven’t updated their site in years. A website with a 90s look should be your first clue that something’s amiss with the company. On the other hand, a modern website with clear, actionable information often indicates a business model focused on the needs of high-risk businesses.
Check The Company’s Online Reputation
Research what others are saying about the company on the internet. Review sites such as ours should be your first stop. If the reviews are bad, stay away. If you can’t find any reviews, that’s an even stronger indication that the company should be avoided. Also, don’t forget to check out consumer protection sites such as the Better Business Bureau (BBB) and Ripoff Report for feedback from merchants who’ve done business with the company. Consider how the company responds to any disgruntled users. A lack of meaningful responses to such complaints is a definite red flag!
Look For The Company’s Terms & Conditions or Merchant Application
Relatively few providers offer sample contracts online, but if you can obtain a copy of the company’s standard Terms & Conditions or Merchant Application, review it thoroughly. It’s usually in the fine print of these documents that you’ll uncover the many ways the company can rip you off. The less information of this sort you can find, the more reason to be concerned about the company’s potential practices.
A high-risk business classification not only impacts your payment processing choices, but also the types of business financing and insurance you’ll be able to access.
Business loan vendors tend to consider businesses exhibiting the following characteristics to be high-risk:
- Startups & new businesses
- Businesses with low revenue
- Businesses with bad personal credit
- Businesses in unstable industries
Banks typically won’t offer a business loan to businesses like these, so you may want to look to online lenders that offer business financing options often used by high-risk businesses, such as short-term loans, invoice financing, asset-backed loans, and even personal loans for business use. Additionally, you can always apply for a business credit card.
Your high-risk business classification can complicate your search for business insurance as well. Luckily, there are agencies specializing in providing business insurance to businesses (and business owners) considered high-risk. You may want to seek out such an agency if you find other providers to be reluctant to deal with you or offer you a fair deal. You may also want to read our article on general liability insurance to better understand how it works.
High-Risk Merchant FAQ
I’m On The High-Risk Merchant List, Now What?
Finding business services that suit your particular business is never easy, but it’s far more difficult for high-risk merchants. While you’ll have to pay higher fees and processing rates, you shouldn’t have to settle for sub-par customer service and support. Thankfully, there are providers on the market that offer high-quality service and fair pricing to the high-risk community, although your choices are more limited than they are for non-high-risk merchants.
Likewise, for certain merchants, being diligent about preventing fraud and excessive chargebacks can actually prevent you from being designated high-risk in the first place, or, failing that, remove the high-risk designation from your business after a certain length of time.
Here are some more helpful high risk business resources!
- Do High-Risk Merchant Accounts With Instant Approval Exist?
- High Risk Business Loans
- What Is A Chargeback?
- Where To Get A CBD Merchant Account
- CBD Business Loans
- Complete eCheck Payment Guide (includes high risk ACH processing information)
Frank Kehl
Frank Kehl has been writing about merchant services, payment gateways, and international money transfer services since 2015. He has a Bachelor of Science degree from Penn State and a Juris Doctorate from the Ventura College of Law. After a long and enjoyable career of traveling around the world as an Air Force navigator, he’s comfortably settled down in the wine country town of Paso Robles in California’s scenic Central Coast region. He enjoys reading, photography, hiking, and numerous other outdoor pursuits.
Latest posts by Frank Kehl (see all)
- The Complete Guide To Switching From Worldpay To A Better Credit Card Processing Company - June 10, 2020
- Should You Implement A COVID Surcharge? 4 Ways To Manage Your Profitability During The Pandemic - June 2, 2020
- How To Read, Understand, & Successfully Negotiate A Merchant Agreement For Your Small Business - March 3, 2020
- How To Detect (And Prevent) Online Credit Card Fraud — And Why You Need A Solid Strategy To Manage Fraud For Your eCommerce Business To Succeed - November 18, 2019
- Don’t Fall Into The Trap Of Leasing Credit Card Machines & Terminals: 4 Smart Alternatives For Getting Payment Processing Hardware - October 21, 2019
Hi,
We are running an IT solution marketing company based in the U.S. We provide SEO, web development, ad campaigns. Also, we do marketing for an IOS and Android applications. We do call the customer for the B2B services it wouldn’t be wrong if you call us a call center or a small BPO.
Just wanted to ask, would you be kind enough to help us in this matter to tell that which merchant we should apply for.
We will keep an eye out to your response.
This comment refers to an earlier version of this post and may be outdated.
Hi Aleem,
In looking at this high-risk comparison chart, I’d say Host Merchant Services looks like a good choice for you. You could also try entering in your specifications into our filtering tool to get a more closely matched recommendation. Best wishes!
This comment refers to an earlier version of this post and may be outdated.
Dear Community,
Hi I am a tech support company based in UK which merchants will work better for me.
Best Regards
This comment refers to an earlier version of this post and may be outdated.
Hi Ali,
We would recommend getting several quotes from high-risk providers, and this post provides an excellent list to start with. You can also check out our comparison chart. Best of luck!
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Could you please recommend some adequate payment processors for me? my business is related to blockchain based items such as NFT(non fungible tokens). Many thanks!
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Hi Dopsia,
This article lists several payment processors that may be able to accommodate your business needs. Hope that helps!
This comment refers to an earlier version of this post and may be outdated.
Hi,
I’m almost done with setting up my coffee truck. I will be mobile mostly and most of my transactions will be below $10.00. What POS system do you recommend for me to use? I appreciate your input and all available information you are providing which helps people like me who are new to the POS world.
Alibaba
This comment refers to an earlier version of this post and may be outdated.
Hi Alibaba!
We actually have a post exactly about that! Check out How To Choose A POS System For Your Food Truck. Best of luck with your coffee truck!
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I need an account for my high-risk business.
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Hey Greg! This would be a great place to start. You can also compare high-risk processors here. Good luck!
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Hi! I’ve been in the Online Pharmacy Industry for 8 years and counting. We have some big plans for this coming year 2020 and I’m in the market looking for a reliable merchant preferably “US based” since our main market are US citizens. Care to help?
This comment refers to an earlier version of this post and may be outdated.
Hi Criselle,
Thanks for reading and for your question. Here is a list of some of the best high-risk processors that would be a great starting point to check out. Each has a full review so that you can investigate further and contact them. Best of luck!
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I want to start a Credit card processing company. Am looking for underwriters for my business. Can you help me figure out their details and what’s the best way to reach them.
This comment refers to an earlier version of this post and may be outdated.
Hi Nick, Finding information about underwriters and setting up credit card processing companies may be a bit outside of our expertise. We’d rather not give you an answer that we’re not certain about, but we wish you all the best!
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Is there anything illegal about creating a fake business to work with a processor like Stripe? Many people I have spoken with do this in the “head shop” industry but I’m wondering if there would be any legal ramifications. From what I understand is that two businesses are created and legally registered, both companies have similar names, both companies have websites that point to a host like Shopify.com, then you report “no business” for taxes on one and pay the taxes on the other. The only part of deception would be in telling the credit processor what you actually do and sending them to a site that isn’t the one you’re taking payments from. Honestly, I really like this option but I wouldn’t want to get into legal trouble.
Any thoughts?
This comment refers to an earlier version of this post and may be outdated.
Hi S.,
Unfortunately we aren’t qualified to give legal advice, but this is a practice that we would strongly discourage. Aside from possible legal ramifications, misrepresenting the nature of your business to your processor will definitely get you shut down when they find out. It’s also an easy way to end up on the TMF/MATCH list.
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Can i get merchant account for video site ?
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Hi Noor,
As long as there is no betting going on, you should be okay with any of our top-rated providers. If you run into trouble getting approved, I’d suggest Durango or PaymentCloud.
This comment refers to an earlier version of this post and may be outdated.
Do you know of ANY high-risk payOUT companies? There are plenty of options for credit card processing, but as soon as you need to perform the far less risky task of paying affiliates that make erotic drawings the field becomes a complete wasteland. No one can handle bank to bank payouts, we have to do it ourselves. Which is not impossible… but doing so internationally isn’t easy. Companies that only transfer money between their own company-specific wallets are useless to us, we’re a crowdfunder and none of our clients are going to sign up for an account with a different company just to get paid.
To clarify, we already have a processor for taking IN payments. That’s the easy part!
This comment refers to an earlier version of this post and may be outdated.
Hi K,
To be honest, this isn’t something we’ve ever encountered before internationally, so it may be a bit outside of our expertise. We’d rather not give you an answer that we’re not too certain about. If you happen to figure this out on your own, please let us know what solution you find so we can learn how to answer something like this in the future. We wish you all the best!
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I started Amazon, looking for some pro tips about Amazon FBA. Thanks, Chloe!
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WOW Frank, tons of info. Thanks for putting this all in one place. I have a single and hopefully easy question for you (or others). I make and sell steel yard furniture and yard art. My lowest ticket item is currently $25, a black cat silhouette, and my highest ticket item is a covered glider/porch swing for $2000, and I have items in between. I mostly sell at fairs and events, but I do have an online presence. I am looking to go with a mobile register, but I am worried about being terminated by Square or others after reading your article. Does my business fall into a high risk category?
This comment refers to an earlier version of this post and may be outdated.
Hi Rick,
Your work sounds lovely! What you’ve described doesn’t appear to fall into a high risk category. I think Square should be fine, but I do suggest you read How to Avoid Merchant Account Holds, Freezes, and Terminations and pay special attention to our suggestions regarding chargeback prevention.
This comment refers to an earlier version of this post and may be outdated.
Hi, I am selling any type of supplement especially the injectable supplements. I use Square and Stripe before but they shut me down because they said some products are not allowed to sell. What merchant company would you recommend for my business? Thanks!
This comment refers to an earlier version of this post and may be outdated.
Hi Cheche,
We have an excellent post on High-Risk Merchant Account Providers. I’d suggest reaching out to the processors mentioned in this post, explain what you sell and see if you can find a good fit. Good luck!
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Hi, I recently started a window cleaning business. I have been researching the mobile POS systems. So many to choose from. What advice can you give as to what would meet my needs?
Thanks
This comment refers to an earlier version of this post and may be outdated.
Hi Mike,
We’d need more info to make a solid recommendation, but I definitely recommend this article, 5 Best Mobile POS Systems. I think it will help steer you in the right direction. Good luck with your new business!
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I badly need some help. I’m fairly new to online payments. I have a niche website, that sales hand crafted collectibles, that was once known to activity that is now days not allowed, in some areas, but the hand crafted items are highly collectible. They are small 1 inch to 3 inch items. Very similar to small pocket knives. I started with stripe and 5 months later they shut me down. I set up square and 2 payments in they shut me down. Both said i was high risk cause they said I was selling weapons. The items i sale are for collecting and display same as old knives, coins or anything else. What would you recommend me to use that will allow me to accept payments and not have to worry about being shut down ?
This comment refers to an earlier version of this post and may be outdated.
Hi Albert,
Yes, as referenced in this article, collectibles and weapons are both high risk. That said, you’ll need a high risk merchant account, and high risk comes at a higher price, unfortunately. I’d suggest giving Durango a call; they have a solid reputation and we rate them 5/5 stars! Alternatively, if you don’t want to pay the extra cost, I’d suggest simply not accepting credit cards and using ACH payments instead.
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Thank you so much for replying. It really sucks having to go through one processor after another. I will give durango a call. I don’t mind to pay extra. That’s just the cost of doing business. Can you please explain what and how sch payments work ? I don’t think I have ever heard of them. I tried google searching but still confused.
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No problem Albert! We actually have a blog post that explains What You Need to Know About Accepting ACH Payments. I hope that helps!
This comment refers to an earlier version of this post and may be outdated.
Well I called durango and they said NO! Any other service you can point me to ?
This comment refers to an earlier version of this post and may be outdated.
Albert, check out our article on The Best High-Risk Merchant Account Providers. You can also give our filtering tool a try for specific recommendations. Best of luck!!
This comment refers to an earlier version of this post and may be outdated.
1. I need a recommendation for a merchant who works with high risk companies. Even though I have excellent credit, 0 debt, and I have good savings, I got turned down by stripe because they say my type of business, healing/coaching is high risk. I have used PayPal for 9 years and no one has asked for a refund. I want to find a Merchant that can interface with my e-commerce Shopify, through a payment gateway they accept like Authorize.net. (Here is a list from Shopify of who they accept, and they may be open to working with others not on the list: https://help.shopify.com/manual/payments/third-party-providers/list-of-direct-and-external-providers)
2. I also plan on selling prints of my artwork – do you think I should put such products on my website before I apply to somewhere else, so I just don’t have services that they have a problem with?
This comment refers to an earlier version of this post and may be outdated.
Hi Zanne,
Durango is going to be your best option for high risk business. You can add your art to the site, Durango wont mind, but you should know that high risk merchant accounts are more costly than traditional ones, so it may be more cost effective for you to go with Paypal. I’d recommend you do a cost analysis first and read through these articles on negotiating rates and determining how much you should be paying for processing. I hope this helps!
This comment refers to an earlier version of this post and may be outdated.
1) I want to know people’s experience with Payment Cloud. Their interchange plus rate is much better than Durango, 1st data and others. Do you know if Payment Cloud has charged higher fees than what the contract originally said? Payment Cloud’s Agreement has in at least seven different places in their sections describing the schedule of their fees the following phrase, “as amended from time to time”. Is this typical?
2) Payment Cloud Agreement states “the schedule of fees is predicated on my business’ average monthly sales volume…”. My sales volume could vary by 5 to 10 K per month so it sounds like they could change my fees. Anyone know if they would? They insist on a renewable 24 months contract with early termination fee of $595.
3) I am wondering if I should just do PayPal Pay Flow Pro. My credit is excellent but my online business of coaching is considered High Risk and my current volume is under 2K/month but will increase in 5 months to maybe 5-10K/month.
This comment refers to an earlier version of this post and may be outdated.
Hi Zanne,
1) Feel free to check out our review of PaymentCloud if you want our opinion of them. All providers include a provision in their contracts allowing them to change their fees from time to time. In most cases, you’ll receive notice before any changes go into effect.
2) Yes, they can and probably will change your fees if they’re using your monthly sales volume to determine them.
3) You’re probably better off with Payflow Pro until your business starts generating a higher monthly sales volume. There’s no need to get stuck in a long-term contract with a high ETF if the business is just getting started.
I hope that helps!
This comment refers to an earlier version of this post and may be outdated.
Hi there! We are selling replica sneakers online and it’s very hard to get a payment processor for this with not much documents required. What would be the best solution and payment processor? Any suggestions?
This comment refers to an earlier version of this post and may be outdated.
Jack, It is going to be difficult to find a processor that will accept replica sales, but your best bet is going to be Instabill. I hope this helps.
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hi i am a tech support company based in US which merchants will work batter for me
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Yasir,
Instabill is likely your best bet.
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What is your advice on youcaring web site that deals with wepay and paypal site in order to receive people’s monetary donations, which is better to go with wepay or PayPal or is there a better one you recommend? Its for a kidney transplant and a heart transplant needed for one person to help them get this done. Its needed real soon.
This comment refers to an earlier version of this post and may be outdated.
Hi Lia,
We like both WePay and Paypal, but if we had to choose, we’d go with WePay. Best of luck!
This comment refers to an earlier version of this post and may be outdated.
I opened up http://www.instabill.com
Q. Why are they not using a SSL site? I mean they don’t have HTTPS
This comment refers to an earlier version of this post and may be outdated.
Jimmy, it seems they haven’t converted to HTTPS quite yet, but I don’t see a problem with that. They don’t collect any sensitive data through their website, so I wouldn’t be concerned.
This comment refers to an earlier version of this post and may be outdated.
Hi, we sell Herbal sex products + nutraceuticals.
Which merchant is best for us?
This comment refers to an earlier version of this post and may be outdated.
Hi Jimmy,
I’d suggest getting in touch with Durango or Instabill. They both provide high risk merchant accounts, and will hopefully be able to help you out.
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I was recently put on the TMF list even after I paid all charge backs in full. I was dropped from current processor even after that. Are there any processors out there who that would consider me?
The processor who put me on the list said they would give me a letter to submit showing account was paiid
This comment refers to an earlier version of this post and may be outdated.
Hi Terri,
We actually have a post about the TMF list that I think you would find helpful. You’ll see that Durango is likely your best bet. Read through the post and get in touch with Durango to see if they can help you out. Best of luck!
This comment refers to an earlier version of this post and may be outdated.
My Husband and I own a Pawn Shop, we started 18 years ago and we were with Moneris for the 18 years and we had a charge back, that was a big mess and they dropped us. We can not find anyone else to take us on, they say Pawn Shops are a high risk. We are selling second hand items….any ideas would be great.
thank you
Christine and Ron
This comment refers to an earlier version of this post and may be outdated.
Hi Christine and Ron,
Have you looked into Durango Merchant Services or Payline Data? They are typically willing to work with High Risk merchants, so I suggest contacting them to see if they can help.
This comment refers to an earlier version of this post and may be outdated.
I was put on the TMF list in 2008 for not paying money to a processor that I didn’t owe in the first place. Am I off of the TMF list now?
This comment refers to an earlier version of this post and may be outdated.
Brian,
You *should* be off the TMF list after 5 years, but there is no way to know for sure until you apply for another merchant account.
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I’m looking for help with my supplement product. I’m unsure on which merchant account I can get the best service and I’d like the quickest application process as well! Thanks!
-Here’s my supplement if you need more info. It deals with concussions
This comment refers to an earlier version of this post and may be outdated.
Presli,
Considering that supplements are considered a “high-risk,” I would say that Durango Merchant Services is your best choice here. Their application process is relatively fast, but I wouldn’t say the “quickest.” In this case, I would say that it’s worth it to go with Durango even if the application process takes, say a day or two, longer.
This comment refers to an earlier version of this post and may be outdated.
Also what percentage RANGE should I expect to pay as a “high risk” account?
In other words what is considered a “normal” percentage fee so I know when to say “no”…
Thanks
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Hi Amad
I offer rare Collector/promo items mostly music related DVDs (Music Video collections) No down loads and no CDs just DVDs. Some are sourced from DJ Pools others from various countries some official some are to the best of my knowledge unofficial. Ive been recommended “Payment Clound” (from Stripe) is there any you’d suggest I consider first before I implement a new system that end up rejecting me as another “high risk account”?
Many thanks in advance for your educated recommendation
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Hi Preston,
I’d recommend that you check out some of our preferred high-risk providers. These are providers that we’ve found to have good track records for providing fair quotes and reliable service. Pinning down a specific rate range for you to steer by is very difficult, especially for high-risk accounts. There are so many variables, not to mention added fees that won’t be part of the simple rate quote, that any number I give you is just as likely to misguide you as it is to help you. Going with one of our preferred providers will help to ensure that you get a fair quote. Getting multiple quotes might also help you to see what’s reasonable for your specific processing situation.
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I have a credit repair business and I keep getting denied a merchant account. Can someone please help?
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D.A., We have a list of High Risk Providers, but if you haven’t already tried Durango, I’d definitely recommend you start there.
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I am a hypnotherapist and Square have cancelled my account as apparently Hypnotherapy and Life coaching is deemed as high risk! What companies could I use?
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Thanks for your inquiry Deirdre! I’d definitely recommend Durango for your situation. Good luck to you!
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I’m a fellow hypnotist and have been happy with Canyan the last few years. Didn’t have any problem getting or keeping my account. I called a lot of processors, and they were the best rates I could find.
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i have a industrial hemp cbd supplement website wholesale and retail via Shopify. what would be the best option for a payment gateway?
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If Instabill.com doesn’t work for replica, do you have any other suggestions?
Company is based out of India, so need an offshore account.
Thanks.
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Hi Prabhudas,
Unfortunately Instabill is going to be your best bet. You might be able to see if they can give you some recommendations for alternatives. If you have any further questions please don’t hesitate to let me know.
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Hello ,
My name is Alex.
I am looking to setup a payment gateway and accept in my website payments.
In Canada I want to sell Hookah Flavors without Nicotine and outside Canada like USA I want to sell shisha flavors without Nicotine but also with Nicotine.
Please someone help me to setup this.
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Hi Alex,
Thank you for your inquiry, I am happy to help you with this. Based on the information provided, I would recommend Durango Merchant Services and Payline Data. I would encourage you to use the green “visit site” button within our reviews if you would like to support our work. I hope this helps and if you have further questions please let me know.
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Hi. I have a credit restoration business and I really need a merchant account. I only take payment (cash) after services and I’ve had no one every ask for a refund. If there are no improvements then there is no cost. I want to set up recurring payments. I’ve been told this is high risk due to chargeback s but my clients pay only if they are happy with my service. What merchant do you recommend?
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Hi Claire,
Based on the information provided, I would recommend Durango Merchant Services, Payline Data, and Instabill. Different processors have different criteria for what they consider to be high risk. If any of these processors decide you aren’t high risk, they will still be able to set you up with a regular merchant account. I would encourage you to use the green “visit site” button within our reviews if you would like to support our work. I hope this helps and if you have further questions please let me know.
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Hello,
I am selling Satellite TV Software . After a simple Installation user can watch Satellite TV channels online . Which Payment gateway should i apply for this ?
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Hi Noor,
Instabill is going to be your best option.
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Hi, I am looking for a merchant account payment gateway for my new e-liquid business.
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Hi Amir,
Thank you for your inquiry, I am happy to help you with this. Based on the information provided, Instabill is going to be your best option.
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I have a BigCommerce store selling Apparel. My online store is Canadian based but also sells to US customers. I am looking for a high risk gateway merchant that uses NMI or Authorize. Net so I can integrate it. Any recommendations?
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Hi Liz,
Thank you for your inquiry, I am happy to help you with this. Based on the information provided, I would recommend Durango Merchant Services and Instabill. I would encourage you to use the green “visit site” button within our reviews if you would like to support our work. I hope this helps and if you have further questions please let me know.
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Hi i am looking for a merchant account payment gateway for my new business Remote technical support.business location in India.
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Hi Akash,
I would recommend Instabill.
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Hi, am catching this article 6 years late but wish i can still get an answer for my question, am looking for processor for my pharma non controlled business, very low chargeback or none but i need to process my call center orders for both Visa and mastercard and not get scammed, any idea who to go to or what to do?
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Hi Ali,
Based on the information provided, I would take a look at Durango Merchant Services, Payline Data, and Instabill. I would encourage you to use the green “visit site” button within the reviews if you would like to support our work. I hope this helps and if you have further questions please let me know.
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Hi,
I am about to launch a skill base competition website base out of Canada, where my user compete against each other with competitive video games they own. I have been turn turn by all a lot of payment processors.
Can anyone help refer me to a payment processor that will take on skill gaming business model here in Canada.
Thanks,
John
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Hi John,
Thank you for your inquiry, I am happy to help you with this. Based on the information provided, I would recommend Payline Data, Durango Merchant Services, and Instabill. I would encourage you to use the green “visit site” button within our reviews if you would like to support our work. I hope this helps and if you have further questions please let me know.
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Who would you recommend for a new dating site?
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Hi Drake,
I would recommend Durango Merchant Services, Payline Data, and Instabill. I would encourage you to use the green “visit site” button within the reviews if you would like to support our work. I hope this helps and if you have further questions please let me know.
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How about Nationalache merchant for high risk as well as Liberty. Please let me know. Specially I am looking for echeck for my remote tech support business. My business is new ; and we don’t have any bad history and my credit is excellent. Thank you
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Thank you so much for the inquiry Bony. Unfortunately we have not reviewed either of those companies. Instabill is your best choice, as they are well-versed in dealing with Tech Support businesses. Best of luck to you!
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Hello,
Once a charge back has been filed by a customer, what is the best way to handle it? It seems to me if you have grounds then fight every one. Would that be what you recommend? Any other tips of beating charge backs?
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Hi Todd,
Great question, please check out this article for more information.
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Hi marc,
Can you recommend any merchant providers for my new offshore steroid site?
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Hi San,
It is going to be difficult to find a processor, but your best bet is Instabill.
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Can you suggest any reputable companies that handle gaming?
we are also a payments provider and are seeking new clients – can you suggest any reputable forums to register our site on? unless of course that is competition to your site.
thanks
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Hi Marc,
I would recommend Durango Merchant Services, Payline Data, and Instabill. Unfortunately I don’t have any forums you can register on, but if you have any further questions please let me know.
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My organization sells web services and proprietary custom software (ex. CRM, POS)
Im looking for a secondary merchant account ( I currently process with a high risk merchant)
My credit is poor
My chargeback percentage is between %1-2
But i am unable to get approved
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Hi Sat,
I would try Durango Merchant Services, Payline Data, and Instabill. I hope this helps and if you have further questions please let me know.
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Hi Amad !
Reaching out to you for some expertise and transparency.
We sell dietary supplements catering to bodybuilders (not steroids, all legal lol).
In any event, after 6 years we got shut down. Our charge back rate was less than 1%. We never had any issues. The processor was ipayment, but when we opened the account years ago it was leader’s merchant services. Somehow they transitioned. The only reason they gave (verbally) was that they did a random audit, they consider the products to be high risk, and it’s up to their discretion etc. My question is 1) Does it make sense that even with a great history, this would happen ? 2) We can still use authorize.net correct ? We just need to find another processor ? 3) If I wanted an aggressive processor and gateway combination, who do you recommend ? Who are the companies that cater to weight loss pills and male enhancement pills. For us fees are NOT a concern due to sales margins. Also they are a tax deduction obviously. Thanks In Advance !
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Hi Rich,
These are great questions. Yes, supplements are considered high-risk, so it isn’t surprising that iPayment closed your account since they aren’t a high-risk processor. Yes, you can still use the Authorize.net gateway. I would recommend Durango Merchant Services and Instabill. I hope this helps and if you have further questions please let me know.
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Great content! Thank you for educating us. I really appreciate it!
I am going to be selling pipes and bongs in a 420 themed store. According to the comments it seems I should use instabill. I was wondering if this will put my current business credit card and bank account at risk also, however – I use it for other businesses that I run.
Thank you!
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Hi Kenny,
The other accounts won’t be at risk of being terminated as they won’t be connected in that way. You might want to maintain separate credit and bank accounts just because it makes accounting easier and more reliable. Since the bank account will be linked to the merchant account, any funding holds or penalties or fees will be taken from that account. So in that way it is open to more risk. By signing up for the merchant account, the business authorizes the merchant account provider to access the bank account. The credit card account is unrelated. I hope this helps and if you have further questions please let me know.
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My business is selling a biometric trigger lock for gun safety. Not sure if this is considered high risk?
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Hi Jennifer,
Yes, this will be considered high risk. I would recommend Durango Merchant Services, Payline Data, and Instabill. I hope this helps and if you have further questions please let me know.
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I have called Durango – NO they do not support online tobacco glass, i have confirmed. Payline i don’t know.. they recently worked with evo, but that has changed. I was with evo and they just dropped me mid day. sad! i don’t have anything as of right now except for Green.Money, but that is a direct bank transfer payment. which most people don’t use as much. but if you are interested in getting referred, let me know. i can put you in contact with the person that helped us through the process. my sites are http://www.eledank.com and http://www.glassmahal.com, i am still looking for cc merchant account..please help!
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Hi Dev,
I would try Instabill, they are going to be your best bet.
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Hi and thank you for valuable information. This explanation helped to understand how high risk merchants work.
We are a brand of hair care products and are looking to create a trial offer where the customer would receive first shipment free (excluding shipping costs), followed by an automatic charge 30 days later for a certain amount. Many merchants would look at this business model as high risk, which merchant would you suggest we approach and what does the approval process look like in general?
Thank you for your response and for excellent content
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Hi Val,
Thank you for your inquiry, I am happy to help you with this. I would recommend Durango Merchant Services, Payline Data, and Instabill. The approval process is going to vary between each processor so your best bet would be to contact them directly. I hope this helps and if you have further questions please let me know.
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I own a monthly subscription box business that sells smoking supplies like glass pipes and other smoking essentials, Stripe recently dropped me because of this. They recommended Payment cloud but after only minutes on the phone they told me “no bank would support this”. I am bringing in around $8,000+ monthly and minimal charge backs. I’m also using a subscription box builder website so I have to use one of only a handful of gateways. I was just approved for and Authorize.net account, given this information is there a merchant that you believe is best?
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Hi Clarissa,
Your best bet is going to be Instabill. I hope this helps and if you have further questions please let me know.
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Thanks! My business is considered high-risk because I sell bongs, water pipes, and more. I decided to go with Shopify for ecommerce and POS, but cannot use their gateway , so they referred me to Authorize.net and they told me that they can provide a gateway for my business, but not a merchant account (Denied by Evo Payments International). And now I’m potentially looking everyday for the best option available . I have plenty of inventory and am ready to sell. Do you know a better and more reputable recommendation for merchant accounts that may work with a shop like mine?
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Hi Von,
Thank you for your inquiry, I am happy to help you with this. I would recommend Durango Merchant Services and Instabill. I hope this helps and if you have further questions please let me know.
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Thanks so much for tour feedback here. One other question – what can I typically expect to pay as a discount rate to process as a high risk merchant. Expecting it will vary depending on who I contact, but is there a general market range?
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Hi Bryan,
That’s a great question. There isn’t really a general market range because there are many factors that affect the rate, such as type of business, the industry, how long your business has been open for, etc. Your best bet would be to get quotes from the different processors and compare. I hope this helps but if you have further questions please let me know.
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Thanks Chloe, totally makes sense. I’m sure it varies widely. I’m just wondering if there’s some sort of rough range, even if its a wide one, that a high risk merchant can expect? ie – 3.5-8.5% Or maybe a high end? ie – is there a high number you’ve heard of a merchant paying in the past? Trying to guage if its even worth it before I really start sinking time into sales calls and applications/underwriting.
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Some high risk merchants can qualify for basically the same rates as any other merchant. (maybe 2% to 3%). The biggest obstacle for high-risk is usually that there can be substantial reserves where maybe 10% or more of the volume processed each month will be held until six months later, give or take.
The other thing to be aware of is that there may be application fees for high-risk accounts, often over $100. But that’s a one-time fee.
The average range really is very wide, but I’d say it’s usually fair to expect 3% to 6%, if wholesale, markup, and all other monthly fees are included and the business is processing a reasonable volume (say $10K+). But it really, really depends. Businesses with lower volume and businesses with higher risk can end up paying a higher effective rate.
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Hi Chloe, forgot to post bank and thank you for this. Such a big help!
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Do you have a few recommendations for merchant providers to the event registration arena, offering fair rates based on processing volume, and does not lock a growing account into a monthly processing limit?
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Hi Patrick,
I would try Durango Merchant Services and Payline Data. If you have further questions please let me know.
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Hi,
We are starting an online pharmacy to provide low cost prescription drugs. We are not US based. What would your suggestion be for a merchant account and payment gateway. We dont have any processing history as we are just starting.
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Hi Andy,
Instabill is going to be your best bet.
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Thanks for your reply. I have already checked with Instabill and they need a processing history of atleast $50,000 a month.
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Hi, great article. Who are the most recommended processors for selling “merchandise” that have a “high risk of fraud”. Only calling that out since it sounds like “high risk” can mean both the product being sold and also the merchant selling them. Merchant is sound but the people buying the products are more fraudulent than normal.
Love the article.
Bryan
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Hi Bryan,
Thank you for your inquiry, I am happy to help you with this. I would recommend Durango Merchant Services, Payline Data, and Instabill.
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I need a 2d payment gateway account
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Hi Sanjeeb,
We have a great filtering tool that you can try here. I hope this helps and if you have further questions please let us know.
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We sell used auto parts online and unfortunately I have been added to the TMF list, can you please let me know if I can find a Merchant processor?
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Hi Sam,
You can find more information about the TMF list here. If you have further questions please let us know.
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HELP! I have an online store and sell a few CBD products. I am having trouble finding a credit card processing service.
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Hi Betsy,
Thank you for your inquiry, I am happy to help you with this. Instabill is going to be your best bet.
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Hi,
I found this helpful but maybe you can help?
We are a offshore start up company based in Costa Rica.
We are a gambling APP and require a merchant / payment gateway to be able to trade.
We do not have processing history as we have not traded yet, as I mentioned, we are a start up company.
What is more important to us is this:
Do you have a solution for us that can easily be integrated into our APP including the following guideline.
* Will process payments (deposits/withdrawls) without the need of manual processing. As an example, we do not want to spend our time manually paying out our customers, we want a solution where that is facilitated by our merchant.
A merchant with a super API or application development facility preferred.
Thanks.
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Hi Chris,
Your best bet is going to be Instabill.
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Hi, I am looking for gateway but got rejected from all major providers because of chargebacks. I run ecommerce business. Please help to get approval.
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Hi Vinit,
Having a high amount of chargebacks will make you a high risk merchant. Your best bet is going to be Instabill.
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Hi, which payment gateway you would recommend for a non US citizen wanting to start a sex toy drop shipping website ?
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Hi Jess,
Instabill is going to be your best bet.
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Please call me. I have bag credit 500 score .can I get a Merchant account For Rare Coins. Gold. And Silver
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Hi John,
Based on the information provided, I would recommend taking a look at Durango Merchant Services, Payline Data, and Instabill
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I am not new to the online business world but am new to a new product that is considered to be high risk to some merchants. I am in the supplement industry and stuff that deals with nutraceuticals , vitamins and health supplements. Thank you!
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Hi Nate,
I would recommend Durango Merchant Services, Payline Data, and Instabill.
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Great reviews. I agree with everything that I have read on your site so far. Glad to see another person trying to help merchants. I have seen a lot of bad situations.
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Hi i looking for a payment gateway for my membership site which sells tips to increase credit score to Australian people and my company registered in india
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Hi Niran,
Thank you for your inquiry, I am happy to help you with this. I would try Instabill.
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Hey, I had a couple of questions. I run a tech company based here in the U.S. We provide SEO, web development, ad campaigns, and basic tech solutions. I was recently approved by EMS but was given a 10% reserve. I didn’t end up processing anything for the first month because it didn’t fit in my budget with the 10% reserve because of a few extra expenses that came up and ended up getting charged $115 in min monthly fees. I ended up closing the account because I couldn’t afford to pay the extra fees and holding the reserve. I wanted to know a couple things since I closed the account with EMS do you think this will have a negative impact if ever reapplying in a few months or so? Also, i was planning of opening up an office soon could this help us in finding a traditional merchant that might except us? I also had a plenty of other questions. I would love to go over them if you can over email ?
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Hi Kash,
Great questions, no, it shouldn’t have a negative impact if you reapply in a few months. I would also recommend taking a look at Durango Merchant Services, Payline Data, and Instabill. For your further questions, please feel free to email us at service@merchantmaverick.com.
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Has anyone ever heard of CyoGate Merchant Services? I can’t find a BBB approval, or any reviews. Not sure if it is a legitimate company; website looks good, but nothing more to go on.
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Hi Jen,
I don’t have much information on CyoGate so I can’t speak confidently on them. I would recommend taking a look at this article before proceeding with them and I would recommend taking a look at our top processors as well.
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I am opening a small winery. I will sell wine out of the winery’s tasting room and also at farmers markets and wine tasting festivals so I need a platform that can be mobile.
I would expect most purchases to be $12-$75 with some up to $300-400 occasionally.
What would you recommend?
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Hi Audrey,
I would recommend taking a look at ShopKeep.
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Do you know of any merchant accounts that will take student loan consolidation business?
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Hi Stacey,
I would try Durango Merchant Services, Payline Data, and Instabill.
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As a visual artist, I as tend few art fairs every year with no POS system. I rarely sell from my own website but I do sell through third party galleries and other merchant stores. So they are really doing the transaction process and paying me as my work sells. Since few people carry cash with them these days for larger purchases at fairs, what options do I have other than e-transfers and forcing them to go to my website in the spot to complete a paypal transaction?
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Hi Crystal,
Any one of our top rated mobile processors would be good options to take a look at.
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I have a question. I’m trying to figure out if I would fall into the high or medium risk level. As I want to invest in the square but I don’t want problems as I am a sole proprietor. I own a Home Inspection franchise. I seen on the list that high ticket items and real estate are on the list. Home Inspections cost $350 and up per ticket and obviously is part of a real estate transaction. Would you consider this a high risk business? I’m brand new company too. Just trying to find the lowest cost merchant options for me.
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Hi Joseph,
Home Inspections are most likely going to be considered “high risk”. I would recommend taking a look at Payline Data and Durango Merchant Services. I hope this helps and if you have further questions, just let me know.
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Hello,
We are a business that simplifies the process of buying backpage.com credits (they only accept bitcoin). We sell backpage.com credits (we buy the bitcoin and add it to the customer’s account). What merchant would accept us for credit/debit card payments?
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Hi Bill,
Instabill is probably going to be your best bet.
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Would PayPal or Square be better for a small non-profit that wants to offer the ability to donors to gift money on our website and at events?
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Hi Barb,
Either Square or PayPal Here are great options for non-profits and are pretty similar so I’d suggest taking a look at our comparison chart and this article.
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Which merchant would you suggest for high ticket transactions using Clover Station + Clover Mobile for Import/Export/Wholesale/Retail of average ticket items of $3,500 up to $11,000?
We have ran into one very scammy company so far (IPayment Inc), who has first approved us, and after our first transaction, held our $6,500 (still holding after 2 months), now classifying us as a high-risk merchant, although we have laid out EVERYTHING from the beginning.
Can our purchased Clover equipment ($1,.600) even be used by another merchant? Please advice and thank you
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Hello,
The Clover systems will work with any reseller of First Data. I would recommend Dharma Merchant Services.
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Hello,
i need to know which processing company will take tech support business that fix virus, fix computer. we are US based company but customer service is done by India.
is there any company other then power pay and APPS had EMS? we are looking for company based in USA. is there any company that take high risk IT business?
Thanks.
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Hi Pradeep,
I would try Instabill.
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Can you recommend a company that will process for an interest rate reduction campaign by phone?
Thanks,
Brad.
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Hello, I applied to Durango and was rejected right off the bat. I am not sure why as I am a US citizen (born and raised) with an LLC based in the US, have good credit, and am selling products for tobacco use (like pipes) yet not tobacco itself. They list e-cigs as an industry they cater too, so I am not understanding how a pipe is more risky than an e-cig (when the later contains nicotine and is in health regulation limbo). Can you please recommend a merchant services company that can serve my type of business? I am quite disappointed, with the responses from the merchant services companies I have contacted – especially when I am operating a legitimate California LLC that complies with every single state and federal regulation, with a good credit background and an even better market reputation. I need to find a merchant services company that will work with me very soon, so I’d really appreciate any kind of guidance. Thank you.
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Hi Niki,
I would try Payline Data and Instabill.
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Hello
nice article – thanks
Global Companion/ Escort / Courtesan website
– require online payment solution and merch facility with
– the funds to be remitted to an Australian Business account
Is this possible
Many thanks in advance
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Hi Chris,
Your best bet is going to be Instabill.
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I’m opening a book rental company through Volusion, and just found out I’m high risk. They want a $5000 reserve built at 50% of my sales. My business has no history, but my personal credit is excellent. Suggestion???
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Hi Jennifer,
I would suggest Payline Data, Durango Merchant Services, or Instabill.
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Hi Amad,
I am hoping you can help me.
I have a business in the UK online & a physical shop. We are a headshop, and sell cannabis seeds.
We recently lost our online merchant services and after some time managed to secure an account with a danish bank. This is going well, except we are not allowed to take payments from the US.
We have now lost card services in the shop and are having difficulty finding a high risk account with a card machine. We have tried Instabill, but our turnover is just a little bit low for us to be accepted.
Any ideas? Help!!
Kind Regards
Catherine
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I am new to the ‘business’ and have a lot of questions, so should I be talking to my “underwriter” or is there a spot for people to chat? I have questions like, how did I get a merchant account set up when I’m not even sure what it is exactly, and why do I need such a complex account with a cool name just to sell some junk on ebay? And if I have a merchant account, does that mean I need to go to a bank and open an account, and if so what kind? I have never taken a business class although I have worked at a thousand businesses, but what does the other side have in store for me? And if I am able to become a merchant, does that mean that I have good credit, or that my credit was even ran? And where does the “insurance” come into play, because there is a such thing as shrink and what do I do if a chargeback is sent to me, and the list of questions keeps on going….
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Hi Jennifer,
I am going to send you an email right now so we can get all of your questions answered!
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Any suggestions on which provider to use to sell media streamers?
Amazon Fire TV etc. Paypal closed me down. & so did one merchant because i went over the monthly limit.
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Hi Gary,
I would try Durango Merchant Services, Payline Data, and Instabill.
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We are a new Financial Consulting Company based in Portugal. We are financial advisers and we provide credit counseling services for a fee. All our clients are US citizens. We re interested about getting setup with a merchant account and start processing credit card payments. Any recommendations? We have no processing history yet.
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Thank you for he great advice. I do run a small business as a psychic medium as well as a teacher. I have been in business for over 10 years, never having any chargebacks, I have clients across the country. I see clients in person, over the phone or skype, have a repeat in many of my clients I also invoice alot of my clients. Make a descent living and stripe is closing my account of course they found out I am a psychic my range in charges is from $25 to $3000 depending on what they are purchasing . Any suggestions on who to use or what to do.
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Hi Debra,
I would recommend checking out Payline Data, Durango Merchant Services, and Instabill.
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Hi Debra,
I run a website that helps psychics and I want to let you know you aren’t alone in this Stripe issue.
Many of the other psychic mediums I work with have also had their accounts cancelled by Stripe despite posing NO risk at all – never having a chargeback or a payment dispute of any kind – simply due to the label given to them by the industry. I’ve had to deal with this same issue myself and have found that signing up for a high-risk credit card processing company (mentioned here and suggested elsewhere on the internet) can mean seeing your credit processing fees go from $200-300 a month up to $700-800 a month, which is a huge, unfair jump.
Durango and a few others suggested here offer these exact outrageous rates I speak of – again – even for psychics who have NEVER posed a risk.
I use PayPal and currently they are my trusted provider, offering the lowest rates and the friendliest customer service.
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Extremely difficult finding a merchant account for vacant land/real estate… any ideas?
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Hi Chris,
I would try Durango Merchant Services, Payline Data, and Instabill.
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I am selling hoverboards. Paypal wants to hold my money for 90 days! Elavon does not want to work with hoverboard sellers. We have excellent suppliers and no problem fulfilling. Can you recommend a processor for us?
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Hi C. Reid,
I would try Payline Data, Durango Merchant Services, and Instabill.
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I own a catering company and we are looking for a reliable P.O.S for cash bar transactions. They would be relatively small transactions $5.00-$50.00 at a time. Just looking for our best option. Any recommendations?
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I am in the precious metals business and I am looking to start taking cards. I am having a difficult time finding a merchant company that will deal with coins and precious metals. Any suggestions?
Thanks,
Brian
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My industry typically has high chargeback ratios. It’s a SaaS business with a free trial that rolls into monthly payments. I’ve heard WePay is a good option. But what are the others? Looking for a processor that acts as the merchant and underwrites the transactions to minimize risk.
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Hi Matt,
I would try Durango Merchant Services, Payline Data, and Instabill.
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I sell inspired ha dbags and am having a really hard tjme finding a processor…can you please help??
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Hi Missy,
Since replicas are considered “high-risk”, your best bet is going to be Instabill.
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Looking for a high risk merchant account processor for research chemicals / peptide company. Do you recommend any?
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Hi Marion,
Thank you for your inquiry, I am happy to help you with this. Please take a look at Durango Merchant Service, Payline Data, and Instabill.
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Great info on this site! I have some more questions about my specific business, however. I am starting a local mobile chiropractic business with myself as SP. I am a strictly cash practice with fees ranging from $80 – $300 per session and online supplement sales to be added to my website later. Would this be considered high risk? Any processors you could recommend?
Thanks for the help!!
Dr. Hunter
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Hi Dr. Hunter,
Yes, this is generally considered high risk. I would recommend Payline Data or Durango Merchant Services.
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Hello,
‘m an independent escort and I was wondering which high risk merchant account company I should use for my business.
Thank You
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Hello,
I am registered as an sole proprietor in india running my tech support business. Previously i was using paypal to make transactions from usa to india but currently paypal is holding my funds for 21 days so for the same i am looking for merchant accounts and payment gateways from a longer time. I checked out instabill after your recommendation but i found out they took $499 as a setup fees which is too much for my new startup. So please help me in getting a better solution as a startup in tech support.
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I have a good friend that thru his magazine, he knows many of the medical cannibis dispensaries in the U.S.
Please give 2 more recommendations of a bank that would take them!
18553451009
Doug Oliver
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Hi Doug,
Please take a look at Instabill.
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i have been selling on ebay for the past 4 years. all of a sudden ebay is putting a 21 day hold on all monies in my paypal account which creates a lot of problems for me with buyers not willing to wait. now i am looking to accept credit cards instead of paypal. which credit card processing companies can you recommend for me? i do not do volume business but that might change if i can accept credit cards. i also plan to sell on other websites to increase my sales.
please advise,
Norma
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Norma, I sell on eBay and had to go through the “21” day waiting trial period. Just thought I would give you this little bit of info.
1. eBay allows you to “charge” the shipping fee of the sold item…there is a box on the shipping page that allows the shipping fee to be deducted once your funds are available.
2. Once the buyer leaves feedback your funds are released that night.
3. If a buyer does not leave feedback the funds are released on the 3rd night after delivery.
I know how frustrating the hold can be, but we all have to go through it to be able to sell on eBay. Good luck…the probation period will be over before you know it.
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Looking for a merchant processor for a payday/title loan company.
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Hi Dale,
I would recommend taking a look at Instabill
I hope this helps!
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Still trying to get info on several other offerings for merchant and payment services, including authorize.com; First Data GGE4; Link Points; Skipjack Premium Financial Services; and NETbilling. Any ideas? Thanks!
Though we only sell and rent MJ-related equipment and products, we still have some difficulty finding a remote payment service, as PayPal and NMI both have underwriters who won’t accept even associated businesses.
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My parents have what is considered a “high risk” online business since they sell vape juice and supplies. (For those that aren’t sure, read fancy electronic cigs. There is a huge difference in the two however) The store since it opened has had Authorize.net as their processor. We can’t use Paypal yet either! They were pretty great to deal with too. Good Luck!
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Hi,
I’m organizing a family benefit event which will include a live/silent auction. We’d like to offer a CC payment option with minimal fees but it might generate large transaction amounts ($1-3,000) due to the auction items. Will this put us at High-risk for holding funds, etc?
Thanks for your insight,
Heather
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Hi Heather,
Not necessarily, but the mix of large transactions and not having a processing history will make your account at least slightly riskier in the eyes of a processor. You probably won’t have to get a special high-risk account, however. Collecting contact information and carefully verifying that the buyers are the actual cardholders will help you to defend yourself if something goes wrong.
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Hello, I love your site, very informative. I need some advice. I sell mushroom spores, including psilocybe mushroom spores, which are legal in all the world except 3 US states. My merchant processor dropped me after 12 years and now I’m having hard time finding a new one. Well, not a merchant processor, its the banks above them denying me. They are scared of legal spores for some reason. Maybe the processor I have chosen is working with some uptight banks? Any suggestions of who I should go through?
Thanks for all the great information on this site.
-Rich
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Hi Rich,
Your best bet is to try a provider that specializes in high-risk merchant accounts. I’d bet Payline Data or Durango Merchant Services could get you set up. If not, come back and we’ll try to find another option.
Good luck!
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Does the shopping cart/ecommerce platform matter if you have a high risk model? Can something like Shopify be used?
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Hi John,
Yes, the shopping cart/ecommerce platform matters because some accept only a handful of “high risk” categories while others may not. So it is always best to check if your particular product is supported by the merchant account provider and the shopping cart/ecommerce platform.
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I am trying to find a merchant! We are a online head shop, we sell water pipes and vaporizers. Problem is I believe either our Brand Name or our Website content may be preventing us from getting approved. We keep trying and getting denied. Any help or opinions would be greatly appreciated!
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Thanks for this great site! Although I have a very tasteful woman-friendly boutique, by business is considered “high-risk” by many people’s standards because I sell lingerie, lubes, books, and sex toys. I decided to go with Shopify for ecommerce and POS, but cannot use their gateway (because I’m an adult business), so they referred me to Authorize.net. Authorize.net told me that they can provide a gateway for my business, but not a merchant account (because I’m an adult business). And now I’m potentially looking into Paynet (but it seems that have terrible reviews). I am a one-woman show that boot-strapped my business and am not dealing with large amounts of money (yet). Do you have a better and more reputable recommendation for merchant accounts that may work with a shop like mine, but won’t charge me large specialty amounts? (PS I currently use PayPal Here at my brick and mortar shop, but that won’t work as well with Shopify’s POS). Thanks!
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Hi Rachel,
I would recommend Durango Merchant Services and Payline Data. I hope this helps and if you have further questions, please contact us.
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I have a Pre-employment background screening company—is this considered high risk?
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Beth,
Yes. Pre-employment screening is generally considered high-risk.
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I am a distributor for a weight loss dietary supplement company. Any tips on who I could use that would make me open a 10% rollover escrow account? Its all natural supplements.
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Weight loss supplements are difficult to approve because the business model is generally considered high-risk, but give Durango or Payline a try. They may be able to accept your account.
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Some of these make no sense. Lingerie for example. how is that a high risk? I can sort of see a lot of the others. Maybe “lingerie” means used? Yea there is a market for used (and dirty) “lingerie”. I also don’t really see how selling sexual toys would be high risk. Maybe some mans wife notices a purchase from some sexual toy shop and he makes up the excuse he didn’t purchase anything from them (probably butt plugs) and such. I can totally see the 1-800 and psychics ones. Total ripoffs.
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Problem with the “psychics” one is that they tend to lump anything metaphysical or new age in there. I have a tarot reading business. I am very clear that I do not do predictions and I am not a medium. Some in the tarot community are, but the majority are not. I also sell decks, both retail and ones I have designed myself and ended up having to separate that from the rest of my business just so that I could process those sales. A few bad apples have ruined it for those of us who are NOT scammers.
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Hey Eva,
Agree. The problem is all psychics get lumped – respectable, independent business owners get lumped with hotlines – where they have a lot more callers, higher volume turn around and a less personal relationship is developed with clients.
For independent business owners – doing anything psychic, tarot, metaphysical – the risk is very low. Most of the psychics I train, work with and know – have either never had a chargeback or it comes around only once in a blue moon. Very low risk, so quite the contrary.
High-risk merchant classification I believe should be based on each individual merchant, not as an overall class titled “fortune teller,” which is such an outdated term anyway. No one calls themselves that anymore. But as the article states, the classification given means they can triple your fees – so there’s no real reason to change unless more people spread light on the issue.
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We are a marketing company who offers website development / SEO analytics / Press Release/ online digital biographies/ a yerly Whos Who registry / image inhancers such as marketing You-tube videos to our 200k followers on Twitter looking for a merchant who is willing to accept 100% key in entries of CCs , and a 2.5 % chargeback ratio / were we win over 90% . We are doinmf 100k a month through 3 terminals would like to deal with 1 , good 1
Any recommendations….
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Hi Mike,
Your best bet is going to be Instabill.
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We are a new company. The merchant has an open case with the federal government therefore they went from 2% charge back to 1% chargeback and they shut us down and it has been HELL trying to find a merchant to approve us for processing. What are we doing wrong?
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Hi LeTrice,
Have you tried Durango Merchant Services or Payline Data? They can usually get the job done and give fair rates as well, even if you are on the MATCH list.
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see the above company
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@Henry
Firearms Dealers, especially online or Card Not Present (CNP) Firearms Dealers are considered high risk due to the age restrictions and requirements when making purchases. This is also a highly regulated industry with state by state laws. Hope that helps.
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We need a MP for $200K/mo volume of what you term in your list “discount medical care provider”.
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First thought would be to try Payline Data. If they can’t set it up, try Durango Merchant Services. If they can’t do it either, come back and we’ll try to find a different processor that can get you up and running with good contract terms and service.
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Hi,
I am a merchant selling trial/autoship subsciptions to health and beauty products. I am looking for someone who can help me line up some credit card processing options. Is there anyone you suggest that I reach out to?
Thanks!
Paul
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Hi Paul,
I would recommend Durango Merchant Services, Payline Data, and Instabill.
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Lingerie is considered high risk? Why?
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Personally, I’d like to see some justification for the claim that firearms is a “high risk” market segment. I suspect it was put on this “no fly” list for politically correct reasons, not solid financial reasons.
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I would guess that firearm sales require special arrangements because you can’t sell them to just anyone. Whoever is the payment processor doesn’t want to be on the hook if the merchant sells to criminals or something.
If everyone who bought a gun was a law abiding citizen who could clear a background and credit check with no criminal history, I doubt this would be an issue.
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I’ve been in the industry for 10 years. The reason for firearms being high risk is a number of factors including the political aspect, the legal issues, attempted chargebacks, buyers putting non-refundable deposits on future delivery then trying to get that back when they find a better deal elsewhere, and the criminal element trying to get guns. As we know, online sales must be shipped FFL to FFL, but a lot of it is political.
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THIS WAS VERY HELPFUL. THANK YOU.
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