How to set up a high-risk merchant account
High-risk merchant accounts are frequently required for businesses with a high risk of chargebacks or fraud, such as online gambling or adult entertainment sites. Opening a high-risk merchant account is challenging but not impossible. This post will go through exactly how to set up a high-risk merchant account.
1: Determine the Business Type
The first step in establishing a high-risk merchant account is deciding your business type. Various companies, such as internet gambling, adult entertainment, and e-cigarettes, are considered high risk. It is vital to be genuine about the nature of your business since lying about it may result in the account being terminated later.
2: Find a High-Risk Merchant Account Provider
Following the determination of your organisation’s nature, the next step is to select a merchant account provider specialising in high-risk merchant accounts. These providers have dealt with businesses like yours and understand the unique challenges of high-risk merchant accounts. You may find high-risk merchant account providers by searching online or asking other business owners for recommendations.
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3: Gather All Necessary Documents
You must give appropriate documents to the merchant account provider before you may open a high-risk merchant account. A legitimate government-issued ID, a business licence, and a recent bank statement are all possible requirements. A copy of your website’s terms of service and a detailed description of your company concept may be requested. Prepare to submit additional papers if necessary.
4: Conduct a Background Check
Most high-risk merchant account providers will do a background check on the company’s owner and key employees. This is done to ensure no prior history of fraud or chargebacks. The background check may include a credit check and a criminal record check.
5: Complete the Application
When you have obtained all of the necessary documents and conducted a background check, the following step is to complete the application. High-risk merchant account providers frequently offer an online application method in which you must give information about your organization and the products or services you sell. Make sure that you thoroughly and accurately answer all of the questions.
6: Wait for Approval
After submitting your application, the merchant account provider will review it and determine whether or not to approve your account. This treatment might take days, if not weeks. Remember that high-risk merchant account providers may charge a higher fee and need more reserves than regular merchant account providers.
7: Set up the Payment Gateway and the Shopping Cart
After your high-risk merchant account has been approved, setting up a payment gateway and shopping cart is the following step. A payment gateway is a service that allows you to take credit card payments over the internet. A shopping cart is a software that will enable customers to add items to their shopping cart and check out on your website. Several payment gateways and shopping cart providers are available, so choose one compatible with your high-risk merchant account.
8: Keep an eye on Your Account
Once your high-risk merchant account is set up, it is necessary to check it frequently. This involves monitoring transactions for suspicious behaviour and ensuring that your account conforms with all of the rules and restrictions imposed by your merchant account provider.
To summarise, establishing a high-risk merchant account might be challenging, but following these steps can increase your chances of success. It should also be noted that high-risk merchant account providers may charge a higher fee and need bigger reserves than ordinary merchant account providers. And to keep a close check on your account to avoid chargebacks or fraud.