Introduction –

With the consistent rise in digital payments, an increased number of businesses are looking for cost-efficacious payment processing solutions. In fact, around 18% and more consumers still prefer using money (cash) to make payments. Although most payment services providers attend diverse verticals, but there always certain businesses that can be more vulnerable about. You can also look here for more details on, high-risk merchant account instant approval & know more about it. These can often belong to high-risk industries that has more risk of fraud and chargebacks. Plus, if your business comes into the category of, ’high-risk’, category then it is possible that you may find it difficult to find a right payment processor.

High Risk Business –

Businesses that have been defined or characterized as high risk, will require a high-risk merchant account, that will accept debit and credit card payments. Plus, a high-risk business is the one that has a greater chance of fraud and chargebacks. But at the same time, there is no central authority or framework in the payment industry which can correctly identify the risks factors connected with a business. Besides all of that, every bank and also, every payment processor has its own standards. There are payment solution providers which may tell upfront that they don’t work with some industries.

Factors Determining High Risk –

Businesses from some industries are naturally carry higher risks & they may be flagged as high-risk business. Some of the high risk’s businesses are- CBD, e-Cigarettes, Vapes, Stun guns, Credit repair, multi-level marketing, adult products, Pawn shops, Supplements, Tech Support and SEO services. Other factors that can label or term a business as high risk comprises of- new business. If you are a green-horn in your business & have never processed payments before, then you can be termed as a high-risk business. Next, is poor credit records or if your credit scores are low, then you can be termed as high risk.

Defaulting in Loan and Controversies –

If you have defaulted in paying a loan and you are on the MATCH list, then there are high chances that you can be rejected and termed as high-risk business. And, the same applies to businesses which have controversial product lines, or they function on legal slope that is not so good. Besides all of that, if you are a business that is dependent on mostly international sales, then you may have high risk scores. This is due to the volatile economic dynamics. And, the industries that are highly regulated and governed by legislation or government is also the one, that is termed as high-risk business. A processor can plainly decline your application. However, there can also be payment processor that can choose to offset your business risk by putting some measures.