Welp MagazineNo matter what industry your business works within, there are many unforeseen issues regarding processed payments and other variables that lead to a potential merchant labeling you as high-risk.
But when it comes to finding the right high-risk payment processor and understanding what matters most to your business, there are several common misconceptions you’ll need to overcome before making a final decision.
Not all high-risk businesses are in controversial industries
Yes, businesses that work in adult entertainment, CBD oils, and debt collections are commonly associated with being tarnished with the high-risk brush, but there are plenty of other businesses that are just as likely to receive the ‘high-risk’ label.
In fact, many global business industry mainstays like online dating, electronic stores, furniture outlets, and even travel companies are considered high-risk these days.
Unfortunately, a number of businesses are blindsided by this and don’t plan their long-term goal accordingly.
You can have a flawless record and still be considered high risk
While fresh potential business ventures can cause risk alarms to ring out immediately, this issue isn’t exclusive to business novices alone. As a matter of fact, you can maintain an absolutely flawless record for decades, and yet still be deemed high-risk due to the industry you’re working within.
Whatsmore, the perceptions of risk within your industry can change depending on the individual success (or lack thereof) of your company, or the industry as a whole. In other words, the status of your business risk can continue to fluctuate.
You can be labeled high-risk for having a high rate of transactions
On top of a seamless reputation and record not preventing you from being perceived as high-risk, your rate of transactions may also play a large deciding factor.
If the average transactions of your business range around $20,000 monthly, you should expect a high-risk label to be put upon your business. This is by no means a comment on your trustworthiness or risk as an individual and more in relation to how merchants perceive your industry as a whole.
Those perceptions can include variables like the chances of fraud occurring, returns, long international delivery periods, and even the likelihood of chargebacks (a common factor in subscription services being labeled as high-risk, despite their rising popularity).
Finding the right high-risk payments processor doesn’t have to be difficult
When you’re encountering all of this new information and having to deal with the issues that finding a reputable high-risk payments processor can bring, it’s easy to lose sight of your business goals and keep your focus where it matters most – your business.
But finding the right payment partner isn’t always as difficult as it may seem. All it takes is a little research and care to find a long-serving, experienced, and reputable Merchants Services company that will take care of your specific needs.
With over thirty years of experience in credit card processing that’s safe, simple, secure, and stress-free, Humboldt Merchant Services has been providing tailor-made payments processes since 1992.
