High-Risk Industry Misconceptions

Introduction

Finding a suitable payment processor can be challenging when you own a high-risk business. Not all of them will take on your business, and some may charge you extra fees. In this post, I’ll explain what makes a business high-risk and dispel some common misconceptions about these companies.

Not all adult websites are high risk.

• Not all adult websites are high-risk. These sites may be low-risk, medium-risk or somewhere in between.

• If a website is high-risk by nature, it’s likely that the site owner is aware of this and has taken precautions to ensure that the site does not contain malware or phishing attacks.

• Before you decide which adult website to use for your personal pleasure, we recommend looking at some reviews from trusted sources specifically related to that particular site.

You don’t have to have a website to be high risk.

Some people think you must have a website to be considered high risk. This is not true! You can be at increased risk without having a website.

Here’s a list of some other types of businesses that are high risk:

• A physical storefront with employees and delivery vehicles

• Services provided by employees on-site or over the phone (like medical or legal)

You can get a merchant account even If you have bad credit.

You can get a merchant account even If you have bad credit.

This is a common misconception in high-risk industries, but it’s not true. A bad credit score will prevent some merchants from getting approved for their business, and only those approved for the service will receive one. This means if you’re trying to start your own business but have low or no credit, now might be time to consider another type of payment method that doesn’t involve opening up an entirely new line of credit at your bank or applying for a new card through one of the many networks out there like PayPal or Square.

You can still get a traditional merchant account, not just an offshore one.

Although it is common to think that all merchant accounts are offshore, this isn’t the case. You can still get a traditional merchant account, not just an offshore one. Also, if you have bad credit or a flawed business model, then don’t worry! There are still ways for you to get a merchant account despite these problems.

Owning a high-risk business doesn’t mean you will be charged extra fees.

The first thing to know is that you will pay the same fees as any other business if you have a high-risk business. In other words, if you have an account with us and we charge you a $250 annual fee, there’s nothing special about your account or the type of business it represents. You’ll just be charged more per month than someone with a different account at our institution.

The second thing to know is that although we may charge more monthly fees or interest rates for high-risk businesses, this doesn’t mean those businesses won’t be able to afford to use our services! While it’s true that these types of companies tend to have lower credit scores and less cash on hand than others—which means they may need higher credit limits from us—this doesn’t mean they can’t get approved for loans or lines of credit at all. As long as their cash flow is strong enough (i.e., their monthly average transaction size is high enough), then they should be able to qualify regardless of whether or not their industry falls under high-risk status within our company’s guidelines.

A high-risk merchant account helps you avoid chargebacks.

A high-risk merchant account helps you avoid chargebacks.

You can avoid chargebacks by using a high-risk merchant account.

It’s pretty simple: if you’re operating in an industry considered high risk, you should use a high-risk merchant account to avoid any future losses due to chargebacks and fines.

A payment processor doesn’t care if the product or services you offer is high risk or not.

The payment processor does not decide whether or not your business is high risk. They care only about the risk of chargebacks and want to ensure that you’re protected in case a customer disputes the transaction with their bank.

Your business model isn’t necessarily high risk just because it’s complicated.

The first thing to understand is that you can’t judge a business model by its complexity. The fact that it’s complicated doesn’t make it high risk; instead, the type of industry will determine whether or not your business is considered high-risk.

For example, a travel agency may often be thought of as a “high-risk” industry because they deal with foreign currency and international travel—but if you look at how much money they lose from fraud or chargebacks after doing some research, you’ll see that this isn’t always true for all businesses in the same field. Some agencies lose only 1% on average without special protection measures to protect against fraud; others are over 5%! On top of that, there are many other factors like size and location which would affect those numbers even more—and then there’s also the technology used by agencies which affects them differently based on what type of products/services they offer their customers (eCommerce vs. Physical Storefronts). It all depends on who owns them, too: large corporations tend not to have as much risk compared with small startups where management hasn’t been appropriately established yet (or worse yet…no control at all!).

There are many misconceptions about what makes a high business risk.

It’s important to note many misconceptions about what makes a high business risk. People often think that your merchant account is automatically considered high risk if you’re in the adult industry. While this can be true in some cases, it’s not always the case. You can have an adult website and still get approved for a standard merchant account with good credit. High-risk industries don’t have to include adult websites—they could also include businesses like online gambling or pharmaceuticals.

If you have bad credit but still want to accept payments online, don’t worry—your situation doesn’t make you ineligible for a merchant account! Several payment processors specialize in helping people with low scores find solutions that work for them and their business (and we’ll talk about some of those later).

Conclusion

A business is considered high risk if it has a low credit rating, sells products or services that are illegal or fraudulent, or otherwise poses a greater-than-average probability of being involved in chargebacks. But because your company is labeled high risk doesn’t mean you can’t get an account with a traditional merchant processor.