A high-risk merchant account is a bank account or payment processing agreement suitable for a business deemed high-risk. High-risk businesses typically have to pay higher fees for merchant services, which can increase their operating costs. Some companies work specifically with high-risk merchants, offering competitive rates designed to attract businesses that are having difficulty finding a place to do business.

Businesses in different industries are considered to be high risk due to the nature of the industry. All adult businesses are high risk, as are businesses such as travel agencies, car rental companies, collection services, legal gambling, surety bonds, etc. Because working with these companies may pose risks to banks and payment processing companies, they are forced to sign up for high-risk merchant accounts that have different fee schedules than regular merchant accounts.

In a bank, a merchant account is a bank account that allows people to receive payments by credit and debit cards. The bank may also offer a payment processing contract or the business may need to open a merchant account with a payment processor that collects the funds and routes them to the bank account. In the case of a high-risk merchant account, there are concerns about the integrity of the funds and the possibility that the bank could be called into question if something goes wrong.

Payments to a high-risk merchant account are considered to carry an increased risk of fraud. For example, a person may use a stolen or forged credit card to make purchases, or a consumer may use a debit card without sufficient resources to rent, say, a car. This increases the risk for the bank and the payment processor, as they will have to deal with the administrative fallout associated with fraud. E-commerce can also be a risk factor, as businesses don’t actually see a printed credit card; they take orders over the Internet, which greatly increases the risk of fraud.

When a merchant requests to open an account with a bank or payment processor, they may be prompted to request a high-risk merchant account. It is a good idea to compare the prices, terms, and services of several high-risk merchant account products before choosing a company to do business with, as prices can vary widely and it may be possible to get a better deal with them a little digging.

iPaytotal offers you a cost effective international financial solution. Different categories of companies can open a merchant account with iPaytotal: whether they represent a low or high risk merchant account, whether they are companies or corporations or even micro-entrepreneurs.

What is a merchant account?

It is a special bank account used to receive the funds transferred by your customers. It comes with a payment gateway and many other features.

Why do you need a merchant account?

Credit / debit cards are the most common electronic payment methods. By offering the possibility of purchasing with a card on your online store, you guarantee yourself an increasing profit.

How to get a merchant account? Fill out the request form. You will receive our response within 48 hours. You will need to send us some additional documents, make sure your website meets all the requirements, and the installation can begin.

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