Accounts For Business and Risks Related to Them
Sometimes owners of small businesses get designation as ‘high-risk merchant account’. It is important to understand that this is not an unfair judgment about the company, its products, or its services. Using this term, the provider just indicates the fact that a high-risk merchant account is prone to chargebacks and fraud and should be carefully protected.
Reasons for Being Designated As a High-Risk Merchant Account
Bank online accounts and eWallet is the necessary tool for many businesses that operate online. However, some of them may have to start a high-risk merchant account. Such a situation may happen due to these factors:
- A company operating in specific countries. Some countries are associated with a higher risk of possible fraud.
- Risky area of industry where the company operates.
- A relatively new company. When you have just launched a company it often has to get a high-risk merchant account.
- History of the transactions. It is important to keep records in order and be honest with partners and clients.
- Chargebacks. It’s always better to avoid them and use a special service to solve all the customers’ problems.
- Personal credit of the owner. This reason matters in Europe and all over the world, so the businessman should be careful even in personal transactions.
Other reasons for being labeled as a high-risk merchant account may also apply. If you have questions related to this topic, Maxpay can give you a consultation. Open an account and follow the advice of the vendor to stay protected and safe while operating online.
Advantages of a High-Risk Merchant Account
Bank online account that was labeled as high-risk one still has its benefits, namely:
- Flexible options for acceptance of payments.
- Recurring transactions.
- Bigger volumes of sales.
- Fewer restrictions for international operation.
These advantages are helpful for the company and offset higher rates for the service. Money in USD or EUR will be safe in the eWallet, protected by the provider of the merchant service.
Open an account for e-commerce and do not be afraid if it is designated as a high-risk account. Ask your provider for the reasons and probably you’ll be able to turn it into a low-risk account through some period of time. While the risk is high use the benefits of this position. Money is going to be safe anyway.
This article has been published in accordance with Socialnomics’ disclosure policy.