Can High-Risk Businesses Get Credit Card Processing?

Hand Swiping Credit Card In Store

Credit card processing companies help businesses come up with an alternative payment option other than cash or checks. With a credit card processing service in their stores, lenders and businesses can start accepting credit and debit card payments using swipe terminals or via online payment portals. However, these companies also have reservations when it comes to approving processing for all types of businesses. The most common business to business arrangements is made with convenience stores, retail outlets, and even credit card processing for lenders.  Interestingly, there are businesses that are considered high-risk businesses, and they may pay higher credit card processing fees compared to companies with normal risk levels.

What are considered high-risk businesses?

Businesses are considered as “high-risk” if they accept online or Internet payments and have large chargeback request from their customers. Some types of businesses are classified as high-risk businesses because of the nature of their services such as casino websites, adult services, telemarketing, and auction sites. Card processing companies also look into the business credit score, years in the industry, money-back-guarantee offers, and high susceptibility to fraud such as phone or Internet transactions. This is why it can be difficult for small and start-up business owners to get credit card processing for their new businesses.

Card Processing for High-Risk Businesses

Getting credit card processing for high-risk businesses can be a challenge for business owners. They might get denied several times, but the key to getting approval is to seek card processing companies focusing their services for businesses that are classified as high-risk ones. These businesses may need to pay higher rates for accepting credit card payments, but it gives them the option to have an alternative payment mode to offer their clients.

Card processing companies dealing with the high-risk market needs to study the best options to offer to merchant businesses. These companies would be able to arrange payment gateways, shopping carts, and software installation for online card transactions. Clients with physical business locations should be equipped with card terminals for them to process payments at any time a customer comes in. Even financial lending institutions can take advantage of these arrangements to collect repayments from their borrowers. This is because not all people carry cash with them, and sometimes card payment is the most convenient way to pay for purchases and dues.

Macro shot of credit card

Having an alternative mode of payment accepted means more revenue for small and start-up businesses. The slightly higher charges and fees applied by card processing companies will be worth it in the long run. Small business and those who have just started can slowly build up their credit scores and be able to bargain with these companies for a better contract. For the meantime, they have fewer options and will have to do with those companies focusing on high-risk merchant application. Once they have gained a better credit reputation, they can choose among the different card processing companies for the best services offered, the most reasonable charges and rates, and the best customer after sales support.

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