Any savvy small business owner should be prepared to face all eventualities — from fluctuating income and natural disasters to consumer discontent and any change in inventory. On the other hand, no entrepreneur ever thinks their business can get rejected by a credit card processor because they are considered high risk.
What does it mean to be High Risk?
Credit card processors aim at making money with the least complications possible. Therefore, any business vulnerable to high rates of chargebacks and fraud is considered risky and may need to go to a high-risk merchant account payment gateway. Furthermore, any company based outside the United States is also prone to a lot of trouble and will be deemed high risk. For that reason, processors often go for businesses that are 100% legitimate and have good credit.
What are the Consequences of being High-Risk?
- An Extra budget to meet legal requirements