High Risk Merchant:How Do I Know If I Am One?

2007-03-08 10:33:40

( Financial )



For every sort of undertaking there is an inevitable risk involved,especially if it is a business enterprise you plan to establish.Knowing this first,determine ahead the possible pitfalls of your planned business.

How risky can a business be?What is the possibility that the type of business you have chosen is branded as "high risk and of you being a "high risk merchant"?Any business is a risky business.Every business even though it is has a commendable,credible,feasibility report,still could not predict the unforeseen future life of the business.You can't really avert the unpremeditated scenario that will arise beforehand.Thus,every business can be considered as a "high risk business.But in the real world of business,high risk businesses are businesses that a have high volume of merchant accounts which could not obtain a credit card processing from domestic banks or traditional banks.They are also businesses that have high volume merchant accounts that exceed the limit required by these traditional banks or domestic banks for credit card processing.Thus,these banks can't issue a credit card for these types of businesses.Moreover,these banks are worried about the possible problems that will arise in the future which they will shouldered with processing the credit cards of these types of business.

You are a high risk merchant if you are a merchant whose merchant account could not obtain a merchant account service a bank onshore, because your type of business is branded as "high risk".Thus,because your business is now considered a high risk business,you are now considered a high risk merchant having a high risk merchant account.However,it doesn't mean because you are now a high risk merchant,you can no longer have a merchant account for your high risk business.Don't worry about it, for there are banks and independent sales organizations that will considered your business conditions and could offer an alternative merchant accounts or could open a high rik merchant account for you, as well as recommeding you to apply for an offshore merchant account service.An offshore merchant account is a merchant account that is not limited only to an allowable volume,thus allowing your business to grow.

Therefore to set up a high risk business is not that risky at all if there is a merchant account provider that is ready to help you in your business.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.