Why is my business “High Risk”

Another reason a company may be considered high risk may be high ticket prices.Suppose a merchant sold items for $10,000 – $20,000 a piece and earned $1,000,000 a month in total.By the time a week passes they could be holding as much as $250,000 in their business account. Normally , however, it takes a patron a week to a month to request a refund.In the eyes of the bank, the merchant is actually receiving something similar to a $250,000 – $1,000,000 signature loan.That is not a gamble many banks like to make.

Finally many merchants may state, “I’ve been in business for 20 years. I know all of my clients,…and, I never have chargebacks…..Why is my company classified as high risk?”Please , no offense intended.This is by no means a reflection of the individual business. It is more so a reflection of thew business model, that may fall into a high risk classification.

Now, before this article takes on the appearance of an excercise in futility ; it is important to know that high risk businesses such as CBD business can receive a merchant account. Again , you can receive a online CBD merchant account for high risk CBD businesses !

In order to acheive a high risk account you must be aware of three facts :

  • Your agent / broker has experience with high risk accounts and has it stated clearly on their promotional material.
  • The high risk processor needs to have access to several liberal banks both stateside and offshore.
  • You must be open to offshore merchant solutions ( especially for high ticket merchants and online pharmacies).

In conclusion, in order to obtain a high risk merchant account, not only do you exercise these facts ; but, you must be honest with your agent. Think of him or her as your advocate , opposed to your interrogator. Also, be open to additional payment methods like payment by check. Sometimes, not only is this a quicker approval event; but, it serves as a complement to merchant services.


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