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.