Worried About High Risk Merchant Account Fees?

Introduction to High Risk Merchant Accounts

High risk merchant accounts are essential for businesses operating in industries considered high risk by payment processors. These accounts are necessary when:

Your aggregate merchant account has been shut off by popular payment processors like PayPal, Stripe, or Square.

Your business is in a high risk payment processing industry.

While high risk merchant account fees are unavoidable, they are necessary for profitability in online or in-store sales for high-risk businesses.

Dedicated vs. Aggregate Merchant Accounts

Dedicated high risk merchant accounts differ from aggregate accounts in two key ways:

Set up specifically for your business, requiring a longer underwriting process.

Carry additional fees that may initially appear daunting to merchants unfamiliar with high-risk payment processing.

Credit Card Processing Fees: A Breakdown

Credit card processing fees for high-risk merchants include:

Non-negotiable base fees:

• Interchange rates
• Assessments charged by issuing banks (Visa, Mastercard, Discover, etc.)

Negotiable markup rates:

• Interchange plus
• Tiered and bundled rates (vary based on processing method and chargeback risk)

High risk merchant account specific fees:

• Set-up fees
• Capture fees (for swipe terminals or high risk payment gateways)
• Processing fees (fixed monthly fees based on processing volumes and sales)
• Penalty fees (from consumer chargebacks)

Managing High Risk Merchant Account Fees

While it's impossible to avoid high risk merchant account fees entirely, you can minimize their impact:

Seek payment processing solutions from experts who can negotiate the best rates.

Work with providers who understand your specific industry risks.

Look for providers with in-house underwriting staff for transparency regarding fees.

Conclusion

High risk merchant account fees are a necessary cost for businesses in high-risk industries. However, by working with experienced payment processors like PayKings, who have relationships with multiple acquiring banks and understand various high-risk industries, you can minimize unnecessary fees and ensure smooth, uninterrupted payment processing for your business.

For businesses needing a high risk merchant account without unnecessary fees, consider applying for a free quote from a specialized provider. This can help you understand the specific costs associated with your business type and find the most cost-effective solution for your payment processing needs.