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Worried About High Risk Merchant Account Fees?

May 14, 2023

high risk merchant account fees - PayKings

So here you are, you either just had your aggregate merchant account shut off by the popular payment processors like PayPal, Stripe, or Square, or you’ve done your research and know your business is in a high risk payment processing industry. The answer to both of these predicaments is that you need to get a dedicated high risk merchant account to ensure your payment processing runs smoothly from month to month and with less risk of getting interrupted. But you’re worried about the fees associated with high risk merchant accounts. High risk merchant account fees are unavoidable, but necessary if you want to be profitable selling your products or services online or in-store.

Dedicated high risk merchant accounts are different from the aggregate merchant accounts offered by PayPal and Stripe in a few ways. One is that dedicated high risk merchant accounts are set up just for your business, so the underwriting process for your business may take longer to complete than aggregate accounts that often offer instant approval. Second, dedicated high risk merchant accounts carry with them additional fees that, from their first appearances, scare merchants who are not privy to the particulars surrounding high risk payment processing in eCommerce and retail businesses.

Credit Card Processing Fees: A Break Down

As a merchant, you may already have an idea about the fees associated with accepting credit card payments for your eCommerce or brick and mortar store. There are non-negotiable base credit card fees charged by the issuing bank (aka credit card organizations like Visa, Mastercard, Discover, etc.) like the interchange rate and charging assessments. Then there are negotiable markup rates like interchange plus and tiered and bundled rates that can vary due to processing method (i.e. swipe, eCommerce, etc.) and factors surrounding risk of consumer credit card chargebacks.

High risk merchant account fees are additional costs high risk merchants need to worry about when seeking payment processing solutions. There are set-up fees when a payment processor on-boards you as a merchant; capture fees relating to your swipe terminal or high risk payment gateway; processing fees which are made up of fixed per-month fees based on your processing volumes and sales; and penalty fees incurred from consumer chargebacks to name a few high risk merchant account fees.

How to Avoid Paying More for High Risk Merchant Account Fees

If you are a high risk processing business, there is really no way to avoid paying high risk merchant account fees altogether. This should not deter you from selling your goods and services online or in-store, as some high risk processing industries, like the CBD industry, project astronomical growth in the coming decades.

The only way to prevent yourself from eating your shirt in high risk merchant account fees is to seek payment processing solutions from experts who can work on your behalf to negotiate the best rates on your high risk merchant account. We here at PayKings have over 20 relationships with acquiring banks in the US, Canada, and abroad. Moreover, we work closely with merchants in high risk payment processing business like in CBD, eCig/vape, firearms, collection agencies, recurring billing and subscription, and other high risk eCommerce and retail industries. We understand the risks associated with your business type, and have an in-house underwriting staff that will provide you will full transparency regarding your high risk merchant account fees.

So if you need a high risk merchant account but don’t want to be stuck with unnecessary merchant account fees, let us help you here at PayKings. Apply for your free high risk merchant account quote here.

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Kyle Hall CEO

May 14, 2023 | High Risk Merchant Account | Kyle Hall