Is My Company Considered High Risk?

Receiving the label of a “high-risk business” may seem daunting, but it is not a definitive judgment on your business’s potential for success. Instead, it is determined by the level of risk you pose to credit card processors.

You may be astonished to discover the wide range of businesses that can fall into this category, as it is not solely reserved for those dealing in questionable products.

Continue reading to grasp the significance of being deemed high-risk and how it impacts payment processing and how Rogue Strategic Consulting can help your company.

WHAT IS A HIGH-RISK BUSINESS?

A high-risk business is one characterized by a greater likelihood of chargebacks, fraud, or financial instability.

Credit card processors determine your risk level as a client, typically considering factors such as the industry you operate in (with certain industries, like gambling, adult entertainment, CBD, and tobacco/vaping, being more prone to fraud) and your personal/business circumstances (including low personal credit, a negative financial history, past termination of a merchant account, or previous business failures).

Being designated as a high-risk merchant can complicate credit card processing, as financial institutions prefer clients that generate profit and pose minimal risk. Consequently, high-risk businesses often face rejections from standard merchant account providers.

However, there are reputable processing providers that specialize in catering to high-risk businesses, ensuring viable alternatives are available.

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