Looking for a merchant service provider, but are unsure who is the right fit for you? Not only do you have to do your due diligence as a merchant to find the best merchant service provider, but merchant service providers also need to make sure that they can take you on board.
Being considered as a merchant through the application process has nothing to do with how you are as a person or what type of business you have; it mostly revolves around how you run your business. How your business operates can place you into two categories – high risk merchant or low risk merchant. What is the difference between the two?
Below are a few ways we can easily describe what a high and low risk businesses are and how it affects the merchant services application process.
What is a high-risk merchant account?
High-risk businesses are more prone to chargebacks and, on occasion, fraud. Because of the increased tendency in financial loss, high-risk businesses typically pay significantly higher fees for merchant services. Here are a few factors that can classify you as a high-risk merchant -
Every high-risk business is unique and being a high-risk business does not mean that you are going to get rejected from a merchant service provider. Payment processing companies, such as TCB Pay, specialize in high-risk merchant accounts and can offer solutions to keep both you and your business running.
What is a low-risk merchant account?
Low-risk merchant accounts tend to be a little more straightforward when classifying, in comparison to high-risk merchant accounts. If your company meets the below criteria, then merchant service providers will consider you as a low-risk merchant account -
If you and your business fall outside of this description, then your risk level rises. Examples of low-risk businesses are storefronts offering cash and carry, or require little to no upfront payment from customers to offer goods and/or services.
If you are unsure on whether you are a high or low risk business, feel free to reach out to us. At TCB Pay, we are here to help you with your business needs and will find a solution regardless of your risk classification. Contact us today! Call or text us at 866-444-8585 or email us at support@tcbpay.com.