A merchant account allows a business to accept credit cards debit cards, gift cards and other forms of payment cards. This is also widely known as payment processing or credit card processing.

Merchants, or business owners who receive credit card payment for their goods or services, must apply for a merchant account typically through a merchant acc. The merchant account will typically be established based on several factors. Merchants who own businesses with poor or no credit may find it difficult to establish a merchant account through traditional routes.

Rates and fees

Merchant accounts are not free - a variety of charges are involved. Some fees are charged on a monthly basis but most are charged on a per-item or percentage basis. All of the monthly fees are at the discretion of the merchant account provider but the majority of the per-item and percentage fees are passed through the merchant account provider to the issuing bank according to a schedule of rates called Interchange fees, which are set by Visa and Mastercard.

Each transaction is categorized into an interchange category depending on the kind of card that was used for the transaction and the circumstances of the transaction. For example, if a transaction is made by swiping a card through a credit card terminal it will be in a different category than if it were keyed in manually. If a transaction is made using a rewards card it will fall into a different category than a standard card. The permutations add up - in total there are about 130 categories, each with a different rate.

Merchant account providers usually group the 130 categories into 3 or 6 categories and apply a single rate to that entire bucket. This includes Retail, Mail Order / Telephone Order and eCommerce or Card Not Present. They base that rate on the average interchange rate that they expect for that category plus a markup for themselves.

These tiers describe costs for different kinds of credit cards when processed under different kinds of circumstances. For example, a check card costs less than a consumer credit card which costs less than a business card. The method of how a credit card is processed changes which tier of Interchange is applied. For example, a swiped credit card costs less to process than one keyed into a credit card terminal.

High Risk Merchant Accounts

High Risk Merchant Accounts Business America Can Help

Business America specializes in High Risk Merchant Accounts, regardless of business type or volume. We'll get your account approved quickly, and keep it running smoothly without any volume caps. Let our staff of processing industry veterans find the solution that's right for you. We represent a number of Processors and Banks, both Domestic and International. Choose the solution that's right for your business.

Business America Specializes in High Risk Merchant Accounts. Business America specializes in direct merchant accounts with both U.S. and Offshore Banks. Direct Accounts with Professional Service.

Why a High Risk Merchant Account?

Certain business types are considered by the Visa MasterCard Associations to be "High Risk" for credit card processing. This means that acquiring banks are at a higher risk of financial loss when they underwrite these business types. In general, these merchants tend to generate high levels of chargebacks, and be more susceptible to fraud, insolvency, and, in some cases, criminal activity.

In addition to the merchant type, the merchant's processing history (ie: high chargebacks, TMF or MATCH listing) can require the services of a High Risk Merchant Account.

Finally, sales volume in itself can be considered a risk factor. In essence because every dollar in sales is potentially a dollar in chargebacks. Fast growing sales volume can require a High Risk Merchant Account.



High Risk Merchant Account or Offshore Merchant Account?

In some cases, the answer may be both. Business America works with multiple US Acquirers and Processors who can provide High Risk Merchant Accounts with domestic banks. Set-up in the US is usually quicker and less expensive in terms of high risk processing costs and reserves. Domestic High Risk Merchant Accounts tend to be more restrictive of sales volume and business types Business America's US Acquirers will underwrite merchants on the TMF / MATCH list on a case-by-case basis.

Offshore Merchant Account for High Risk

Business America works with several acquirers providing Offshore Merchant Accounts in Europe, the Caribbean, Canada, and Asia. Offshore Merchant Account set-up takes longer because V/MC regulations prohibit cross-border acquiring without a legal presence in the same jurisdiction as the underwriting bank. This means that in order to get an MID issued the merchant must form an offshore corporation in the same country as the bank. The merchant must first apply for the offshore merchant account and get an approval with a processing agreement with rates, reserves, etc. And then form an offshore corporation. Offshore Merchant Accounts have higher transaction costs and reserves, but allow more business types and unlimited sales volume.

Offshore Merchant Accounts available with banks in Europe, Asia, and the Caribbean including:
A direct merchant account with unique descriptor.
Virtual terminal API interface payment gateway.
Multi-currency options.
Settlement twice a week to your existing business bank account.
Professional support and service.

offshore merchant account, - a sales representative will contact you within 24 hours.

Applying for a High Risk Merchant Account

From the time Business America receives a high risk merchant application with the supporting documents, it takes 3-5 business days to complete underwriting (including merchant phone interview). If the application is approved, US High Risk Merchant Accounts can be boarded within 24 hours. Offshore Merchant Accounts are boarded within 10-15 business days.

To find out more call 802-868-7244 or fill out an , - a sales representative will contact you within 24 hours. All information is strictly confidential and used solely for the purpose of processing an application. It's free, and there's no obligation.