| In order to compete successfully businesses today | | | | A business is permitted to function even if it has a |
| need be able to accept payments made by credit and | | | | poor credit rating. |
| debit cards. To allow transactions using credit cards | | | | There is no penalty if it a business does a high |
| businesses must have a merchant account. But some | | | | volume of sales. |
| businesses such as coin shops, software sellers, | | | | New startup business have the chance to |
| cosmetic surgeons, insurance brokers, investment | | | | compete with older, established businesses. |
| brokers or many other businesses are considered high | | | | The analysis process that banks use to evaluate and |
| risk businesses. Because of the nature of their | | | | eventually categorize a business as a high or low risk |
| activities they cannot qualify for a regular merchant | | | | business is in fact a useful tool for businesses. They |
| account. They must use a high risk merchant account. | | | | will alert the business to the facts and potential |
| Even though high risk businesses must pay higher fees | | | | problems they must guard against in order to protect |
| for the processing of credit card payments, the high | | | | their company. Some of these problems are |
| risk merchant account offers them the ability to | | | | customers not being happy with the service or having |
| accept credit card payments. This type of account | | | | unfulfilled expectations. Other problems might be |
| offers many benefits to high risk businesses. These | | | | delivery terms not being complied with, use of |
| benefits are: | | | | fraudulent or stolen credit cards or unclear refund and |
| The business can function even when it may have | | | | return policies. Needing to use a high risk merchant |
| many cardholders wanting a refund. | | | | account forces a business to be very careful and |
| Customers can pay online, by phone or mail order. | | | | very aware the risks in its business. |
| Merchants do not have to process their credit | | | | These types of accounts do have a lot to offer a |
| card sales within a specific limited time frame. | | | | business that might otherwise not be able to function |
| Businesses may be located outside the United | | | | due to the nature and risk involved with them. Any |
| States and still accept credit cards. | | | | business owner that is having a hard time finding a |
| Business can accept credit cards denominated in a | | | | company that will process their payments may want |
| variety of currencies. | | | | to consider a high risk merchant account for their |
| Location does not prohibit the business from | | | | company. |
| accepting payments from credit cards. | | | | |