Has your business been classified as a high risk business and then been prohibited, restricted, or blacklisted from merchant account processing sites, effectively being refused the ability to offer your customers credit card usage? Customers think that cash-only businesses are sketchy, shady, and usually involved in criminal activities. You need to offer credit cards to provide a sense of legitimacy. There are solutions for different high risk businesses. There are merchant accounts which categorize high risk businesses into different tiers of risk, and then individually determine the requirements for processing availability. Most business can be accepted and approved even as early as the next day! What are the tiers?
The first tier is the lowest risk with the highest approval rate and includes businesses such as websites that offer physical goods, debt collection agencies, loan modification businesses, hosting providers, and herbal shops.
The middle tier is a moderate risk business with lower approval rates that require a case-by-case approval. It’s for businesses like nutraceuticals.
The third tier is the highest risk business with the lowest approval rates and is for businesses like timeshare telemarketing and ewallets.
High sales volumes and the market’s association with fraud can also push your business into high risk territory. Marijuana dispensaries are an example of this. Although legal in Colorado and Washington, they’re classified as high risk businesses because they’re illegal on a federal level. It’s a tangled mess that regulators and legislators are just beginning to sort out, but there’s always a processing solution available.