In order to process online credit card transactions, businesses are required to create a merchant account. However, obtaining an account is not always easy. Some businesses are considered high risk, making an account difficult or even impossible to obtain. Plus, with online businesses relying on credit card transactions due to their convenience – without verifying the user’s identity – fraud is a huge issue with online businesses. This makes an online business a risk to certain credit card processing companies. Learn what types of businesses are considered high risk and why a high risk merchant account may be necessary.
What is a High Risk Merchant?
A high risk merchant is an online business that experiences a high volume of transactions and therefore faces an increased risk of fraud. There are many businesses that fall under this category, but some major ones include pharmaceuticals, travel services, telemarketing, online auctions and debt services. Other businesses that may be considered high risk include computer sales, gun dealers, recreation, custom jewelry, software downloads, car rentals, pawn shops, mortgage services and insurance products.
Why is an Offshore Credit Card Processing Company Required?
Online banks and credit card processors cannot process transactions from high risk merchants. Therefore, an offshore credit card processing company is required. Companies that have a low-risk business can apply for an offshore account as well. This is a good idea if the company has exceeded the monthly volume limit on its domestic account because most offshore credit card processing companies allow an unlimited volume. In addition, offshore accounts have more lenient business guidelines. For example, some services and products may be illegal in the United States but perfectly legal elsewhere. Offshore companies also accept international forms of payment, so with these companies a business can accept money from customers located anywhere in the world.
With Allied Wallet, you can accept payment from anyone from anywhere in the world, allowing you to grow your business. See what services they offer at Alliedwallet.com.