Considering a high risk merchant account for your business in India? As an online seller or other high risk industry, you may struggle to get approved for traditional payment processing. That’s where understanding high risk merchant accounts becomes vital.
This complete guide will teach you everything you need to know, from defining high risk merchant accounts to choosing the best providers in India.
What is a High Risk Merchant Account?
A high risk merchant account provides payment processing services tailored specifically for high risk businesses.
High risk merchant accounts have features like:
- Higher processing limits
- Enhanced security and fraud tools
- Dedicated account management
Businesses may be considered high risk if they have a higher likelihood of:
- Fraud attempts
- Changes in businessstability
- Financial losses
Common high risk industries include:
- Online gambling
- Adult content
- Supplements and nutraceuticals
- Cryptocurrency exchanges
Because these businesses can pose larger risks, many traditional banks avoid providing accounts. That’s where high risk providers step in to meet the need.
Benefits of High Risk Merchant Accounts
The right high risk merchant account provides specialized services that facilitate business growth. Benefits include:
Access to Payment Processing highrisk payment gateway
Most importantly, a high risk merchant account enables acceptance of major credit cards and digital payments. Without these facilities, developing an online business becomes extremely difficult.
Added Security Featureshigh risk payment
High risk providers implement specialized fraud prevention tools and AI monitoring to watch for suspicious transactions. This protects the business from threats.
Improved Approval Odds
While traditional processors avoid uncertainty, high risk providers have expertise evaluating unique business cases. This improves the chances a high risk business gets approved for high risk payment account.
Contrary to popular belief, high risk merchant accounts can actually cost less in fees compared to standard options. Leading providers are able to optimize rates.
Top High Risk Merchant Account Providers in India
Choosing from the many providers in India comes down to factors like reliability, security, and customer service. Here are five top options:
PaySpace tops the list as a dedicated high risk processing expert. All client accounts come with customized fraud prevention plus chargeback protection. Their approval rate also outpaces competitors.
InstaReM is a fast-growing online payment enabler serving both low and high risk accounts. They provide currency exchange and global payment options.
A globally recognized leader, PayPal offers advanced fraud monitoring. Their user-friendly platform enables rapid scaling to new markets.
CCAvenue brings two decades of digital payments experience in India. They offer merchants robust API integration options to enable custom checkout experiences.
Known for lightning fast payouts, Cashfree provides seamless reconciliation using their proprietary payment gateway.
When comparing providers, be sure to confirm:
- Reliable uptime – Choose players with proven infrastructure
- Security standards – Check for PCI DSS and data encryption
- Chargeback rates – Lower ratios indicate better protection
- Customer service – Support response times and availability
- Developer docs – Assess resources for custom integration
Steps to Getting Approved for a High Risk Merchant Account
Gaining approval requires presenting your business in the best possible light and partnering with specialists. Follow these steps when applying:
Choose an Established Provider for payment gateway tech
Work with a processor that specializes in your particular industry with a track record of approvals. Having an expert support your application strengthens success odds.
Gather Necessary Documents
Collect details like ownership information, projected processing volumes, average order values, website data, and policies. Thorough preparation demonstrates legitimacy.
Highlight Security and Fraud Prevention to avoid high risk payment
Emphasize existing measures that protect your business, showing steps you take to avoid problems proactively. Discuss plans to enhance efforts further.
Outline Business Processes
Document internal systems, operations standards, product/service guidelines, and customer management workflows. Detail promotes trust.
Prepare an Action Plan
If the initial application faces challenges, prepare an action plan for increasing eligibility on resubmission. Show a commitment to transparency and continuous improvement.
With attentive customer service and the right risk mitigation approach, many high risk merchants can get approved on their first or second attempt.
The Cost of High Risk Merchant Accounts
Pricing for high risk merchant accounts has three core components:
Account fees – Monthly and annual charges
Payment processing rates – Charged as percentage of transaction value or fixed cost per sale
Non-sufficient funds (NSF) fees – Levied if sales fund payouts
Rates vary based on provider type and perceived risk factors. Costs generally fall between 3% to 6% of transaction value for online and card-not-present sales. Providers may also implement tiered pricing based on processing volume or average order value.
Upfront application, setup and annual PCI compliance fees generally range from Rs 5000 to Rs 35000. NSF fees typically start around Rs 800.
Select providers also take a percentage of revenue as collateral with high rolling reserves. These contingencies allow absorbing losses in case of problems. Reserves are slowly released after demonstrating responsible operations for 6 to 12 months.
Tip: Negotiate pricing during onboarding or renewal periods when you have maximum leverage. Hit volume tiers reliably to qualify for rate reductions.
Ensuring High Risk Merchant Account Success
Once approved, working diligently to reduce risk makes good financial sense. Prioritize security and compliance.
Fraud Prevention Best Practices
Actively manage fraud with steps like:
- Screen orders with negative lists
- Analyze transaction histories
- Confirm identities for large purchases
- Delay shipping expensive goods until payments clear
Meet Data Protection Standards
Follow security guidelines like installing firewalls or HTTPS web access. Conduct periodic vulnerability scans. Maintain compliance certifications.
Optimize Dispute Handling
Document detailed evidence and timeline records for every dispute filed. Communicate promptly and courteously with issuing banks.
Review Statements Closely
Carefully audit statements to identify fees suggesting problematic transactions. Watch for patterns requiring intervention.
Stay Within Approved Scope
Carefully manage account use to adhere to approved business activities, average order values and monthly volumes. Ask before adjusting limits.
Diligence pays off by keeping accounts healthy and maintaining competitive processing rates!highrisk merchant account
Ready to Choose Your High Risk Merchant Account Provider?
Now that you know the critical considerations for securing a high risk merchant account in India & credit card processing, the final step lies in selecting your high risk payment gatewaypayment partner.
Assess providers in your niche industry based on previous success supporting similar business cases. Choose operations with solid reputations, robust feature sets, and expertise tailored specifically to your needs.
With an experienced high risk account manager guiding your onboarding process, gaining that crucial payment infrastructure becomes readily achievable. You can focus fully on profitably growing your online venture!