A high risk merchant account can sound pretty intimidating, and you may be confused as to what exactly it is. High risk doesn’t necessarily mean your business model is risky; your account can be considered high risk if your volume or average transaction totals are high, or if a majority of your business is conducted online. Here are a few ways to prevent your merchant account from becoming high risk.

Strong History

One of the most effective ways to prevent your account from becoming a high risk merchant account is to maintain a well-established business with a long credit card processing history. Of course, this process takes time and a little bit of luck. Maintaining a strong credit rating and avoiding bankruptcy ensures that your account won’t become high risk.

Spread It Out

A good way to lower your risk profile is to open multiple merchant accounts. One of the primary reasons an account becomes high risk is because of a large monthly credit card transaction volume. While a large monthly sales volume seems like it should make you low risk, credit card volumes of over $25,000 are often considered high risk.

Multiple accounts disperse your monthly sales, lowering the credit card volume of each account, and minimizing the possibility being considered a high risk merchant account. Using multiple accounts also gives your business security in case you need a backup, or if one of your accounts becomes high risk.

Low Ticket Prices

Another great way to prevent your merchant account from becoming high risk is to lower your ticket price. If your average sales transaction is high, say over $500 per transaction, your account may be tagged as high risk. By offering lower-priced items, you also lower the chances of becoming a high risk merchant account.

Make Sales, Not Subscriptions

Subscription based services like dating websites, magazines, or music streaming sites are great for consumers. They offer needed resources at affordable monthly payments. However, offering these services can push your merchant account into becoming high risk.

Secure Processing

Finally, one of the best ways to keep your account from becoming high risk is to use a payment service provider that hosts your payment page. When a reputable provider processes your payments on their payment site, they remove much of the risk of online credit card sales. Secure processing gives you the best option to avoid becoming a high risk merchant account.

Choose The Best

Allied Wallet provides online payment options for e-commerce businesses big and small. We offer secure and safe payment gateways at affordable prices. Contact us today to discuss your merchant account and how you can avoid becoming high risk.