High-Risk Merchant Account
If you’re looking to add more payment options for your European customers, you’ve probably come across a variety of payment services and products that could drive your business growth. While you want to start with a well-serviced merchant account, not every European merchant acquiring bank and merchant account service provider might be willing to accept you as a merchant due to the high risks inherent to the nature of your business.
Don’t fret, you’ve come to the right place – high-risk businesses have a bigger chance of getting a merchant account in Europe compared to non-European countries and our team is more than happy to support you in this journey.
For now, read on to learn about the reasons a merchant might be labelled as high-risk, which merchant account service providers are prepared to offer and maintain a high-risk merchant account and how to open one.
Merchant account service providers and merchant account acquiring banks regularly evaluate the level of risks pertaining to new and existing merchants. If your business currently falls within the category of high-risk or low-risk merchants, you should note that in the future the risk status can change if your business evolves (e.g. expands and starts accepting international payments).
If the risk increases, you can be required to take appropriate action (e.g. to set a reserve of funds or provide more information). Your merchant account might be closed if your provider doesn’t cater to high-risk merchants or if the risk associated with your business is too high.
Make sure your business credit score is acceptable (if needed, find ways to improve it prior to submitting an application)
Research and compare merchant account service providers and merchant acquiring banks to ensure they’re likely to meet your business needs
Eliminate all the providers that might not be licensed in the region or country you’re working in as compliance is of paramount importance
Shortlist only the providers familiar with the area of your business and are most likely to accept your products and services and the level of inherent risks
Make sure you’re prepared to meet all the requirements and pay higher fees specified by the selected providers
To open a high-risk merchant account, you first need to look at specific criteria, prepare required documents and fill out a general application usually available on the provider’s website.
To open a high-risk merchant account, you’ll first have to go through the regular merchant account opening process where the level of risk will be assessed, and your business will be categorised accordingly. Providers often use AI-powered decision-making tools to assess applications, which makes their decisions as fair and as accurate as possible.
In modern times, every business is expected to accept debit and credit cards as well as other forms of electronic payments in person and online. In fact, it’s a crucial factor in increasing and sustaining sales as many customers tend to stop carrying paper money with them and cashless transactions are preferred globally. If you’re willing to add this payment option to your payments ecosystem, a merchant account will be indispensable.
To set up a merchant account, you can sign an agreement directly with a merchant acquiring bank, or you can find a merchant account service provider who will offer numerous solutions, including harmonisation and coordination of multiple merchant accounts spread across different countries.
First and foremost, your company must be registered as a European company with a physical address in Europe and display evidence that it possesses enough capital to support the processing volume.
