Any business venture will have potential risks and issues that are just a part of being within that industry. But when you include other variables like fraud, payments processes, and more, you can soon find your business has been labeled a high-risk company.
However, despite the negative connotations of those two words, being a high-risk business doesn’t have to be as difficult as you may think. It’s all a matter of working alongside the right payments merchant company, re-assessing what matters most, and accepting some things high-risk companies are expected to deal with.
High risk doesn’t always mean dangerous or controversial
While it’s true that many businesses listed as high-risk can be in the realm of adult entertainment, debt collecting, and cannabis-related products and oils, many companies in prevalent industries are also labeled as high-risk.
Travel companies, furniture retail outlets, online dating sites, and electronics stores are all considered high-risk business ventures these days.
Finding a high-risk payments merchant isn’t as difficult as you think
Is your business high risk? If the answer is yes then you’re probably already aware of the problems many companies have faced when looking for a trustworthy and reputable payments processor. Fortunately, with a little research and some effort, you’ll be able to find the perfect company to help you stay on track, achieve your goals, and make your business stand out.
And for a Merchants Services company that knows how to guide businesses through these murky waters, Humboldt Merchant Services has been empowering high-risk businesses and processing simple, safe payments since 1992.
Having a spotless record won’t change your high-risk listing
While new companies looking to gain momentum in unproven fields of business will struggle to escape the high-risk label, it isn’t just the new kids on the block that need to be careful here.
Unfortunately, many businesses in high-risk industries can keep a flawless record that lasts for decades. Yet, due to their business, that high-risk label won’t be going anywhere.
There are also other variables to consider. For instance, the risk associated with an entire industry can fluctuate depending on the overall failures and successes of a collective amount of companies.
A high transaction rate can make you a high-risk business
As we’ve already mentioned, while a good reputation and spotless record won’t stop your company from being tarnished with the high-risk brush, your transaction rate can also affect how risky you’re perceived.
Companies that take in around $20,000 worth of monthly transactions can expect to be called high-risk. This is due to how merchants broadly perceive your industry at that specific time and not so much your business alone.
But what are those broad perceptions? They can be anything from the expected potential for fraud, the estimated chargebacks an industry deals with, and other variables such as international delivery periods that take longer than standard ones.
