How to Set Up a High Risk Merchant Account

Your website has been established, and all things seem favorable for immediate sales of your offered product or service. It is obvious, that a good number of people today will carry a credit card in their pocket rather than cash. As with any merchant account, the high risk merchant account can seem simple to set up or rather complex, depending on any previous knowledge you have concerning merchant accounts.

Regardless of the type of merchant account your business requires, low or high risk, a lot of the information required will be the same. The types of documentation will vary depending on the service or product you provide. If you are doing an online business, you will almost always need to establish a high risk merchant account. The basic questions will be asked; such as name and address, the location of your business if different from your personal address, documentation of your business chain account, and a voided check. Other required items would be your license to run the business, copies of your return and exchange policy, a driver’s license and a social security number.  Other items may also be requested.

Before continuing, allow me to add a word of caution. Do your homework in regard to opening a high risk merchant account. Due to the cost involved and the range of additional charges be sure you are content with the options offered by your chosen merchant. Once opened, a high risk merchant account can be a difficult situation to change.

Most high risk merchant accounts enable the businessman to a multicurrency account. This type of account allows you to display and charge clientele in their currency but for you to be paid in the currency of your choice. With online businesses reaching nearly every corner of the globe, this is an excellent provision.

Many high risk merchant account banks and lenders will gladly walk you through the set-up process of obtaining your high risk merchant account if that is your desire. Unlike, simple merchant accounts drawn on a local bank, be prepared to pay set-up fees, some of which can be quite high. There can also possibly ongoing monthly fees as well as fees based solely on each transaction rendered through the account. On occasion, a certain amount of your sales could be held in reserve by your credit card processor against any future chargeback’s or disputes. These reserves are sometimes held for about six months and then released to you a month at a time, allowing the processor a six month reserve at any one time. Always ask about online access of your transactions. This will give you an at a glance insight to how things are going with your online business.