Why High-Risk is High Reward

Are You Avoiding High-Risk Merchant Applications?

Let’s face it, the thought of pursuing high-risk merchants can prompt feelings of anxiety and exhaustion. Many banks and payment processors are reluctant to engage with these merchants, and when they do, the requirements can often feel impossible to navigate. This raises the question, "why even go down that road" knowing it entails more work and more hoops to jump through to secure that elusive approval? The answer is simple - high-risk is where the money is at. If you aren’t targeting high-risk accounts, you may be overlooking significant opportunities to enhance your monthly residual income.

Why Are High-Risk Deals So Challenging?

Before dreaming of those giant residuals’ checks, it is essential to grasp the underlying challenges. Options for high-risk merchants are limited, as reputation alone can deter many banks and processors from even considering them. Moreover, the nature of the products and services offered by these merchants often fall under stringent regulations, which can raise red flags for potential acquirers. Additionally, high-risk categories are more prone to elevated chargeback rates, further complicating acceptance. Even the application process is more cumbersome, as high-risk generally demands more stipulations from underwriting than that of low-risk submissions.

Where the Money Is At

Despite the numerous challenges associated with providing payment processing services to high-risk merchants, the rewards are undeniably substantial. High-risk merchants often face limited banking options, presenting a unique opportunity to implement higher pricing structures. Such elevated pricing is justified by the considerable effort required to secure approval and the inherent risks associated with high-risk merchants. In fact, pricing for high-risk accounts can be significantly more lucrative than that of low-risk. Agents may charge up to five times more for high-risk accounts compared to standard accounts within their portfolios. Consequently, the profitability for high-risk can exceed thousands of dollars more per month compared to a low-risk account with the same volume.

How Can You Start Securing More High-Risk Approvals?

ExpiTrans is your strategic partner in navigating the pathway to approval. While many processors shy away from high-risk, ExpiTrans has been successfully operating in this niche for over 20 years. We accept merchants that other processors may overlook or cannot accommodate. With partnerships spanning over a dozen acquirers, we are equipped to offer solutions for nearly any high-risk merchant. Our extensive experience and flexible underwriting practices enable us to maneuver past all the “red tape” typically associated with high-risk accounts. We are committed to assisting you in obtaining high-risk merchant account approvals, allowing you to maximize your earning potential.