The high risk online payment processing and merchant service landscape has changed dramatically since I started in the industry in 2000 and even in the last 2 years. We know that many verticals such as adult, mlm, free trial, nutra, gaming, travel clubs and a group of other services and products are put in the high risk merchant pile. Merchant accounts are easily established for this client base, but it’s important to work with someone who understands the nature of the business to avoid future volume caps, chargeback breaches or terminations.
This has been the standard high risk merchant account practice. Today, we are seeing a surge of merchants that should be considered low risk being “asked nicely to please leave”. This includes dating websites with low chargebacks, memberships and subscription services with standard recurring practices, skin care products who charge a one-time fee and many other categories. These merchants are left dumbfounded because they have been working with the same bank since they started and are not used to being tagged high risk.
What should you do if you get asked to leave by your merchant bank provider.
Don’t Panic and start filling out a bunch of merchant account application forms online. Your profile will be spammed to a ton of agents who will have you fill out an application and then send it to all the merchant banks they get commissions from.
The banks will see the file come across their desk numerous times and get notifications that the file is being shopped. This means two things.
1. You are desperate.
2. You are in trouble.
= We don’t want to place them with our bank.
Rather, find an expert who will help come up with a migration plan to move you from your current payment processor to a new stable merchant account relationship.