How to choose the right High Risk Payment Gateway to protect and scale your business

Starting a business within a high-risk environment means navigating a set of circumstances that are quite different from those facing businesses in a lower-risk category. Essentially, you have more active chargeback issues, a heightened risk of product and service abuse and fraud, increased scrutiny from Banks and regulatory bodies, and the potential for your best high risk merchant account to be shut down (frozen).

Choosing the best high risk Merchant Account payment gateway should not only be about the way you process payments; it is also about protecting your bottom line and giving you the ability to grow as a business over time. Here are some factors to consider when finding a high-risk Merchant Account Payment Gateway that is the right fit for your company.

Know the Business Risks Associated With Your Business

Before searching for a high risk payment gateway, be sure to take an assessment of the reasons why your company is categorized as high risk. Standard factors that are listed as "high risk" include those that experience a high chargeback ratio, operate under subscription programs, transact with customers outside the USA, or conduct business in highly regulated industries. If you have a clear understanding of what your true "business risk profile" is, you will be able to find a payment gateway that has been built and optimized to accommodate your unique business model rather than to restrict it.

Verify the Compliance and Security of Payment Gateway Providers

Your chosen gateway needs to adhere to both PCI-DSS compliance and provide encryption/tokenization. If your company is handling international business, check for compliance with local regulations and data protection legislation. The more secure a payment environment is, the more customer confidence will be instilled, thereby reducing the risk of legal/financial exposure to you or your customers.

Verify All Payment Methods Available and Worldwide Acceptance

The ideal high-risk payment gateway provider should be able to accept a wide variety of payment methods, including, but not limited to, credit, debit, digital wallets, and alternative payment types. Additionally, if your company is planning on expanding into other parts of the world, verify that your payment gateway provider supports multi-currency processing and has relationships with international acquiring banks. The more options you can provide to your customers, the more likely you are to reach a greater number of customers with your products/services, without experiencing roadblocks in your operations.

Assess the Approval Rate of Payment Gateway Providers and Their Reliability

Approval rates are extremely important for any business that wants to increase revenue. Too many gateways are rejecting high-risk transactions unnecessarily, resulting in lost sales opportunities. Always look for a payment gateway provider that specializes in serving high-risk merchants and has established relationships with several different acquirers. Additionally, assess the uptime and reliability of payment gateways; prolonged downtimes can result in a loss of customer trust, which will hurt your cash flow.

Take the time to check the price and contract terms for your payment gateway

Most high risk gateways will have higher fees; however, it is important that the Gateway Pricing is transparent. Therefore, it is essential to review: the cost of setting up your account and transacting, the transaction rates charged for each transaction, rolling reserves that you will be required to maintain, chargeback fees that may occur, and how long you can remain locked into a contract if you do not find a suitable provider later on. Avoid working with a supplier that has hidden fees or long lock-in periods.

Focus on Excellent Customer Support & Account Stability

A good level of customer support can greatly improve your experience as a merchant, especially when there is a dispute or technical issue. Look for providers that provide dedicated account managers and 24/7 customer support. In addition to having a high quality of customer support, it is also important to partner with a provider that has a strong level of experience in handling high-risk transactions, so your account will not suddenly be frozen or shut down.

Final Thoughts

When selecting a high risk payment gateway, consider how it will impact your business's security and scalability. Ensure that you choose a provider that provides robust fraud protections, is compliant with industry regulations, offers worldwide access to your payment needs through transparency of pricing, and provides comprehensive levels of support. Your payment gateway partner should not just process your payments; they should also help you grow and succeed as a merchant despite the challenges that you face in your industry.