Running any business these days more or less requires that you give your customers the option of paying with credit or debit cards.
If you’re an e Commerce entrepreneur, credit/debit cards are just about your option for getting paid.
If you’re considering a particular provider, check their website or contact them directly to see if they find your business to be high-risk.
Here are the most common types of high-risk businesses: If you’ve been reading this so far and you’ve determined that your business is in the high-risk category, it’s time to face this harsh reality: merchant accounts for high-risk businesses inevitably cost more than those for non-high-risk ones. You’ll pay more in both account fees and processing charges, and you’ll probably be stuck in longer contracts as well.While most non-high-risk businesses have some ability to negotiate the length of their contract terms, the industry average is around three years for the initial term, with an automatic renewal clause that extends it for one-year periods after that.These lengthy contracts have been very unpopular with merchants, and the trend within the industry is moving more toward month-to-month agreements so you can cancel your account at any time without incurring a penalty.If that’s not bad enough, you might even have a liquidated damages clause in your contract that raises the price of breaking it even further.While the processing industry is generally moving more toward lower monthly and annual account fees, you won’t be so lucky as a high-risk merchant.