High Risk Payment Gateway
As a high-risk payment gateway partner, Bankcard provides all the services your business may need to accept payments, including access to advanced capabilities that will assist in your company’s growth.
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A payment gateway is the service tool that approves or declines any transaction via an online transaction to come into a business. For example, a high-risk payment gateway allows customers to submit their credit card information and then safely pass the sensitive financial data from the customer, the business, the company, and the bank.
High-risk payment gateways are two types of merchant account services available for companies that accept credit cards: low-risk or high-risk. The type you need depends on your company’s risk level. In general, a low-risk merchant account will be cheaper than a high-risk one because it has fewer liability protections in place if there’s an error made during processing.
Low-risk payment gateways are not available for all companies; some businesses can’t get a low-risk account because of their industry type. For example, suppose you’re in the adult entertainment business (including webcam services) or involved in any product or service that is considered high risk. In that case, your business will have to use a high-risk merchant account.
If an online store accepts credit cards, it needs to have a high-risk payment gateway.
The fee structure for high-risk account services varies by company and industry type. They are higher than low-risk accounts because they provide more liability protection should something go wrong during the transaction process. And just like any other business service, you can expect to pay an enrollment fee and a monthly fee to use a merchant account. There will also likely be additional fees for gateway services.
When checking out, cardholder account information is encrypted using an SSL connection. The file sends through a secure link to the merchant’s gateway application and prevents outside attacks from occurring.
When a customer pays at a payment gateway, their card information is encrypted and sent to the bank through another secure SSL connection for authorization.
An authorization request is sent to the card issuer of a Visa or MasterCard. An American Express and Discover (including JCB) transaction is processed by that company, acting as processor and customer card issuer.
The card issuing bank determines whether the transaction is approved or denied. This response is sent to the customer’s shopping cart for approval or denial with a unique transaction ID.
Once the payment has been completed, merchants are given access to all of their pending authorizations. Merchants can make edits such as adding tips or voiding charges before finalizing them through a nightly process known as batching.
High-risk industries have irregular, high-ticket sales and numerous chargebacks or work in highly controlled industries or the rules and regulations are unclear at best. This might be caused by poor credit ratings, being outside the United States, or simply not meeting specific standards.
Here are a few examples:
Tech support companies are high-risk merchants because they have irregular high-ticket sales, excessive chargebacks, and work in highly regulated industries, or the rules and regulations are unclear. As a result, banks refuse to give them merchant accounts unless they use a payment gateway designed specifically for this type of business.
Technically speaking, there’s no law against selling cigarettes online or through mail order, but it is illegal in many places because the buyer must be at least 18 years old. This means that any company who wants to sell tobacco products must register as an adult business with their local authority before starting up, which can sometimes take months or even years depending on how much red tape they have to cut through.
Offshore business owners may not be able to satisfy all customers or maintain long term relationships because they don’t have any power over how much they want to charge people for goods and services, which can result in price gouging if there is an emergency such as an earthquake or natural disaster where high demand for goods and services triggers high pricing.
Call center agents must handle high volumes of calls and provide quality customer service while adhering to the company’s policies and procedures to prevent fraud or other illegal activities from happening through their call center platform. These high-risk factors make call centers one of the most challenging customer care environments today.
The high-risk industry of travel agencies is a high-risk for payments because this industry attracts a high number of commercial disputes and legal restrictions.
Health supplements are high risk because supplements can be used for medicinal purposes or recreational use. Many health supplement companies out there make claims about their product, but most of the time, these claims cannot be backed up with any scientific evidence. They can also cause side effects such as nausea, vomiting, headache, diarrhea, etc., leading to hospitalization if it goes untreated. Drugs like steroids are high risk, too, because they carry serious health risks, including an increased chance of stroke or heart attack, high blood pressure, heart disease, and kidney problems.
This high-risk industry has a high number of commercial disputes and legal restrictions because it attracts so many players who have an opportunity to commit fraud or other crimes. Online gaming is high risk because it can be used for illegal activities like money laundering, drug trafficking, and tax evasion.
Debt collectors collect money from delinquent accounts on behalf of creditors through phone calls, letters, emails, text messages, etc. Creditors may include banks that provide credit cards or lines of credit to consumers who then fail to repay their debts promptly; these companies would be considered corporate entities rather than individual persons. In addition, debtors often reside in different countries from their creditors, making high-risk debt collection a global industry.
There are two types of high-risk debt collectors: first-party and third-party high-risk debt collection companies. First-party high-risk debt collectors collect on their accounts and may charge a high interest rate. Third-party high-risk debt collectors generally operate as a subsidiary of a creditor or creditors. Therefore, they have no high-interest rates attached to the debts they purchase from the creditor.
In high-risk transactions, high-risk debt collectors collect money from delinquent accounts on behalf of creditors using high-risk methods such as phone calls, letters, emails, text messages, etc.
Pharmacies are high-risk because they handle prescriptions. They also have to worry about credit card fraud, one of the most common types of online crime.
The high risk for pharmacies comes from handling high-risk medication and prescription fraud.
Still, these can be mitigated with several security measures in place: such as requiring customers to show identification and sign for their purchase when using a debit or credit card in-store; storing medications under lock and key; protecting against malware by installing antivirus software on computers used to process transactions; monitoring access points like WiFi networks, USB ports, Bluetooth connections and more.
It’s a high-risk industry because high ticket items can be high-value and high-cost. That means that the financial institution has a lot of money on the line if something goes wrong. So they have to ensure that they are providing a sufficient level of protection for themselves, their customers, and other third parties involved in the transaction.
The high-risk nature of high ticket items stems from the high volumes of transactions taking place, making it harder to maintain high levels of security. The high volume combined with increased risk usually drives organizations to seek technological solutions to help with these challenges.
When cardholders aren’t present to sign for their purchases, merchants have a more challenging time verifying customers are who they claim to be. In addition, due to the nature of adult websites, banks may not want to process payments for businesses that deal with controversial content.
Payday loan companies will offer a short-term cash advance for low-interest rates on the condition that the money is repaid in full at some point within a limited time frame (typically two weeks). The problem with these loans is that they are not regulated by governments and often have hidden fees or high-interest rates attached to them, making it difficult for borrowers to repay their debt. As such, many payday loan companies charge exorbitant fees and high interest rates, which makes this industry high-risk.
A high-risk payment gateway offers a few advantages.
One of the benefits is that it is safer. High-risk payment gateway uses several types of security measures to guarantee the safety of the merchant’s data, including firewalls and SSL. This high-risk payment gateway also helps with fraud detection, which reduces the high level of chargebacks when merchants are not at high risk.
High-risk payment gateways also help with international payments, making it easier for customers in different countries to make purchases with less hassle, which requires less involvement than other gateways that use more complicated processes.
Ecommerce sites are constantly evolving, and the high-risk payment gateway is an essential component for any e-commerce site. These gateways ensure high security for your customers while also providing high performance.
A high-risk payment gateway ensures that your customer data stays safe while you enjoy fast processing speeds with no delays or downtime. Although the cost of this service may be higher than other options, it’s well worth the investment because it will save you money in lost business opportunities by avoiding transaction errors.
The high-risk payment gateway works by splitting your customers into high and low-risk categories. This allows you to use a single interface to design rules and apply them to high or low-risk transactions.
In addition, the high-risk payment gateway acts as an intermediary between your site and the payment processor, it can generate reports on either side for improved customer service.
There are three main factors to consider when choosing a payment gateway provider: processing fees, the gateway’s countries, and whether they can process mobile payments. But, of course, these factors also depend on your business.
First, you’ll need to evaluate your business for what kind of payment gateway it needs. This includes looking at how much money is processed each month (the bigger the company, the higher the processing fees).
Second, you’ll need to look at what countries your company operates in – if you’re targeting customers in more than one country or selling internationally, make sure that your payment service provider has global coverage. Lastly, if you offer mobile payments (such as Apple Pay), ensure that this is included in your payment gateway provider’s services.
Often, businesses can be charged a discount rate when they process over a certain amount of money in a month. This is an incentive for companies to process more money each month with the same payment service provider. If this fee applies to you, make sure that the discount rate isn’t too high: you should be able to process enough money in a month to make up for the discount rate not to pay more than you would with other payment service providers.
Next, compare fees that each payment service provider charges. You can do this by looking at how much they charge per transaction and their monthly fee (or if there is no monthly fee).
Once you’ve evaluated these factors, if you’re still having trouble choosing between several payment service providers, then look at what countries they operate in. Often, you can find a great gateway provider in your home country that might be able to process the money in foreign currencies more cheaply than other services. If this is not the case, you’ll need to decide based on processing fees. If one is significantly lower than the others, it might be worth it to sacrifice some countries for a lower cost.
Before choosing your payment gateway provider, one final consideration is whether they offer mobile payments (such as Apple Pay or Google Wallet). If you accept mobile payments, you should make sure that your payment service provider can process them.
For more information on payment gateways, talk to its customer support team about what kind of monthly fees are involved, which countries are supported, and whether they offer mobile payments.
To obtain a high-risk payment gateway, you need a high-risk merchant account. For most high-risk accounts, banks will require you to have a high-risk SSL certificate for your site with high-risk encryption. When setting yourself up as a high-risk merchant, having a high-risk 3D verification system with high-risk customer authentication may also be necessary. In most cases, high-risk credit card processors charge high rates for processing high-risk transactions.
As a high-risk payment gateway partner, Bankcard provides all the services your business may need to accept payments, including access to advanced capabilities that assist your company’s growth. This lowers attrition and increases recurring revenue for your customers while also providing the tools you need to run your businesses successfully.
Enable users to pay for purchases online, in-store, using self-service and mobile payments. The platform will support EMV as well as contactless options.
We integrate with 200+ processors, 125+ shopping carts, and a wide variety of payment devices. We support whatever your merchants want to use!
From a single account, merchants may easily manage all of their payment processing activities. In addition, merchants may utilize various services to improve transaction management, including processing payments and generating reports on all of this activity in real-time.
Manage multiple MIDs on a single gateway account while consolidating reporting, organizing products, and more.
With tokenization, you can reuse cardholder data from previous transactions without having to store or secure it. As a result, your customers won’t have to enter their information again, and the payment will still be processed immediately—all while keeping your business safe and secure.
Get a single view of data across channels to help your business’s merchants get the most out of their customer data.
Safely store and use tokenized cardholder data from prior transactions, which is critical for businesses with recurring revenue models.
Automatic Card Updater:
Maintains a complete history of payments made by authorized users and supports seamless synchronization with card-on-file data.
Customers may pay invoices by visiting the merchants’ websites and making a few clicks.
Provides enhanced protection against rule-based parameters in fraudulent transactions.
iProcess Mobile Payments:
With turnkey mobile apps for Apple and Android, merchants may accept EMV card payments on a phone or tablet.
QuickBooks merchants can use this feature to process transactions, create accounting entries, and designate payments as completed right in the program.
Automatic Level 3 Processing:
Level III fees are automatically applied to all CNP transactions for merchants who use the Enhanced Data service.
When it comes to payment processing, P2PE is the most secure and prosperous encryption technique available, ensuring that cardholder information is never exposed during a transaction.
Instant and secure payment terminal key injection at the point of sale with a low, cost-effective alternative.
Manage your payment devices from any location, including remote firmware updates required for security or continued EMV compliance
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Bankcard Connect integrates seamlessly with ISV software to simplify payment processing for merchants: any payment type, on any device, anywhere.
Bankcard integrates with over 99% of the tools you are already using, including popular accounting software and e-commerce apps, regardless of your industry. Our payment services were designed to be adaptable to provide seamless integrations for our customers.
Paid Memberships Pro
911 Software, Inc.
Aldelo Systems, Inc.
Applied Micro Technology
Advanced Retail Management Solutions (ARMs)
Data Business Systems
Datacap Systems, Inc.
Epicor (CRS, NSB)
Gateway Ticketing Systems
Main Street Softworks
MBS Textbook Exchange
/n Software, Inc.
RATEX Business Solutions
Retail Data Systems
RTL Payment Systems
Sicom Systems, Inc.
Tender Retail Systems
The Software Mills
Total Computing Solutions
TouchNet Information Systems
XProtean, Inc. (C-Payment Software)
Vista Entertainment Systems
911 Software, Inc.
Data Business Systems
Datacap Systems, Inc.
Main Street Softworks
Menusoft Systems Corp.
Midnite Express, Inc.
/n Software Inc.
Sicom Systems, Inc.
XProtean, Inc. (C-Payment Software)
Elavon (previously Southern DataComm and Global Card Services)
Fiscal Systems, Inc.
Main Street Softworks
VeriFone Ruby System
911 Software, Inc.
Hotel Software Systems
Government organizations face a growing need for secure payment processing services while managing highly specific needs for content management and security.
We can work with popular technology products government agencies prefer, like Ciber and Cubic, to create an integrated solution that meets all your needs for processing payments, managing information, and more.
Instant everything. Amazing technology.
Friendly, US-based support from our headquarters in Michigan.
Regardless of your industry, we can help you get approved for a high-risk merchant account.
The industries we accept for high risk merchant accounts include, but are not limited to the below industries.
Bankcard can provide merchant accounts to customers in the below countries. Kindly note that many payment solutions are regulated based on location.
Being a start-up business will not hinder a business from getting approved for a merchant account. While having a processing history helps your likelihood of getting approved, the lack of processing will not necessarily stop you from getting an approval. Consult an experienced Account Executive today to learn more.
There are never guarantees when it comes to the approval of a merchant account. However, we do work with merchants that have low credit scores. Reach out to an Account Executive today for a consultation.
If you’re a United States citizen applying for a merchant account for a United States registered business, a social security number is required.
A merchant account can be labeled high risk for many reasons. You can be labeled as such due to high average tickets, being in an industry that historically has high chargebacks, or an industry that tier one banks do not support.
To apply for a high-risk merchant account, you need to complete our pre-qualification form and upload all required documentation. Once the pre-qualification is complete your Account Executive will locate the best placement for your account, and send you a final agreement. Once that final agreement is signed, underwriting will complete a full package review for approval.
There is no fee to apply for a merchant services account with Bankcard. However, If you get approved with us there may be a small setup fee for your gateway account.
Square, Stripe, and Paypal are all payment facilitators and do not accept high-risk merchant accounts. Signing up with Bankcard gives you a direct merchant relationship with a sponsor bank. The approval process requires more documentation, but you’re at a significantly lower risk of getting terminated.
This depends upon how quickly you, the merchant, completes our pre-qualification form. Once we have all of your documentation, we get to work. We can typically locate placement for your merchant services account in 48 hours.
Once you get an approval, you’ll be able to accept credit card payments within 24 business hours.
Depending upon the program, you will receive your funds anywhere from 24 to 72 hours after the batch is settled.
The industry type is a major determining factor when it comes to risk levels of merchant services. But, other factors such as credit, card-present vs not present, and chargeback ratios can also push an account into the high-risk category as well.
Your legal business name should match the business name on the state business registration or licensure. However, if you are a sole proprietor, your name would be the legal business name.
If you’re not sure how much processing you’ll do, we recommend applying for $5,000 to $10,000 monthly. You don’t need to hit that number each month, but if you’re close to going over, reach out to your Account Executive for assistance.
Your average transaction amount should be the average of all transactions you would accept with your merchant account. Your maximum transaction should be the anticipated maximum amount accepted in one transaction. If you attempt to process a transaction that is higher than the maximum amount provided, additional proof of purchase may be requested.
You may provide personal bank statements in lieu of bank statements if your business bank account is new or does not have any activity.
If you’re applying for a merchant account for ecommerce processing you will need a fully functional website with products or services listed with associated pricing.
Yes, a credit check is required in order to obtain a high-risk merchant account. Once a final agreement is signed, a hard credit pull is done. Credit scores are taken into consideration when underwriting reviews a full application for merchant services.
If you’re a United States citizen applying for a merchant account for a business registered in the United States, your social security number will be required to apply.
The first step to applying for a high-risk merchant account is completing the pre-qualification form. Three months bank statements, three months processing statements (if applicable), a voided check or bank letter, and driver’s license or passport will be required to apply.
If your business does not utilize checks, we can accept a bank letter that includes your full account and routing number as well as the business or account holder’s name. The letter should be on bank letterhead, be dated within the last 30 days, and be signed by a bank representative.
If you don’t have three months of business bank statements, don’t fret. We can accept three months’ personal bank statements from a business owner, or director.
Bank statements show a lot about a prospective merchant, namely, processing activity, and the average monthly ending balance. If a merchant is currently processing, we want to know why they’re switching, if we know a merchant’s pain points we can find better solutions for their needs. The average monthly ending balance is also relevant to show financial stability within the business as well as validating the monthly volume requested.
If a merchant is currently processing credit card payments and successfully managing a merchant account this can increase the likelihood of getting approved. Some payment facilitators such as Paypal, Stripe, and Square might not supply monthly processing statements. Underwriting may request login credentials so they can get an overview of the processing activities.
For in-person retail card acceptance, Bankcard can provide equipment that will arrive programmed and ready to accept payments. Discuss your equipment options with your experienced Account Executive.
Here at Bankcard, we do offer our own gateway solution that’s exclusive to merchants that sign up with us. Of course, if there’s a gateway you prefer we are willing to work with you as long as integration is possible. Please reach out to your dedicated Account Executive for details.
Bankcard integrates with NMI, Authorize.net, and more. For specific gateway integration questions reach out to an experienced Account Executive.
Your merchant account will be set up to accept Mastercard, Visa, American Express, Discover, and ATM cards.
Load balancing is the strategy of spreading transactions over more than one MID. It’s not necessary for all high-risk accounts, but can be considered as a way to manage chargeback ratios with high-risk merchants.
Not to worry, this number can be increased as needed. However, the bank underwriting your merchant account needs to be aware of the expected monthly volume to ensure they have capacity available for all merchants processing with that bank.
If you go over by a small amount you might be asked for a copy of the invoice or receipt. However, if you go over the monthly limit by a large amount there is a chance your excess funds might be held temporarily.
When it comes to high-risk accounts, banks ideally want chargeback ratios below the 3% threshold. If you can provide long term processing history the bank may take this into consideration. Lower chargeback ratios are ideal. Consult your knowledgeable Account Executive for assistance in lowering your chargeback ratio.
Rolling reserves are a way to financially protect the processing bank from potential losses from chargebacks or refunds. Not all high-risk merchant accounts require a rolling reserve. The risk department will determine if and when a rolling reserve is required.
Interchange fees refer to the issuing credit card brand fees such as Mastercard, Visa, Discover, and American express. These fees vary depending on the card type, American Express tends to be the most expensive card to process. Interchange rates can range from 1% to 2.5%.
Of course! Once you’ve established a healthy processing history, you may reach out to your Account Executive for a rate review. We recommend only doing this if your processing history shows low chargeback ratios and relatively low refund activity.
You may request an increase in your monthly volume at any time. However, it’s recommended to wait until your merchant account reflects healthy processing history as well as financial stability from your bank statements.
Reach out to our support team, or your dedicated Account Executive for any account-related updates you may need.
Depending on the program your merchant account fees are either taken at the beginning of each month. Some programs require daily discounts. Program details will be notated on your final agreement and if you have further questions you can always consult your Account Executive.
Bankcard can assist with ACH or eCheck services. An application and approval process still applies to this service, or it can be an added service with your processing account. Reach out to your Account Executive for details.
The approval process requires less documentation than applying for a merchant services account. And if you’re already processing with Bankcard an approval can be expedited.
Every account is different, however, most programs allow next-day settlements for ACH transactions.
ACH payment acceptance can be integrated into most website platforms. Reach out to a dedicated Account Executive for more information.
High-risk merchant accounts are priced higher than low-risk accounts because fewer banks are willing to work with businesses labeled “high risk”. Banks also need additional financial protections from loss on these accounts.
Bankcard will always provide fair pricing based on the risk level of every merchant. And if a current processing statement is provided we’ll do everything in our power to beat the merchant’s current rates.
While we love working with merchants that are considered high risk. There are limitations put in place by bank and card brand rules. If a merchant does not abide by the specific program rules described by the Account Executive assisting them we cannot ensure an approval.
Think of merchant accounts as a loan or a line of credit. And processing banks take on the risk of transactions getting charged back. Banks can end up liable for the actions of merchants, a problematic merchant can damage the reputation of the bank funding and processing the transactions.