Many merchants face problems obtaining merchant accounts to process credit card payments and for ACH processing. This is not a new phenomenon as new businesses pop up every day and it is almost mandatory to accept credit cards if you want to stay in business. However, let’s be clear that the problems are not with obtaining approvals for commercial accounts, but with processing card-not-present payments and acquiring high-volume accounts, and obtaining the cooperation of banks and processors for such services. These high-risk businesses are categorized as mail order, telephone order (MOTO) and Internet online transactions, and lumped together by banks and processors.

The problem here is that for most banks and processors, these merchants are a high-risk business and they put a cap on monthly sales volumes, so the merchant cannot grow with the business. As a result, most of these merchants request merchant service providers so that they can obtain a high volume merchant account.

Acquiring a high volume merchant account is an important factor in helping your business grow and can have disastrous results if you are unable to accept credit card payments or ACH transactions by check. It is important that you find a capable merchant service provider to work with, because your current bank or processor may provide you with a high volume account, but will impose various unreasonable restrictions and regulations.

The next step for you is to work with merchant service providers to determine the processing capabilities you will receive. You need to establish your needs, whether it is for a high volume account or unlimited processing. Also, determine if you will be given volume restrictions. Foremost among the considerations is whether you need a local or an offshore account. In some cases, you may be able to purchase a high volume or unlimited account from a national provider. However, if you are in the high risk category, you will need to look into offshore account providers. Once you decide what is best, and whether going for an offshore account is right for you, you should look for a merchant account provider that deals specifically with offshore and high-risk merchant services.

Applying for any type of merchant service provider involves similar application procedures as the national business application, including critical business-related data such as current sales and estimated sales volumes once you receive a high-risk merchant account . Once the application is submitted, the bank assesses the risk it assumes by hiring you, which includes several aspects, of which the projected sales volume is only one. They might even ask if your risk will be minimal in the event that you can’t stay in business and have to cover chargebacks. Chargebacks, which may be due to customer satisfaction or compliance issues, also help determine limits and regulations around your new account. There are, of course, more secure services and products that require business cards or online checks for banks to process. The most common high-risk accounts are required when merchants need to process credit card transactions where the cardholder is not physically present. These are, as mentioned above, MOTO or online sales businesses. Banks take more risk in providing such accounts because the threat of fraud and stolen card payments is much greater, as is the case of identity theft. It is a common misconception that high-risk business accounts are required for illegal services or for gray or black marker products. This is a false notion. Banks always do research on the merchants they serve, and they will never accept any risk in such business and will not provide any type of merchant service to them.

A true merchant account provider features various merchant services such as virtual card terminals, fraud debugging, multiple currency processing capabilities, direct bank merchant identification, third-party collectors, 24-hour reporting, and the ability to receive payments from all major credit cards such as MasterCard, Visa, American Express, Switch, Discover, Solo and JCB. These internal services provided by the merchant account provider offer you and your clients secure processing environments. However, you should do your research thoroughly because all merchant account providers do not provide these services and cannot handle your high volume accounts.

Most businesses these days require high-volume, high-risk merchant accounts in order to keep up with current customer trends and expand their business. Choosing to work with merchant service providers is a good idea given today’s card acceptance services and online check transactions. You can ensure the long-term security and vitality of your business once you choose to work with a business service provider that has the necessary experience and reputation.