We Help Businesses Establish Strong Relationships with High Risk Merchant Account Providers

Being labeled a high risk merchant has several implications. High risk merchants will typically have a more difficult time finding a reliable processor; and, when they find a reliable processor that is willing to work with them, they will usually find themselves facing higher fees and less favorable contract terms than their low risk counterparts.

While there may be nothing a business can do to avoid being labeled a high risk merchant, there are steps high risk merchants can take to minimize their costs and risks. At Tamou Law Group, we have decades of experience working with high risk merchants. We help our clients establish strong relationships with high risk merchant account providers, and we work with our clients to help them manage their payment processing-related risks effectively.

We Work with All Types of High Risk Merchants

Our lawyers work with all types of high risk merchants. Processing companies label businesses as high risk for a variety of reasons, and understanding why your business has received this label can be helpful as you move forward. Some of the most common reasons for high risk merchant classification include:

  • New Merchant – Processors will often label businesses as high risk simply because they do not have a payment processing history.
  • Low Credit Score – Businesses that have low credit scores may also be labeled as high risk merchants.
  • High Transaction Volumeor Value – Processing a high volume of transactions or regularly processing substantial transactions can also lead to a high risk label.
  • Global Processing – Businesses that accept payments from foreign countries may receive the high risk label as well.
  • High Risk Industries – Processors will often place businesses in the high risk category based on the industry in which they operate. For example, gambling and gaming, marijuana and CBD, and debt collection businesses will often be categorized as high risk merchants.

Having a high percentage of chargebacks or returns can also result in high risk merchant designation regardless of a business’s other distinguishing characteristics. In these cases, businesses may be able to shed the high risk label by making changes to their marketing practices or terms of sale. Terminating a business’s high risk designationis a possibility in other scenarios as well.

How We Help High Risk Merchants

We offer a broad range of legal services for high risk merchants. These services include:

  • Establishing relationships with high risk merchant account processors
  • Successfully navigating the underwriting process
  • Negotiating high risk merchant account processing agreements
  • Managing relationships with processors and addressing issues as they arise
  • Seeking to terminate high risk merchant designations
  • Processors will often place businesses in the high risk category based on the industry in which they operate. For example, gambling and gaming, marijuana and CBD, and debt collection businesses will often be categorized as high risk merchants.

Speak with a High Risk Merchant Processing Lawyer at Tamou Law Group

If your business needs help dealing with any issue related to high risk merchant processing, we encourage you to contact us for more information. To arrange a confidential initial consultation with a high risk merchant processing lawyer at Tamou Law Group, please call 602-618-1385 or tell us how we can help online today.