C
C.Pearse
- Original Poster
- #3
Because I'm providing "gambling instructions" that in itself is classed as "high risk" according to the banks.
I've spoke to Barclays and a couple of the big ones a while ago and they couldn't help me because of the industry.
I'm looking for recommendations if possible as I'm fed up of filling out numerous forms for each bank only to hear the words "no"!
Cheers
Chris
I've spoke to Barclays and a couple of the big ones a while ago and they couldn't help me because of the industry.
I'm looking for recommendations if possible as I'm fed up of filling out numerous forms for each bank only to hear the words "no"!
Cheers
Chris
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P
PayVector
- Original Poster
- #5
Chris - have you tried Iridium on here? They were extremely helpful when I spoke with them
Gambling is always difficult. UK banks will generally only take the business if the gambling merchant is very large. Which means the smaller start ups end up with high risk processors and paying high fees.
Chris - I have your PM and will get you an answer sometime today or tomorrow.
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For some industries, merchant accounts can be more difficult to obtain as they are thought to be a high risk by the merchant account provider. Such industries include:
Replica Products Dating Telemarketing Adult Multi-Level Marking Cell Phone Auctions Travel Pharmacy
Banks and third party merchant account providers consider these industries a higher risk due to a higher level of charge backs, returns/refunds and credit card fraud. As a result of the high risk associated for the provider of the merchant account, there are higher rates associated with merchant accounts.
It can be difficult to obtain a high risk merchant account from a bank and in most cases can also be quite expensive. Typically speaking, banks do not provide merchant account services to high risk merchants, if they do their rates will be higher than available from a third party provider. Third party merchant account providers can provide accounts to high risk merchants as they have relationships with multiple banks, allowing them to spread around the risk.
Due to many competing third party providers, rates for high risk merchant accounts can be significantly lower than those from a bank. However, the rates will be higher in order to offset the risk involved. Typically, application fees for a high risk account range from $500 to $5000, though not all providers charge application fees. Then there are two charges that occur each time a transaction is processed:
The transaction fee is a flat rate fee between $0.35 and $0.75
The discount rate is a percentage of the transaction amount, and is usually anywhere from 3% to 15% for a high risk merchant.
Other fees include monthly statements and services such as fraud protection, as well as charges for refunds and charge backs.
sales (at) emerchantpay (dot) com
Replica Products Dating Telemarketing Adult Multi-Level Marking Cell Phone Auctions Travel Pharmacy
Banks and third party merchant account providers consider these industries a higher risk due to a higher level of charge backs, returns/refunds and credit card fraud. As a result of the high risk associated for the provider of the merchant account, there are higher rates associated with merchant accounts.
It can be difficult to obtain a high risk merchant account from a bank and in most cases can also be quite expensive. Typically speaking, banks do not provide merchant account services to high risk merchants, if they do their rates will be higher than available from a third party provider. Third party merchant account providers can provide accounts to high risk merchants as they have relationships with multiple banks, allowing them to spread around the risk.
Due to many competing third party providers, rates for high risk merchant accounts can be significantly lower than those from a bank. However, the rates will be higher in order to offset the risk involved. Typically, application fees for a high risk account range from $500 to $5000, though not all providers charge application fees. Then there are two charges that occur each time a transaction is processed:
The transaction fee is a flat rate fee between $0.35 and $0.75
The discount rate is a percentage of the transaction amount, and is usually anywhere from 3% to 15% for a high risk merchant.
Other fees include monthly statements and services such as fraud protection, as well as charges for refunds and charge backs.
sales (at) emerchantpay (dot) com
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P
PayVector
- Original Poster
- #7
Kiberlain,
The account type you are mentioning is called an aggregator account and as far as I know is not card scheme compliant. I would strongly advise against anyone ever going into a relationship with a processor where the processor does not set up a direct contractual relationship between the merchant and the acquiring bank as per card scheme KYC rules.
As we have recently seen on these forums Aggregator processors tend to have a short life span for a very simple reason. They take all business types and take the financial risk. It only takes one bad merchant to take them down. And when they go down they take all their combined merchants money with them.
There is an exception to this of course and it is called "Merchant of Record". I have only ever seen this given in special circumstances, ie the need to load thousands of merchants of a certain type. However the contract is a three way and not a traditional two way.
The account type you are mentioning is called an aggregator account and as far as I know is not card scheme compliant. I would strongly advise against anyone ever going into a relationship with a processor where the processor does not set up a direct contractual relationship between the merchant and the acquiring bank as per card scheme KYC rules.
As we have recently seen on these forums Aggregator processors tend to have a short life span for a very simple reason. They take all business types and take the financial risk. It only takes one bad merchant to take them down. And when they go down they take all their combined merchants money with them.
There is an exception to this of course and it is called "Merchant of Record". I have only ever seen this given in special circumstances, ie the need to load thousands of merchants of a certain type. However the contract is a three way and not a traditional two way.
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P
PayVector
- Original Poster
- #9
I do not know how the above posters operation works and am not commenting on anything to do with them.
A single merchant has a the exact same risk profile regardless if his transactions are spread amongst many banks or like they should be, one bank.
There are exceptions to this rule but I have only ever seen in very large merchants where the overall volume is more than a single bank can underwrite. I don't think that is the case here.
A single merchant has a the exact same risk profile regardless if his transactions are spread amongst many banks or like they should be, one bank.
There are exceptions to this rule but I have only ever seen in very large merchants where the overall volume is more than a single bank can underwrite. I don't think that is the case here.
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Hello Gentlemen & Ladies,
I have recently established a business and have completed an agreement with a call centre which will do sales for me. I had made some applications for a merchant account and a virtual terminal but high street bank considers that to be risky even with the refund and privacy policy stated and PCI DSS assessment being done. I have also tried some private companies who provide such facilities but had no luck there, can anyone advise which corporation would provide me a merchant account and a virtual terminal? at this point it doesn't matter if the rate is 5% or 10% at least I will stop loosing my precious funds. If any company is reading this, please contact me at your earliest. And if anyone can advise me on this issue kindly e-mail me.
Thank you.
I have recently established a business and have completed an agreement with a call centre which will do sales for me. I had made some applications for a merchant account and a virtual terminal but high street bank considers that to be risky even with the refund and privacy policy stated and PCI DSS assessment being done. I have also tried some private companies who provide such facilities but had no luck there, can anyone advise which corporation would provide me a merchant account and a virtual terminal? at this point it doesn't matter if the rate is 5% or 10% at least I will stop loosing my precious funds. If any company is reading this, please contact me at your earliest. And if anyone can advise me on this issue kindly e-mail me.
Thank you.
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0
M
mehode
- Original Poster
- #11
"it doesn't matter if the rate is 5% or 10%"
I think that's what greedy banks want you to believe. It does matter, that the whole point. You might want to look into Paypal, they also have the pro and that is especially good when you have a good turnover.
This situation is a real shame, like if we were begging for a loan when we are not.
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Some banks may take your application on board but will put you on a deferred settlement, simply because of the nature of your business. They will usually expect 12 months trading before they will remove the deferred settlement and based on a good running account for the year. Maybe try Barclaycard or streamline. Some may accept a bond to lift the deffered settlement but problem will always be waiting for 30 days to receive the money. Regarding PCI DSS they will do a scan on your website looking for security loopholes and will charge you £75.00 for the service of the scan.
Mark
Mark
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It is a real nightmare to open a merchant account for a penny auction site.
I was just about to launch my site and I cannot find a single merchant account provider due to high risk. Everybody is asking for a transaction history which I don't have as this is a new business. Besides I cannot believe that dating sites are more likely to get a merchant account rather then a penny auction sites as they the biggest scam of all.
I was just about to launch my site and I cannot find a single merchant account provider due to high risk. Everybody is asking for a transaction history which I don't have as this is a new business. Besides I cannot believe that dating sites are more likely to get a merchant account rather then a penny auction sites as they the biggest scam of all.
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C
ChrisCUK18
- Original Poster
- #16
have you managed to find anything yet?
Is this because of your trading history or because you are "high risk" in the banks eyes... Merchant accounts really are getting stupid criteria... Why can't bank just let people process debit cards only for 12 months then upgrade to credit cards (where most of the chargebacks happen)
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If you are UK based and have a business or sole trader bank account then we may be able to assist you with a low cost merchant account with No Setup Fee and we can also provide you with a payment gateway for taking payments via a website and/or over the telephone - again with No Setup Fee. Feel free to drop me a PM with your contact details if you would like to discuss further. Click the link in my signature to visit our website and find out more about our service.
Thanks,
Simon
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Although we work with many high risk businesses unfortunately we are not in a position to support penny auction sites. However if you PM me your contact details we can refer you to one of our payment partners who does work with this particular sector.
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Hi
I am in the process of starting my own business, selling advertising services, banks and many merchant account providers class my industry as high risk which results in me being turned down. I know my competition has got a merchant account so why am I finding nothing but dead ends? Can somebody please help me? Any information is appreciated! All ready 6 weeks past my business plan sched : (
I am in the process of starting my own business, selling advertising services, banks and many merchant account providers class my industry as high risk which results in me being turned down. I know my competition has got a merchant account so why am I finding nothing but dead ends? Can somebody please help me? Any information is appreciated! All ready 6 weeks past my business plan sched : (
Upvote
0
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