What is a high-risk merchant account? In simple terms, a high-risk merchant account is a banking account that is used for services that are more of a risk. They can be used for investment purposes where there is a risk involved that is beyond the standard acceptable to a high-street bank, and other similar non-standard purposes.
These accounts can be especially useful but do sometime come with higher charges and costs. In many cases, higher risk can mean higher potential returns, but the bank is looking for the account holder to be the one who takes the risk. Businesses and service providers operating in high-risk market sectors often use high risk merchant accounts, so let’s have a look at a few.
Forex and Bitcoin
Forex – which involves dealing in world currency on the Foreign Exchange – is considered a high-risk investment. Currency exchange rates can fluctuate due to many different factors – in fact, they are one of the most fluid markets of all – and thus what looks like a great investment can become a risk. They can be lucrative, which is why Forex businesses do take advantage of a Forex merchant account and take their part in the process.
Likewise, bitcoin – the leading cryptocurrency – is also a risky market, but again one that can be lucrative if the investor happens to be sensible and put their money in the right places at the right time. A Bitcoin merchant account allows people to invest in cryptocurrency and take a chance on what is a growing market, and is worth investigating if you happen to want to go down this route.
Gaming and Travel
Gaming is big business these days with many online casinos offering a great selection of available games. From slot machines to full on roulette and live-dealer card games, there is plenty to enjoy, but as always gambling is a risk. The problem for gaming services providers is that many banks consider the risks too high, so the gaming merchant account is a way for such businesses to operate successfully. This is a high-risk but also booming and lucrative sector, and one that requires careful consideration.
Businesses in the travel sector also make use of merchant accounts, as they can be useful for procuring goods and services essential to their effective operation. Also, high risk merchant accounts are also used when dealing in goods that require payment on foreign currency and can make such transactions a lot easier in this respect. A travel merchant account is a much-used option in the industry, and makes sense for efficient operation.
High risk merchant accounts are widely used in many businesses – the above are just a few examples – to enable them to access payment and transaction services that regular banks may be reluctant to offer. If you believe you need the services of a high-risk merchant account provider, we recommend you have a closer look and find the option that is right for you.