Expand Your High-Risk Payment Processing Horizons with T1 Payments

Expand Your High-Risk Payment Processing Horizons with T1 Payments

Do you own or manage a high-risk business? Are your customers high-risk payers? While one does not necessarily entail the other — you can be a low-risk merchant with high-risk payers, and vice versa — businesses and customers labeled as high-risk do often go together.

If you fall into the high-risk business category, you need a payment processing solution that you can rely on at a moment’s notice. Look no further than T1 Payments, a next-generation high-risk payment processor that specializes in growing your e-commerce options through state-of-the-art, customized merchant services. Whether you’ve recently launched a high-risk business or are considering accepting high-risk credit card payments, T1 Payments is your one-stop source for experienced and exceptional support.

What is a high-risk payment?

A high-risk payment is just that — it’s a designation related to a payment that is deemed to be uncertain or questionable. Generally speaking, they typically come in the form of a high-risk credit card.

There are any number of reasons for why a purchase method or user may be considered high-risk. They include:

  • Low credit score
  • High chargebacks or history of excessive chargebacks
  • Insufficient funds
  • Overdrawing
  • Payment card fraud

What is a high-risk merchant account?

Similarly, a high-risk merchant account is also a designation, only this one refers to the account that enables businesses like yours to accept payments made by debit card, credit card or a high-risk credit card. Like high-risk payments, merchant accounts may be classified this way for one or several reasons:

  • High chargebacks
  • High volume merchant account
  • Out-of-country sales
  • Industry type

For example, CBD, telemarketing, fantasy sports, collections agencies, travel, online dating, gaming, casinos and fantasy sports are all classified as “high-risk” by the Federal Deposit Insurance Corporation. This isn’t a put-down, either. Frequently, it’s just the nature of the beast and occurs through no fault of business owners themselves.

High-risk payment processors may use other criteria for deciding what is and isn’t a high-risk merchant account (e.g. owner’s financial history, how long the company has been open for operations, etc.) but the above mentioned are the most common factors that affect this assessment. We work with all of these industries at T1 Payments, and many more.


High-Risk Payment Processors

What types of high-risk businesses are not able to get payment processing?

The consequence of this label is limitations, especially in terms of payment processors. Because the overwhelming majority of acquiring banks are risk averse, there aren’t many options for high-risk businesses to use, much less high-risk payment processors in particular. This typically means that in those cases where they are accepted, a high-risk business tends to pay very high interest rates. Business owners may ultimately decide to grin and bear it, assuming they don’t have much else in the way of options. Again that’s assuming they can find one; cannabis dispensaries are frequently cash-only businesses due to their inability to get payment processing.

That’s what makes T1 Payments distinctively different. While we can’t promise that we accept all business entities no questions asked, we examine each application we receive individually so we can get a full picture of your situation. Since no two cases are identical, we apply our approval standards as needed. We assume a thoughtful approach to vetting and examine the big picture. This enables us to get a better read on your situation and have an answer regarding your approval faster than most other high-risk payment processors. We offer highly competitive rates to boot. These are a mere handful of the factors that make T1 Payments an A-plus choice for expanded benefits, onboarding and beyond.

What are the minimum requirements for opening an account with high-risk merchant payment processors?

T1 Payments accept all types of businesses and specialize in those labeled high-risk. But you may wonder if there is a minimum standard you have to satisfy to open a high-risk merchant account with anyone.

Generally speaking, yes, and for the most part, it’s what you might expect when you apply for a financial service. Some of the pieces of information to prepare include an incorporation certificate, an organizational structure chart detailing shareholders (if applicable), a business license number (if applicable) and if you own an online business, something that demonstrates its fully compliant, featuring inclusions like “terms and conditions,” transparent contact information and dispute resolution specifics. You may also be required to print out or prepare financial statements that lay out your processing history for the last 6 to 12 months. Processing history should provide clarity on things like:

  • Total monthly sales volume
  • Number of monthly transactions
  • Number of monthly chargebacks
  • Percentage of monthly chargebacks (chargeback ratio)
  • Indication of offering recurring billing

High-risk payment processors’ minimum requirements for each can vary, but typically, applicants labeled high-risk have monthly sales volume ranging above $10,000, with the average credit transaction in the neighborhood of $100 or more. High-risk payment processors often see high chargebacks, but to gain approval, some require that the chargeback ratio be no greater than 1%.

Anyway, you get the point; there is a lot to it and high-risk payment processors do it all for due diligence.

The T1 Payments Difference

These are some of the many ways T1 Payments handles approvals differently. In order to get the approval process started, all we need is the prequalification form to be filled out and returned in full, along with the most recent three months of bank statements. If your business has been around a little while and you’ve used a payment gateway previously, three months’ worth of processing history may also be required. We enjoy simplicity, so we like to keep it simple for you, too.

From the seamless virtual terminal to hassle-free integrations, T1 Payments is your go-to processor. Contact us today and see what we have in store for your store — online or otherwise.