When an employee is caught viewing certain types of images or websites at work, the consequences can be grim. As a result, the acronym NSFW (not safe for work) was developed as a tag to warn potential visitors away from edgy or explicit content. But if you run a business that is labeled NSFW, you need to be intentional about understanding the constraints you are under as well as the necessity of protecting the customers who make the decision to do business on your website.

What is a high-risk merchant account?

Banks and other lending institutions are in business to make money. Therefore, it stands to reason that they carefully evaluate anyone applying for their services, only agreeing to do their secure credit card processing if they are reasonably sure the company will be able to make their payments, including interest. If a business does not meet the standard credit card processing requirements, it is placed in the high-risk category.

There are several factors that payment processing companies and banks use to determine that a business’s level of risk is elevated. They include the following.

• Greater than average potential for chargebacks or fraud.
• Companies located offshore that make most of their sales in the U.S.
• The products sold are widely considered controversial or edgy.
• There are extensive regulations or age requirements associated with your industry.
• Your personal credit score is low, below 400.
• You sell a lot of high-ticket items over $3,000.

Among store types that are always considered high-risk are casinos, gambling sites, pornography or adult product sellers, subscription businesses, vape and e-cigarettes, among others.

When your NSFW company is classified as representing above-average jeopardy to the lender, you may find that it takes longer to have your application approved by a high-risk payment processor. Additionally, you may be required to pay elevated monthly fees and could also be locked into a contract. Finally, some account providers require that you open a rolling reserve account amounting to anywhere between 5-10% of monthly sales. In the event of a chargeback, this repository is tapped to pay back the account provider, thus mitigating their risk.

The good news is that there are many reputable high-risk account providers in the marketplace today who have direct experience in your specific industry. If you take the time to do your research, you can find a vendor with fair rates, reliable customer service, and a proven track record in your niche.

Benefits of partnering with a high-risk processor.

In one respect, you have no choice but to hitch your NSFW store’s wagon to one of these high-risk providers. After all, without them you would be unable to take the electronic payments that are the lifeblood of your ecommerce business. However, there are other upsides as well.

For one thing, your high-risk provider should be well-acquainted with your industry, particularly any idiosyncrasies it possesses that can lead to chargebacks or fraud. With this insider knowledge at your disposal, you can minimize the chances that you will be a victim of cyber crime.

Additionally, this company is well-equipped to take payments in multiple currencies and from customers living in various parts of the world. As a result, your earnings potential is unlimited. For instance, you can accept subscription or recurring payments, can process over $20,000 per month and do not need to be concerned if customers buy big-ticket items. In short, you can sell any legal products or services you want without needing to worry about sales ceilings or political controversy.

How to find the best high-risk processor.

The ideal merchant account provider for your high-risk business will do much more than simply run your customers’ transactions. They should also be in compliance with all Payment Card Industry Data Security Standards (PCI DSS), the body of regulations put forth by the financial companies that protects cardholders from fraud. Additionally, your company should take all of the latest, proven steps to further safeguard customers’ details, including encryption and tokenization protocols.

Take the following suggestions into consideration as you review your options.

• Be open and transparent in your communications during the application process. Don’t attempt to hide the nature of your business or your sales patterns. Full disclosure is the name of the game because sooner or later, account providers will find out what you are attempting to hide. Trust us, you don’t want to pay the price of deception.
• If possible, hold a reserve in your bank account. It should be 25-30% of your monthly card transaction amount.
• Be prepared to submit the requested documents. These will include three to six months of your bank statements as well as tax information.
• Ask to have a direct conversation with the company before submitting your application. This is because many of the details of high-risk payment processing fees and requirements are customized and negotiable.
• In this meeting, pay attention to details such as the vendor’s customer service record, their industry experience, reserve requirements if any, how long it takes until you can access your funds and how and when you can make changes to your arrangement.
• If possible, find someone with good credit to cosign on your application and account.
• Be sure that all elements of your business, including every aspect of your website and customer service desk, are in place, cohesive, clear, and thorough. The underwriting team evaluating your application will inspect every part of your business, even cold-calling or mimicking the actions of a customer attempting to make a purchase.

Although the process for obtaining the services of a high risk payment processor can seem extensive and protracted, the secure credit card processing you eventually receive will truly be your reward. Being considered a high-risk business may have its downsides, but now that you have a reliable merchant account provider on your side, you will be able to thrive in even the most competitive of marketplaces.