International Merchant Accounts & Payments

04 January 2024

Written by Libby James

Libby James is co-founder, director and an expert in all things merchant services. Libby is the go-to specialist for business with more complex requirements or businesses that are struggling to find a provider that will accept them. Libby is regularly cited in trade, national and international media.

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Introduction To International Credit Card Processing

International credit card processing can be a complex and challenging aspect of running a business, particularly for merchants considered high-risk. If you’re operating a business that falls into this category, it’s essential to understand the intricacies of international credit card processing to ensure smooth transactions and minimise potential risks. In this article, we’ll explore the key points you need to know about high-risk merchant accounts and international credit card processing, providing you with valuable insights to make informed decisions.

What Are High-Risk Merchant Accounts?

A high-risk merchant account is specifically designed for businesses that operate in industries or markets associated with a higher level of risk. These risks can include factors such as high chargeback rates, industry volatility, or legal and regulatory considerations. Understanding whether your business falls into the high-risk category is crucial, as it will affect your ability to obtain a merchant account and process international credit card payments.

Challenges Of International Credit Card Processing For High-Risk Merchants

Processing international credit card transactions as a high-risk merchant can present several challenges. These challenges may include higher processing fees, limited availability of payment processors, stricter underwriting requirements, and increased fraud prevention measures. It’s important to be aware of these challenges so you can proactively address them and implement effective strategies to mitigate potential risks.

Benefits Of High-Risk Merchant Accounts For International Credit Card Processing

While high-risk merchant accounts come with their own set of challenges, they also offer numerous benefits for international credit card processing. Some advantages of obtaining a high-risk merchant account include:

Global Expansion Opportunities: Having a high-risk merchant account enables you to expand your business internationally and tap into new markets.

Diverse Payment Options: High-risk merchant accounts typically offer a wide range of payment options, including international credit card processing, which allows you to cater to customers worldwide.

Enhanced Fraud Protection: These accounts often provide advanced fraud prevention tools and technologies to help protect your business from fraudulent transactions.

Dedicated Customer Support: High-risk merchant account providers understand the unique needs of high-risk businesses and offer specialised customer support to address your concerns and provide guidance.

(CVV/CVC), and advanced fraud detection tools can help high-risk merchants reduce the risk of fraudulent transactions.

Can high-risk merchants still obtain competitive rates for international credit card processing? While high-risk merchants may face higher processing rates compared to low-risk businesses, working with an experienced payment processor specialising in high-risk accounts can help negotiate competitive rates based on your business’s specific needs and risk profile.

How Merchant Advice Service Can Help

At Merchant Advice Service (MAS), we understand the unique challenges faced by high-risk merchants when it comes to international credit card processing. Our team of experts specialises in providing tailored solutions for businesses in high-risk industries, helping you navigate the complexities of obtaining a high-risk merchant account and optimising your international payment processing. Whether you need assistance with choosing the right payment processor, understanding underwriting requirements, or implementing fraud prevention strategies, we are here to guide you every step of the way.

To learn more about how MAS can help you with international credit card processing for high-risk merchants, visit our blog page!

Conclusion

Understanding international credit card processing is vital for businesses, especially those categorised as high-risk. The types of businesses that fall under this category often encounter challenges such as higher chargeback fees and stringent regulations when dealing with credit and debit card transactions. While online payments might pose a higher risk due to international transactions, solutions like high risk merchant services can offer support.

Small businesses need to be particularly cautious of cross-border fees and monthly fees associated with payment service providers. Nevertheless, with the right guidance and tools, processing international payment becomes a seamless experience. It’s crucial to choose a dedicated service that comprehends the nuances of your business, ensuring efficient and secure operations.

FAQs

What industries are considered high-risk for international credit card processing?

Industries such as online gambling, adult entertainment, pharmaceuticals, and travel services are often classified as high-risk for international credit card processing due to their inherent nature and associated risks.

How can I determine if my business is classified as high-risk?

The classification of high-risk businesses varies among payment processors, but common factors include chargeback rates, industry reputation, compliance with regulations, and product or service offerings.

What are the main factors that affect the approval of a high-risk merchant account?

Factors such as the industry you operate in, your business’s financial stability, processing history, and risk mitigation strategies can significantly impact the approval of a high-risk merchant account.

Are there specific regulations or compliance requirements for international credit card processing?

Yes, international credit card processing involves compliance with various regulations, such as anti-money laundering (AML) laws, data protection regulations like GDPR, and industry-specific regulations.

How do higher processing fees affect high-risk merchants?

High-risk merchants often face higher processing fees due to the increased risk associated with their businesses. These fees can vary depending on factors such as the industry, processing volume, exchange rates, and the payment processor chosen.

What should high-risk merchants consider when selecting a payment processor?

High-risk merchants should consider factors such as the processor’s experience with high-risk industries, their underwriting standards, available payment options, customer support, and the associated fees and rates.

How can high-risk merchants mitigate fraud in international credit card processing?

Implementing fraud prevention measures such as address verification systems (AVS), card security codes (CVV/CVC), and advanced fraud detection tools can help high-risk merchants reduce the risk of fraudulent transactions.

Can high-risk merchants still obtain competitive rates for international credit card processing?

While high-risk merchants may face higher processing rates compared to low-risk businesses, working with an experienced payment processor specialising in high-risk accounts can help negotiate competitive rates based on your business’s specific needs and risk profile.