A third party high risk high risk merchant account is comprised of many businesses sharing a master merchant account. Startup businesses with no previous sales and industries that are considered restricted or to high risk for traditional providers may be good candidates for a third party high risk merchant account.
Third party merchant accounts are more expensive with rates varying around 9% and they are less reliable than a direct merchant account. Additionally, payouts may only come weekly and the provider is usually based in a foreign country. Although, a third party merchant account may be the only option for some businesses to obtain payment processing services.
If you have been turned down or labeled high risk by other credit card processors it may be a good time to look into what a third party merchant account service can do for your business.