So, you want to go into the business of firearms, adult entertainment, CBD products, travel packages, or gaming? You knew the potentials for hard work, fun, profits, and numerous customers were there in all of these sectors. But were you ready to be categorized as a poor lending risk? If you’re a high-risk business according to the designation of the payments processing industry, you need to learn a few things about how to partner with the best merchant account company.

Don’t panic.

Before we go any further, take a deep breath and relax. Remember that lenders are in business to make money just as you are. And right or wrong, they perceive the type of sales you want to conduct as representing a higher-than-average risk. Their fear is that you will be unable to keep up with your payments.

Why? It’s because these specialty businesses have the following characteristics.

• Often are subject to additional governmental regulations that can raise costs.
• Have clients who frequently want refunds (chargebacks) that cost the merchant and provider time and money.
• Are associated with a shady or tawdry reputation that might make the lender look bad.
• Occupy a volatile marketplace that could change quickly, jeopardizing the survival of the business.

Once you are placed in the high-risk category, there is nothing you can do to change it. Your best option is to accept the inevitable but work hard to find the optimal high-risk merchant account provider with some or all of the below attributes.

Experience and expertise.

Not every high-risk provider has the same degree of understanding about your particular industry, the laws that govern it, and its payments landscape. Before you sign on any dotted lines, be sure the lender has a long track record of partnering with companies like yours who sell similar products .

Emphasis on high security.

Many adult businesses, especially those that operate online, are highly susceptible to data breaches and identity thieves. That’s why it is vital that your payment processor take security seriously. At minimum, they should comply with the Payment Card Industry Data Security Standard (PCI DSS) and should be able to demonstrate that they have implemented robust anti-fraud and authentication measures for all the point of sale, shopping cart, and payment gateway software they sell to you.

Transparent fees.

As a high-risk business, you will be charged higher per-transaction costs and may also have to pay more for chargebacks, below-threshold sales, and early cancellation. However, everything you are required to pay should be clearly defined before you sign any agreements. Additionally, you may be able to negotiate or even eliminate some costs, so don’t be shy about asking.

Responsive customer service.

Time is money in virtually all businesses. Should your equipment malfunction or you experience a customer service issue, you should be able to get in touch with a knowledgeable representative in a reasonable amount of time. Assistance should also be available through other channels, including live chat and email. Additionally, you should have 24/7 access to an online knowledge base and user forums.

As you shop around for the best payment processor, don’t settle on the first one you see or gravitate toward the one with the lowest fees without thoroughly investigating all other aspects of the company. Keep in mind that the vendor you choose will be your partner for the foreseeable future, for better or worse.

Succeeding in today’s specialty businesses can be a roller coaster with many associated risks. However, with great products and services, a strong business plan, and the right high-risk merchant account provider at your side, you can rise above your many competitors, whatever your niche may be.