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What up YouTube has rules for rebels here and in today's video I wanted to talk about high risk merchant processing or high risk credit card processing now we're basically going to be addressing the topics of why is your business considered high risk what industries are considered high risk what processes will work with you going offshore which is outside the US or staying domestic and lastly how to beware of scams so first anyone watching this video you probably have already been considered a high risk merchant or have already been declined by stripe or PayPal or first data because they say your high risk businesses are classified as high risk for a number of reasons it could be due to the nature of your industry, or it could be due to you know your business is a new startup, or you have a low credit score personally or with previous merchants you've got a lot of chargebacks or something like that so why is your business considered high risk well first we'll talk about the reasons why you might personally be considered at risk they've run your personal credit and your business credit when you sign up for a merchant account so if you have really been credit right off the bat that's automatically going to be considering you high risk you could have a very low risk business you could sell hair clothes or t-shirts which is not high risk but because your personal credit or your business credit is bad they may consider you high risk also if you've had a bad experience or haven't had a bad history with payment processors in the past maybe you had a PayPal account, and you had $300 with the chargebacks, and you never paid it just closed your PayPal account well PayPal is basically going to blacklist you, and you're going to be considered high risk from then on out that's really the much less often the case than just your industry being blackballed is high risk, so I mean that's things you can improve you can improve your personal credit score and if you have low credit what you can't change is that the risk associated with your business so in a second here I'm going to show you a list, and it's a very long list of what are considered high risk businesses to merchant processors, and I'll give you one example as gas-station, so a lot of people probably don't think gas agents are high risk the reason it's high risk it's not high risk of loss its high risk due to a lot of charge backs, and I'm only going to be for a dollar two dollars five dollars but independent sales organizations who basically sell merchant services on behalf of a larger Bank like at BMO Harris Bank a Chase Bank who are selling it on behalf of ISA MasterCard Discover American Express they could potentially risk losing their ISO status to risk losing their relationship with Visa or MasterCard if they have excessive returns even something like PayPal if you do a lot of returns PayPal eventually will contact you and be like you need to stop doing this Visa and MasterCard are getting mad at...
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