A crucial safety net for high-risk merchants.
Why high-risk businesses need backup merchant accounts.
Discover how backup merchant accounts can safeguard your high-risk business from sudden shutdowns and maintain your cash flow.
30%
of high-risk businesses
face processor closures.
70%
of successful businesses
have backup merchant options.
24/7
support available
for our clients.
1-2 days
to set up a backup
merchant account.
In the world of high-risk businesses—including CBD, kratom, kava, and various nutraceuticals—the unpredictability of merchant processing can be extreme. Processor closures, sudden reviews, and changes in regulations can pull the rug out from under merchants who depend on consistent online sales. Having backup merchant accounts can provide a crucial buffer against these risks.
Understanding the risks
High-risk businesses face specific challenges that traditional businesses do not experience to the same degree. Factors such as chargebacks, gateway switching, and intense scrutiny from payment processors lead to increased pressure on merchants.
Processor closures
Payment processors may choose to close accounts without warning, relying on terms that often favor their interests over those of the merchant. This risk necessitates having a backup in place to continue transactions.
Chargebacks and reserves
Excessive chargebacks can lead to the freezing of funds or the required establishment of reserves—money set aside by the processor to cover potential losses. A backup account can help protect your operational cash flow.
Sudden reviews
Merchants might undergo surprise reviews by payment processors that can lead to temporary account suspension. Creating a backup account can mitigate interruptions in service.
Card brand pressure
Card brands like Visa and Mastercard can impose volume caps on high-risk businesses, potentially limiting the amount of business they can process. Backup accounts can provide relief during high-demand periods.
Gateway switching
The need to switch gateways can arise suddenly due to processor issues or changes in policy. Backup accounts can be essential for quick transitions to avoid losing sales.
Continuity planning
Having a business continuity strategy that includes backup merchant accounts ensures that high-risk merchants can maintain operations regardless of unforeseen closures.
Avoiding sales loss
Online sales are often the lifeblood of high-risk businesses. Losing the ability to process payments overnight can be devastating. Backup accounts protect against such scenarios.
Choosing the right provider
When selecting a backup merchant account provider, consider their experience with high-risk industries and the ease of integration with your existing systems. Look for solutions that offer flexibility and fast set-up times.
FAQs about backup merchant accounts
Common questions and answers.
What are the key benefits of having a backup merchant account?
The key benefits include business continuity, reduced downtime, and protection against pressure from card brands.
Is it difficult to activate a backup merchant account?
Most providers make it simple to activate a backup account with minimal paperwork.
How do I switch to my backup account?
Switching is typically quick—complete a few forms, and you’re ready to process payments again.
What industries are considered high-risk?
Industries considered high-risk include CBD, gambling, adult entertainment, and nutraceuticals.
Will having a backup account affect my primary account?
No, having a backup account should not negatively impact your primary merchant account.
Can backup accounts help reduce chargebacks?
Yes, they can help spread volume across accounts, potentially reducing chargeback rates.
Protect your revenues with a backup account.
Don’t wait for a shutdown to find a solution. Apply for a backup merchant account today!