Turning High-Risk into High Growth: There’s a new path forward in payment processing

Payment processing is the hidden foundation of the modern economy, helping businesses to flourish and enabling some of the most essential and joyous parts of consumers’ lives. From buying groceries, a new computer, or light bulbs for the kitchen to purchasing concert tickets, a new TV, or flights to Costa Rica– payment processing is the engine behind every electronic payment (credit cards, debit cards, digital wallets). And with roughly 90% of consumers relying on electronic payments, processing has become a necessity for businesses selling any form of good or service. Unfortunately, today tens of thousands of businesses are wrongfully deemed “high-risk” by traditional payment processors and denied service, forcing them to resort to antiquated payment processors and sky-high transaction fees, all just because of the industry they operate in. For a business owner, this is the equivalent of being denied a bank loan and needing to resort to a loan shark instead– not a position you want to be in.

So what types of industries are considered “high-risk”?

“High-risk” industries include, for example, travel/leisure, gaming, fitness (gyms), and insurance, to name a few. If a payment processor decides that your business is operating in a “high-risk” industry, you will be declined their services, often even if your business itself is bulletproof and has a proven track record of success, growth, and financial stability.

So what happens once you are declined service by the leading payment processors?

If you are declined service by the leading payment processors (as many businesses are), you are forced to use a payment processor that specializes in “high-risk” businesses, lumping you in with businesses that are actually high-risk e.g. multiple fraud reports, fishy financials, semi-legal industries, etc. Historically, this meant you were at a sizable disadvantage.

To put it simply, the leading payment processors just make all things pertaining to business operations and finance easy for their customers. If you work with a leading processor, you likely have low transaction fees, tons of helpful financial management tools and resources, seamless integrations into E-commerce sites, preferred payment on big platforms like Shopify, the ability to process international cards, and your processor will likely have highly honest/transparent business practices– the list goes on. High-risk processors are often the exact opposite: predatory pricing that is often misleading and dishonest (beware of secret charges), confusing and broken web interfaces, clunky/frustrating (if any) integrations with E-commerce sites, poor customer service, and little to no additional helpful financial management tools or services.

But this is not even the worst part. For many businesses, the leading payment processors will admit them first and assess their “risk” later, allowing them to operate for a few months then shutting them down without notice, freezing their account, and holding their funds (often indefinitely). More often than not, these businesses are completely caught off guard when they are notified of their account freeze and their new “high-risk” status because they assumed — as almost anyone would — that an honest and successful business has no reason to worry about being considered “high-risk.” Many of these individuals build their business up to tens or hundreds of thousands of dollars with no disputed charges, only to be kicked off and have their account frozen simply because their payment processor finally got around to checking what industry they operate in.

Even if a small-medium business is accepted by a leading payment processor, peace of mind is often a luxury that has historically been out of reach for businesses operating in “high-risk” industries (whether they realize it yet or not).

Edge offers a brighter path forward for “high-risk” businesses

At Edge, we believe all businesses should be judged based on their performance, not the industry they operate in. We look at things like previous financial statements, payment history, and various other indicators to get a more accurate picture of your business’s financial health and offer you the simplicity, service, ease-of-use, support, and peace of mind you deserve.

Hundreds of thousands of businesses are denied access to fair payment processing and effective financial management, forced to work twice as hard to achieve the same result as their peers– we aim to fix that.

If you’d like to learn more about how edge can support your business, contact us at contact@tryedge.io or check out our website.

Related Articles

For more insights into payment processing solutions and industry updates, be sure to explore the following resources:

• Understanding the Complexities of Payment Processing in the Telehealth and Telemedicine Industry

• Navigating the Regulatory Challenges Associated with Cannabis Payment Processing

• Identifying Effective Payment Solutions for Alcohol Beverage Companies

• Reviewing the Best High-Risk Payment Processors for the Nutraceutical Industry

• The Importance and Functionality of Merchant Accounts for Telehealth Companies

• Exploring the Complexities of Regulatory Compliance in Cannabis Payment Processing

• Strategies for Minimizing Fees Associated with Cross-Border Payments

Stay connected with Edge for the latest updates and strategies in payment processing solutions.