Reasons Why Accounting Businesses are High Risk

The accounting service providers offer a multitude of services. From tax preparation to investment management, account firms can handle it all. In the past, five to six years, the accounting service industry has grown rapidly. Namely by sustained economic growth, rising, equity markets and an increasing number of new businesses. In 2018, 1.4 million jobs went to accountants and auditors. However, the business is considered high risk by banks and has a hard time obtaining credit card payment processing solutions for it. Keep reading this blog as we discussed the main reasons accounting businesses get flagged as risky.

High Vulnerability to Chargebacks

Accounting firms are highly vulnerable to chargebacks, making them high risk. Chargebacks occur when a customer reaches out to his/her bank for a refund on the services or products provided. This is dangerous for accounting businesses, as your bank may penalize or freeze your corporate account while waiting for you to pay the refund. If there’re enough chargebacks within a certain time period, the chargeback rate will increase. This has the potential to lead to the business or even your merchant account to be put on hold for a while or completely shut down.

High Ticket Sizes and Fluctuations

Running a business in this world often leads to a high amount of sales in a short period of time which sounds great for you but not ideal for the processor. This is the reason, it is hard to track fraud and ensure your transactions are secure when you go over a specified limit. Banks like consistency and accounting is anything but. Also, during high times such as tax season, you’ll be processing so much more than usual. This happens in both quantity and amount charged. Processing like this required high risk ach merchant account that will mitigate this risk.

Mail/Telephone Order Payment

Many accounting companies want to offer credit card processing over the phone or through emails. Though this transaction type is extremely common in this field, it tends to be a less secure form of payment and it’s more difficult for businesses to track the ins and outs of these expenses. These types of order payments tend to have fewer processes in place to detect and respond to credit card fraud prevention for merchants. Because banking partners prefer businesses with tangible items, it becomes impossible for accounting firms to find the best high risk merchant account credit card processing provider support.

So, choose any easy, supportive accounting merchant service who understands the importance of maintaining a lucrative business. Click to know more!

High Risk Holdings offer your high risk merchant account Shopify means you can get free integration with Shopify platform.

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