Businesses operating in a regulated market often encounter payment-related challenges. Among these, peptide sellers and online casinos are two industries frequently flagged by processors. While they differ in nature, they share a common challenge: securing a reliable merchant account. Here are 5 reasons these high-risk verticals face issues with payment processing:
1. Regulatory Ambiguity
Products like peptides fall in the regulatory gray zone. While they are classified as research chemicals, concerns have been raised regarding compliance. It can trigger scrutiny from both regulators and merchant service providers.
2. Tricky Licensing Processes
With businesses like online casinos, a strict legal framework is often in place. It can vary by jurisdiction and may result in account rejections, suspensions, or complete terminations. Missing licenses, operating in restricted areas, or failing to comply with AML (Anti-Money Laundering) standards are common concerns.
3. Higher Chargebacks
High-risk industries can have higher chargeback rates. For instance, peptide vendors can face frequent disputes due to customer dissatisfaction or misunderstandings. This puts the account at a constant risk, which many merchants dislike.
4. Risk of Fraud
Businesses like gambling platforms or those selling peptide products can have major concerns about fraud. Buyers can often use stolen credit cards, putting these businesses at risk of being an easy target for fraud rings. Besides, not having a strong KYC system is even riskier.
5. Processor Reputation
Mainstream payment processors or traditional banks often prefer not to associate with industries that may have legal and ethical concerns. It can tarnish their reputation, so they avoid offering peptides merchant accounts.
It is the same with offering a merchant account for online casinos. Not only is there compliance pressure, but also reputational concerns, which force processors to flag such businesses.
The Bottom Line
Whether you sell peptides or run an online casino business, the key to overcoming challenges lies in working with the right partner. Ensure they specialize in your specific industry and aren’t a liability to you. Additionally, incorporate transparent refund policies, maintain all necessary licenses, display relevant compliance standards on your platform, and invest in effective fraud prevention measures. Also, get in touch with a reliable and reputable merchant account service provider to get solutions that support your long-term success.