Web hosting businesses are considered high risk for a number of reasons. Web hosting merchants provide a service that does not have a physical product which makes it very difficult to follow up in the case that the customer says that they never received the service. Online service businesses also are the targets of fraud. This is the other reason why web hosting businesses are considered high risk and require a high risk merchant processor. Web hosting businesses provide a number of services online in addition to web hosting. These services include; domain registration, web design and logo design. All of these online services have no physical product and usually most of them, unless there is a large project does not require a signed contract which adds to the risk.
Web hosting merchants will be able to perform a number of services once they are setup with a high risk merchant account. Merchants will be able to process orders mainly, usually phone orders by using the virtual terminal. Customers are able to easily integrate the payment gateway with their website and shopping cart easily and quickly. Offshore Merchants offers an easy to integrate API for the web hosting company’s webmaster. The web hosting merchant will be able to setup merchants with recurring billing for ongoing services that are provided to the customers.
Offshore Merchants has been setting up web hosting and online services companies with merchant accounts and payment processing solutions since 2007. These merchants are able to process their orders from their clients and receive payouts into their business bank account. Most web hosting merchants are able to be setup with a high risk merchant account within 1-2 weeks while receiving setup of the account a few days afterwards. Web hosting merchants are able to put together their documentation and send it to Offshore Merchants along with their merchant account application.
Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.