Should a high volume high risk merchant ever use a third party credit card processor? The short answer is no. The longer answer is absolutely not. Amazingly, there are merchants that are processing millions of dollars per month using a third party merchant account. These merchants are throwing away money in ridiculously high fees. Additionally, long settlement times result in the merchant waiting for money. In the meantime, the third party processor sits on the money and collects extra cash from the float. How silly is it that a merchant would let a third party collect the settlement funds from the bank first? A middleman that dramatically increases the risk that that the merchant will never receive the money. There are some decent third party processors around. Not many. But a few. For every one third party processor still standing there were ten that folded. Went down in flames. In most of the cases, taking all of the merchant's money down with them. Any decent merchant that is doing the business the right way can get a dedicated merchant account directly with a bank. Sure, it takes a little more time and a little more paperwork. But, honestly, think about hard you've worked to establish and grow your business. Isn't it worth tiny bit of extra effort to protect the credit card processing of your business.
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