The web hosting industry is often classified as high-risk for several reasons. It is also why most financial institutions and P2P giants (like PayPal and Stripe) avoid extending their services to this sector. The reasons why web hosting business is considered high-risk are:

• Free Trials: Web hosting companies frequently offer free trials that convert into paid subscriptions. This practice can attract chargebacks from customers who might dispute charges after the trial period, adding to the industry's risk profile.
• High Rates of Fraud or Chargebacks: The web hosting industry has historically experienced higher-than-average rates of fraud or chargebacks, further solidifying its status as a high-risk industry. Payment processors tend to be cautious when dealing with businesses in such sectors.
• Recurring Billing: Web hosting services often involve recurring billing for monthly or annual subscriptions. Traditional payment processors tend to view this as high-risk due to the potential for subscription cancellations or disputes.
• High-Ticket Sales: Web hosting companies may also offer high-cost services or packages. This increases the risk of substantial losses from individual instances of fraud or chargebacks, contributing to the industry's overall risk assessment.
• Bad Credit: Similar to personal finance, businesses in the web hosting industry that have bad credit or limited credit history can lead to a high-risk classification. This can affect the industry's ability to secure traditional payment processing services.

These factors collectively contribute to the web hosting industry's high-risk classification, making specialized merchant services essential for businesses in this sector. Host Merchant Services has unrivaled knowledge and experience in the hosting industry.

With more than a decade of running a successful hosting company, HMS has an edge in understanding credit card processing for hosting companies. Host Merchant Services has a network of web hosting companies as partners, giving the company a backbone of support throughout the industry.

A web hosting merchant account is crucial for businesses providing web hosting services. To set up such an account, the following requirements must be met:

• Identification documents for the business owner, including permits, licenses, and an EIN.
• A voided check or a letter from the business's bank.
• Three months of business bank statements showing the company name, total sales, chargebacks, refunds, and returns.
• Incorporation documents.
• An SSL certificate for the website to secure customer transactions and comply with PCI standards.

Meeting these requirements ensures web hosting businesses can establish a merchant account, securely process payments, and maintain smooth operations.

Host Merchant Services offers a partnership program that enhances Web Host companies by allowing them to offer our merchant services quickly and easily to your company’s end customers. Once you partner with Host Merchant Services, we do the heavy lifting to get your customers to utilize payment processing services while you share in the revenues. The Partnership Program includes:

• The same Great Low Rates that Host Merchant Services Guarantees
• A Specific Website tailored to your hosting company’s individual goals and branding to run merchant applications through
• No work on your part, as we review and approve all applications
• E-Commerce Tools to help your end customer process quickly and affordably
• SEO and Marketing Campaign Assistance

Integrity. Trust. Service.

Host Merchant Services offers significant benefits for web hosting industry professionals. Their custom-built E-Commerce package integrates several key components: Payment Gateways, Virtual Terminals, Online Shopping Carts, and Mobile Payment Technologies.

The company's fee structure is highly competitive, backed by the Host Merchant Services Guarantee. This guarantee includes a Free Rate Analysis to show potential savings, a promise to give a $50 Gift Card if savings can't be achieved, and an industry-leading Interchange Plus Pricing Model. Additionally, Host Merchant Services offers a locked-in rate that won't increase over time.

In terms of customer service, Host Merchant Services stands out by offering personal service and clarity, explaining how payment processing works, and providing 24x7x365 Customer Support. Live operators are always available to handle calls, and Host Merchant Services guarantees any problems will be resolved.

To ensure transaction security, Host Merchant Services has a PCI Compliance Initiative, a Data Breach Security Insurance Program, and an Integrated Payment Tokenization Program designed to protect its customers.

Ready to streamline your web hosting business? Partner with Host Merchant Services today and experience secure and reliable payment processing tailored to your industry needs. Focus on growth while we handle your financial transactions seamlessly. Reach out now to embark on a partnership that guarantees integrity, trust, and service excellence.