Merchant Accounts for the Riskiest Industries

Most of the 10 industries that market research firm IBISWorld has identified as the riskiest are in in a constant change and still adjusting to the changing market conditions caused by the recession.

The overall risk score calculation of the mentioned riskiest businesses is based on the risks pertaining to industry structure (structural risk), expected future performance (growth risk), and economic forces (sensitivity risk). 1 represents the lowest risk and 9 represents the highest.

Even if you’re involved in a high risk industry and have a difficult time opening a merchant account, a reputable payment processor that specializes in the field can help you overcome the challenges with ease. With a respectable processor, you can easily get approved for high risk merchant accounts and be able to take your business to new heights.

Recordable Media Manufacturing (Risk Score 7.24)

Risks: Digital media formats and online streaming

The revenue was forecast to fall at an average annual rate of 3.9% to $3.2 billion from 2013 to 2018.

Appliance Repair (Risk score 7.17)

Risks: Strong external competition

The revenue was expected to fall an annualized 1.5% to $3.4 billion from 2013 to 2018.

Leather Tanning and Finishing (Risk score: 6.65)

Risks: Revenue volatility and high import activity

The revenue was expected to fall an annualized 1.9% to $1.7 billion from 2013 to 2018.

Fuel Dealers (Risk score 6.54)

Risks: Revenue volatility

The revenue was anticipated to increase an annualized 2.2% to $51.3 billion from 2013 to 2018.

Commercial Banking (Risk score: 6.33)

Risks: High regulation and increasing external competition

The landscape for commercial banks was projected to significantly improve, with revenue growing an annualized 7.4% to $725.0 billion from 2013 to 2018.

Major Household Appliance Manufacturing (Risk score 6.25)

Risks: High input costs, such as those of steel and plastic, and rising imports.

World steel prices were anticipated to grow an annualized 1.8% from 2013 to 2018.

Business Certification and IT Schools (Risk score 6.16)

Risks: Rising competition from junior colleges, trade schools and universities 

The revenue was forecast to continue declining at an average annual rate of 5.6% to $2.1 billion from 2013 to 2018.

Gasoline and Petroleum Wholesaling (Risk Score 6.05)

Risks: The revenue and risk level depend on global crude oil prices

The revenue was expected to increase at an annualized rate of 2.5% to $439.5 billion from 2013 to 2018.

Apparel Knitting Mills (Risk score: 5.99)

Risks: Most operators are outsourcing labor-intensive production to countries with lower labor costs

The revenue was anticipated to continue falling at an annualized rate of 3.1% to $412.0 million from 2013 to 2018.

Newspaper Publishing (Risk score 5.95)

Risks: High and rising competition from other forms of media, particularly digital outlets 

The revenue was expected to continue falling through 2018, at a slower annualized rate of 3.7%, to $27.7 billion.

Don’t let the risks existing in your industry hold you back from growing your business. Turn to an experienced and reliable payment processor to get the best for your business wants and needs.

Author Bio: Electronic payments expert, Blair Thomas, co-founded eMerchantBroker in 2010. His passions include writing/producing music, and travel. eMerchantBroker is America’s No.1 high risk merchant accounts company, serving both traditional and high-risk merchants.