An indigenous solution for your high-risk business

With the constant rise in digital payments. A growing number of businesses are searching for cost-effective payment processing solutions. Only 20% of customers prefer using cash to pay.

Even though most payment service providers cater to diverse businesses. But there are always specific businesses that they are barely more cautious about. These usually belong to high-risk sectors that intrinsically bear more significant risks of fraud or chargebacks.

If your business comes into the “high-risk” category, you may stumble to find a suitable payment processor. But who decides if a business is high-risk? And what aspects specify the risk? In this article, we’ll assist you to comprehend all this and more. So you can be better ready to explore the right payment processing partner for your business requirements.

What reasons drive your business to the high-risk category?

Most payment processors like to do business only with merchants who they find safe or low-risk investments. Businesses that are regarded as high risk will have narrow choices of potential payment processors to prefer. All high-risk businesses have in common is that they like to accept credit card transactions. But they have a high prospect of facing a chargeback or a refund.

Another cause could be that they are not obliging with the security standards of the country. Or the state they’re serving in, or that the business comes under an industry with a high turnover ratio.

Banks label them as high-risk and sometimes refuse to underwrite them. Some complicated industries that are marked as high risk by payment processors are:

  • Online dating websites
  • Adult services websites
  • Forex businesses
  • Tobacco and e-cigarettes stores
  • Travel agencies
  • Medicines
  • Supplements
  • Debt collections
  • Loan services
  • Online casinos, online gaming industries
  • Telemarketing
  • Pawnshops

Whereas, these businesses are not bad, illegal, or harmful in any way. Even if they’re completely legal respective businesses, banks and merchant service providers may reject them because of the high chargeback volume and refund ratio. We could say that the major reason for considering them as risky is the reputation of the company and processing history.

What Is a High-Risk Merchant Account?

A high-risk merchant account is a type of account that enables the processing of payments in a business that is prone to getting a chargeback or a refund numerous times. They’ll also probably need to pay higher fees for high-risk merchant services. Setting up a merchant account as a high-risk company is a payment solution that will qualify your business to take credit cards.

Anybody who likes to drive sales and profits in their business should receive credit cards as a mode of payment. If they don’t, their future customers may go somewhere else to purchase the product or acquire the services they want.

Banks may also set a rolling reserve on your high-risk merchant account as a condition of security for them. It is a part of the card processed transactions volume that will be kept for a limited period.

Benefits Of a High-Risk Merchant Solution.

The benefits of a high-risk merchant solution are as follows:

  • It helps in dealing globally. You will be capable to market products or services globally but it is not enabled with a low-risk merchant account. So, it will deliver long-term growth.
  • Increment in Revenues. By having a broad range of products or services, you can increase the probability of gaining more money.
  • Chargeback Prevention. It will offer the chance of preserving your high-risk merchant account in perfect shape. For example, when a merchant transmits the chargeback ratio with a regular account or it may end up with the terminated account. So, they’ll have to search for a high-risk merchant account that delivers a chargeback prevention feature.
  • Extend Globally. If your high-risk merchant account delivers the ease of getting payments in diverse currencies and selling services or products to customers globally, then the performance of your business will enhance. However, it means that you can reach huge markets.

How to Get Approval for a High-Risk Merchant Account?

One of the main reasons to get a merchant account for high-risk businesses is to avoid the termination of your account completely. The bank may close your account and keep your money without any prior notice if you have negative risk aspects and performance. If your business is considered a high-risk one. You have to know what type of payment processors you require and which high-risk merchant account providers are ready to offer you payment processing services and fulfill your business requirements.

Signing a contract with a payment processor for a high-risk business can take more time than usual. And it always charges more. You may be glad for signing up for a standard one. But after some time, you may find yourself with a closed account.

If you get a reliable high-risk merchant account with instant approval. So, understand that they aren’t instantly available because of the additional steps concerned in the underwriting process. Your payment processor even requires registering you with the credit card brands before accepting credit cards.

Essential Things to Know When Securing a Merchant Account

There are some crucial things when it arrives at acquiring merchant accounts. The first is, to be genuine, and straightforward regarding all the facts about your business. As long as you execute a legal business. You definitely can get a payment processor that will serve you.

After searching for a reliable high-risk payment processor. You will have to fill out an online application. Risk management specialists will determine whether your business authorizes for a high-risk merchant account. And it will also be confirmed whether it’s on the terminated merchant file list (TMF).

Your chosen high-risk payment provider should be the one that has a fine track record for delivering fair quotes and reliable payment services.


High-risk merchants no longer have to worry about getting a payment provider to process their online transactions. With so many thriving high-risk businesses growing and advancing. It is easy to get a suitable payment processor.

Do your research. And talk to sales executives. Then get various quotes before finalizing the best payment provider for your business.

Picking the best high-risk merchant account provider is pivotal to your business success. Prefer providers that have a proven history of providing services to high-risk businesses. Ensure that there is complete translucency on their fees, terms, and conditions. Make sure you find a provider with the best, liable support for your business.


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