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High-Risk Credit Card Processing and Merchant Accounts

High-Risk Credit Card Processing and Merchant Accounts

Find out more about credit card processing with high risk as well as merchant account, including their advantages and disadvantages, as well as what businesses require one.

  • Credit card processing with high risk and merchant accounts provide reliable payment processing to businesses with an extremely high percentage in chargebacks as well as refunds.
  • Chargebacks that are excessive, usually greater than 0.9 percent on your purchases, could instantly put you into the high-risk category.
  • Credit card processing with high risk and merchant accounts may offer different currencies of support as well as chargeback security.
  • The article was written intended for entrepreneurs who are in high-risk industries and have a significant percentage of chargebacks and want to consider the use of payment processing services.– If your business is in an industry segment or has an excessive chargeback or refund ratio, it could be deemed to be high-risk. Yet, many business owners don’t know they’re high-risk until they apply to open a merchant account in order to handle their monthly transactions using ACH as well as debit and credit cards.

As per Bankcard, chargebacks increase by 41 percent each two years and is a danger that must be on the radar of every business owner. Chargebacks don’t have to be a result of fraud, they also be caused by common cardholder complaints, like “merchandise was not as described” or “the merchandise was not received.”

If your business is refused an account for merchants from traditional banks It can be a challenge to navigate the high-risk merchant account providers. Learn more about the basics and expert advice to help you select the best service for your business.

How do I find a risky business account?

A high-risk merchant account can help high-risk companies, regardless of their business or industrial practices are able to access the top payment processing options.

If your company has many refunds and chargebacks each month, you could be in the position of having a reserve that is rolling on your account. This could help to cover issues with transactions and also fraud.

High-risk vs. low-risk merchant accounts

When you are applying for credit card processing or a merchant account, you’ll be required to decide if you’re a low-risk business or one with a high risk. Although merchant account providers typically classify businesses in one category or the other category, a variety of elements can distinguish the two.

High-risk merchant account

Your history with processing and more specifically your chargebacks can place you in the high-risk category. Merchant account providers may include their own specific characteristics on the list however, these are some of the ones that could be considered to make your business high-risk

  • A minimum of $20,000 per month in monthly sales
  • Credit card transactions that are on average greater than $500
  • Companies in countries that are known for the high level of fraud
  • Credit history with poor credit
  • Frequent chargebacks

Low-risk merchant account

A low-risk company may have to satisfy a variety of requirements; but the most crucial are low revenues small transactions, very low charges and returns. These are other characteristics of a low risk merchant:

  • Credit card transactions must be $500 or less.
  • Total transactions are less than $20,000 per month.
  • The market is considered to be low risk including essential goods like clothing, household, and baby products.
  • The chargeback percentage is minimal – less than 0.9 percent of all transactions.
  • Businesses are conducted in low-risk areas , such as those in the United States, Europe, Japan, Canada and Australia.
  • The return rate is not high.

What kinds of companies require account with high risks for merchants?

What is it that makes a business risky?

Here are some reasons that your company could be deemed high-risk.

  • Business that is new:If the company you operate was just established, it isn’t able to give a detailed information about your transactions to the bank.
  • Insufficient the transactions The merchant’s account company has to determine your chargeback percentage. If you aren’t able to make enough transactions per month to get an average score This could place your company in the high-risk category.
  • Type of industry: Certain industries – like gambling, travel and adult sites are known for their excessive chargebacks due to the high amount of cancelations.
  • Many refunds, chargebacks and fraud If your business has accumulated a significant amount of transactions per month the risk increases in the event that you have a large percentage of chargebacks, refunds or fraudulent transactions.

Pros and pros and


There are many benefits to having merchant accounts with high risk:

  • Opportunities for long-term growth
  • More profits
  • Acceptance of different currencies
  • High-chargeback protection
  • Reserve an account for unexpected chargebacks
  • The processing of transactions made with credit cards, even when you have poor credit or setbacks in financial transactions


Here are some disadvantages of a merchant with a high risk:

  • More processing costs
  • A reserve account may be required that could be up to 50 percent of the monthly volume
  • Rolling reserve can be held for up to 180 days following account closing

What should you consider when searching for a high-risk retailer

If you’re looking for the best merchant account for high risk you’ll find that there are a variety of choices available. It is important to conduct your study before deciding on one, since it will influence the time you’ll be spending reviewing transactions, and the effect it will affect your financial future.

Here are some of the features to look out for when you choose an extremely risky credit card processor:

  • Support that is timely:Any bad transaction through your website could result in issues which can escalate quickly. Select a service that provides an active support system and will have your support when you have a problem.
  • Payment options that you can customize: Your provider should be able meet your unique business requirements through the use of custom payment options that can accommodate various payment scenarios.
  • No hidden charges:Make sure you are informed of all costs prior to the time of purchase. The cost for a monthly higher-risk card transaction merchant account can be accessible on the site of the service provider. However, in the absence of this, a simple chat or call will be able answer all your questions.
  • Modern technological advances: Your payment partner should be aware of current trends in payments and have an API that is open. Onboarding should be smooth and take no more than a couple of days instead of weeks. Avoid payment processors with outdated websites with frequent downtimes, and do not have the necessary technical expertise to satisfy your business’s needs.
  • Tools to prevent fraud: As high-risk account are the most susceptible to fraudulent actions, you should look for an account with improved security measures, including the prevention of chargebacks and multifactor authentication.
  • market leadershipChoosing an account with a higher risk may take some long, and you’ll should also take into consideration the time required for the onboarding process and for customizing. A reputable business will protect not just your time but also your cash.
  • Customer assistance: If your business has a particular industry, several industries, or the variety of nations, choose a credit processor which can satisfy the needs of each business. Support for country and industry is available via the website.

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