Everything You Wanted to Know But Were Afraid to Ask About High-Risk Merchant Accounts

Everything You Wanted to Know But Were Afraid to Ask About High-Risk Merchant Account

A blog about all the details of high-risk merchant accounts

High-risk merchant account let businesses avoid credit card processing fees. High-risk merchant accounts are for organizations with a history of chargebacks, fraud, or poor customer service. These businesses are high-risk because they don’t observe contract rules.

High-risk merchant accounts are for businesses that sell dangerous goods or services. This includes alcohol, firearms, and adult-only content. It could also indicate construction and industrial enterprises, where consumer disputes are common.

Bad-credit firms can get high-risk merchant accounts because they’re more likely to not pay their invoices.

What Are High-Risk Merchant Accounts?

  • High-risk merchant accounts are utilized by firms that sell to customers who may not pay. They’re for merchants with chargeback issues.
  • Depending on your business, high-risk merchant accounts may be worth the price.

Who Needs a High-Risk Merchant Account?

  • You may be a “high-risk merchant” if you sell online or by phone. “High-risk merchants” are businesses prone to fraud or chargebacks.
  • Customers dispute credit card charges when they don’t recognize them or suspect they’re fraudulent. Disputes can cause hidden expenses for businesses that sell goods. We’ll explain afterward.
  • High-risk merchant accounts can be accepted, but they have higher fees and fewer limitations. High-risk retailers sell to minors or cigarette items.
  • These businesses tend to pay late or not at all, so traditional credit card processors turn them away.
  • High-risk merchant accounts aren’t as prevalent as other sorts because they have limits and fewer alternatives.
  • High-risk merchant accounts include dating, cigarettes, firearms, and adult entertainment businesses. These industries are more prone to fraud, so they need stricter protection.

Online gambling and gaming sites can have high-risk merchant accounts. Hackers try to persuade sites to withdraw money from the company’s bank account without permission. This can lead to unauthorized charges. Unchecked, these charges can lead to bankruptcy.

Consider how many credit card transactions each method processes. This helps determine if your firm is high-risk (e-commerce orders, phone orders, etc.). If you sell online and have hundreds of thousands of repeat customers, you may need a high-risk merchant account.

How Do High-Risk Rates Work?

High-risk rates are usually higher than ordinary rates since the processor takes on greater risk with high-risk businesses. Even if the business is making money, it may not be able to pay credit card fees. Working with these companies costs more, therefore merchants pay more to process payments.

If someone could sue you or dispute your products or services, most processors will consider your organization high-risk.

How Do I Get a High-Risk Merchant Account?

  • Start by finding a high-risk processor. Many processors provide different plans and services, making it challenging to choose.
  • If you don’t know where to start, search online or talk to other business owners.
  • Make sure your firm is in good standing before applying for a merchant account (the IRS, etc.). This makes it easier to check corporate information and apps with third-party sources.
  • Once approved, the processor will set up an account so you can accept credit card payments from consumers worldwide.

How Long Does it Take to Get a High-Risk Merchant Account?

It depends on the processor, but most processors for high-risk merchant accounts can approve you in 72 hours or less. Some of them can even let you in after just a few hours.

What Happens if I Don’t Use a High-Risk Processor?

If you don’t use a high-risk processor, you might have to deal with the following:

  • You will have to pay more.
  • You might not be able to accept some kinds of payments (such as cash and checks).
  • Your bank or credit card processor could shut down your business if they don’t like how risky it is to do business with you.

Keeping this information in mind will help you find the best merchant account for your business.

Check your business’s prices. High-risk account processing costs are usually higher but can include added rewards. Know what each service provider offers and if it’s worth it.

Consider adding extras. Most high-risk suppliers offer 24/7 customer service or fraud-prevention measures like AVS or ID verification. Extra features may not be necessary for your business, but they could be worth the investment if they reduce chargebacks or increase customer satisfaction.

First Data Payments Network offers tiered pricing to ensure you get the best interchange rates (FDPN). Tiered pricing lets retailers with fewer monthly transactions pay less. Smaller retailers won’t pay as much in monthly fees because they sell fewer items.


Hopefully, now you understand high-risk merchant accounts and know what to check for in your firm. With a high-risk merchant account, your business can offer riskier products or services online. Despite your best efforts, something unexpected may occur. This is why it is so vital to have the proper people on your side. A high-risk merchant account is easy and has many benefits. If you want secure, reliable and 24*7 customer service in your high-risk processor then you have to Call PayPound at +44 800 832 1733 or email sales@paypound.ltd for a high-risk merchant account. Join our Paypound.ltd LinkedIn Page!

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