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Understanding What Is A High Risk Merchant Accounts

A high-risk merchant account is an account that is created for businesses that have a higher chance of fraudulent activity. This type of account is not necessarily more expensive than other types of accounts, but it does come with limitations in some cases. There are several reasons why your business may be considered high risk, including having bad credit history or not having any credit history at all. Additionally, if you have had problems with chargebacks before then this will also increase the likelihood that your business will be considered high risk.

What Is A High Risk Merchant Account

A high-risk merchant account is a type of credit card processing account that is offered to businesses considered to be higher risk by the issuing bank. These types of businesses tend to have a higher rate of fraud and chargebacks, which makes it more difficult for them to obtain traditional merchant services.

High-risk merchants are those who sell products or services that can easily be counterfeited or stolen, such as tobacco products, pharmaceuticals and adult entertainment. Other types of businesses may also be considered high risk if they have a large percentage of chargebacks or fraud issues.

If your company has been deemed high-risk by one or more major credit card issuers (Visa, MasterCard and American Express), you’ll need to work with an expert provider in order to find a suitable solution for accepting payments from your customers.

Why Are Some Businesses Considered High Risk

In order to get approved for high risk merchant accounts, you must be able to answer these questions.

  • How is your business classified as high risk?
  • What does that mean?
  • Who do you need to talk with in order to get an answer?

What Types Of Businesses Does This Affect The Most

There are many types of high risk businesses, but they all have one thing in common. They involve selling products or services that are considered to be morally questionable. This could be anything from pornography or gambling to illicit drugs. It’s also common for businesses that deal with one of the following to be considered high risk:

How do we know which credit card companies are best for high risk businesses? There are many different factors that go into choosing a merchant services provider, but two of the most important ones are price and reliability. You want to make sure that your payment processing company is reliable because if they aren’t, then you won’t be able to accept any payments at all.

High risk merchants include:

  • Adult entertainment
  • Gambling
  • Pornography
  • Telemarketing
  • Pharmaceuticals and Cosmetics/Drugs/Tobacco


You can still accept payments. If you’re a high risk merchant, that doesn’t mean that you have to stop accepting payments completely. You can still work with a payment processor and get a credit card terminal (or an online payment gateway) to help you process your transactions.

If your business is considered high risk, there are still options available for accepting payment. The most common option is to use a third-party service provider that handles payments on behalf of the merchant. This can be done through either a credit card processor or an ecommerce service provider. However, these services come with additional fees that may make using them unappealing if you don’t have much volume going through them each month (and therefore no need for bulk discounts).


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