What is a high-risk merchant account?

A high-risk merchant account is a subset of services that allow businesses in high-risk verticals to accept card payments from customers. These accounts typically come with stricter requirements and stipulations than standard merchant accounts and will be costlier to maintain.

What is considered a high-risk transaction?

A high-risk transaction involves a higher probability of fraud or chargebacks, often occurring in industries known for their regulatory issues, financial instability, or the likelihood of disputed purchases. This can include transactions in sectors like adult entertainment, gambling, and eCommerce.

What are the rates for high-risk merchant accounts?

Providers specializing in high-risk merchants typically charge higher-than-average fees and demand strict contract conditions. A few providers specialize in backing merchants that even other high-risk processors have turned down. Naturally, the fees and contracts these companies require tend to be more strict than conventional merchant processing.

Is high-risk payment processing legit?

Yes. Even with all the downsides, some merchants prefer â or at least are willing to accept â working with a high-risk merchant account. Many verticals represent significant earning opportunities if youâre willing to accept the higher risk and profit withholdings that come with them.

Why do you need a high-risk merchant account?

You might need a high-risk merchant account if your business operates in an industry prone to high chargeback rates, has a history of financial instability, or deals with high-value transactions. These accounts are specifically designed to manage the increased risk and provide the necessary support to process payments securely, despite the challenges inherent to your business sector.

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High Risk

High-Risk Merchant Account

Have you been rejected for a merchant account because you’re in a “high-risk” vertical? This article will explain the ins and outs of high-risk merchant accounts and processing. We’ll explore the added costs and barriers faced by high-risk merchants and why they may pay more to process payments. Finally, we'll identify some service providers that can help those operating in high-risk verticals.

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