Some businesses will have an increased rate of chargebacks, or fraud is sometimes seen as a high risk. High-risk businesses are prone to higher interest rates, waiting for financing, reserve requirements, expensive escrow rates, and many difficulties. If your company is a high-risk enterprise, you should know some truths about your high risk merchant account to run it successfully.

 Credit card processing companies are involved in solving the risk of merchants with high-risk profiles. It is possible to balance the risk in other ways that may keep the merchant from losing their account.

Types of high-risk merchants

Here is the list of businesses considered to be at high risk:

1. Telemarketing

Telemarketing businesses involved in card-not-present transactions are prone to customer disputes, fraud, and frequent chargebacks. Due to this reason, this business is considered a risk.

2. Tech support companies

These companies are at high risk due to excessive chargebacks and irregular high-volume sales.

3. Online Gaming

Online gaming is like an addiction, and it may attract all age groups. It will make the players forge their IDs. Online gaming is known-well for drug trafficking, money laundering, and cyberbullying.

4. Travel booking business

The travel booking business is a high risk due to the involvement of a high volume of customer cancellations. Moreover, there is no refund policy; in most cases, customers file for chargebacks with their card brands.

5. Nutraceutical businesses

This business is famous, and they are considered to be high-risk. It is because there are no clear regulations in this business. Even the manufacturers will be lying about the information of ingredients they have added to the products. And there are many chances to make false claims. It gave way to legal repercussions and chargebacks.

6. Cryptocurrency

Businesses in the crypto space are classified under high risk as they are dealing with the trading of cryptocurrencies. They come under high-risk industries, as these cryptocurrencies do not get regulated in most countries. Moreover, there is a chance of fraudulent activities and identity theft, which make it riskier.

5 Hard Truths About Your High-Risk Merchant Account

A high-risk business does not represent that it deals with adult products and services. But various factors are involved in placing the firms into a high-risk category. You might get surprised to learn about the five truths of your merchant account, which is at high risk.

1. Make your high-risk designation

Businesses that provide a wide range of services seem an enticing alternative. Opening a high-risk account is processed according to the rules and is straightforward. The procedure to open the account can be online, and it takes 24 hours to grant the application, thus allowing the business to run it immediately. If your account has got labeled as a high risk, then your option will be to find the best partner. 

For previous transactions you work in, your providers will not leave you to get away with a standard merchant account. Only some of these accounts are made equal. Some of them get charged and other snares at every step, whereas others may work with you to minimize the disturbance to your business and the problems associated with your merchant account risk.

2. Reducing fees and processing delays

The main advantage of this account is that it reduces the fees and processing delays of high-risk accounts. Merchant accounts with high risk can permit you to operate without your merchant account holding you back. They are allowed to function without your merchant account holding you back. There is no need to wait for long days to process your vast balances. Away from lower fees and rates, you can have quicker access to cash but with few barriers.

3. Flexible payment option

There are more payment alternatives to the merchant account having high risk compared to the regular merchant accounts. In the case of low-risk retailers, they can accept only certain types of credit card payments and not others. In comparison, high-risk merchants can allow recurring payments and offer a wide range of services and products.

Generally, high-risk merchants can handle more flexible payment options and get a large monthly payment volume without causing red lights. Their account is flexible, in the case of goods and services you offer, permitting you to run your business as you see fit instead of attempting to adapt your business to the merchant account.

4. Acceptance of international payment

More businesses are making efforts worldwide or offering goods and services to international and domestic places. In some industries, the merchant will accept only payments for their goods and services inside their country. It may be advantageous for overseas customers but not ideal for businesses with a typical merchant account. But in the case of merchant accounts, high risk makes international payments a breeze, having fewer limitations, and it may lead to worldwide development.

5. Number of payment options

A high-risk account will permit your businesses to accept various payment options, such as checks. It is highly advantageous to the company as it allows them to offer a choice of payment alternatives to their consumers. That leaves you to buy from them as simply as possible. 

Another advantage of this account is that it will protect the business from consumers who try to cheat by making fraudulent checks or using expired credit cards. A merchant account may get terminated when they get several significant chargebacks. But this will not be in the case of high-risk accounts. 

High-risk processors will protect the merchant account and keep it in good shape. It does not mean that continuously neglecting the multiple chargebacks is possible. The reason is that the providers may be aware that this may happen, they are safe, and they will not terminate their accounts because of high chargebacks.


All high-risk accounts are not created equal. When you are busy in your business, others may charge you high fees, processing delays, and other difficulties may occur. Fortunately, with the help of a financial partner, it is possible to convert risk status into an asset, reducing your costs and reducing the time to get your funds.