What to Know About High-Risk Merchant Accounts
A high-risk merchant account is considered less reliable by merchant service providers, and many will hesitate to provide credit card processing to them because they don’t want to suffer great losses. There are multiple things that can make providers see your account or business as high-risk. What exactly is a high-risk merchant account, and what are the consequences of having a high-risk merchant account?
Is my business considered high-risk?
There could be many reasons why account providers have denied you. First of all, your business may be in a high-risk industry. These industries are considered high-risk because they incur a lot of chargebacks or receive unusually high chargebacks. Some carry reputational risk as well. The following industries are a few examples known for their high-risk track record:
- Adult and online dating companies
- Cigarette, e-cigarette, and tobacco
- Bail bonds
- Financial services, including credit and debt-related services
- Multi-level marketing
- Real estate
If you operate a business out of your home or on an online storefront (such as Amazon, Google, or eBay) you will likely need a high-risk merchant account.