Who Needs a High Risk Merchant Account?

Merchant accounts are required in order for a enterprise to simply accept credit card payments. As a merchant, there are places you possibly can obtain a service provider account; a bank, or a third party provider. For online gaming merchant account rates merchants the most popular, and in most cases price efficient, supply is from a third party merchant account provider.

A high risk merchant account is required by companies that, when compared to a ‘traditional’ items/providers business, are at a higher risk of:


Fraudulent Transactions

High volume of sales

High rate of refunds

High rate of cost-backs

Other reasons a service provider may be categorized as a high risk are:

Retailers Location – Some merchant account suppliers will not settle for retailers from sure countries.

The Product/Service the merchant sells is illegitimate in some jurisdictions.

Service provider Credit History – Some suppliers will not accept merchants with poor or no credit history.

Due to the high risk classification, most banks won’t present a merchant account to these in a high risk business (similar to adult entertainment, reproduction goods, pharmacy and many others). As such some third party suppliers supply their services to both normal retailers and high risk merchants.

Merchant account providers that have been developed to service high risk retailers will typically present a higher stage of fraud protection, so as to decrease the cost their merchants incur. Nonetheless, to be able to cover the higher level of risk, rates for a high risk service provider account will at all times be higher than their lower risk counter-parts.

When in search of a high risk service provider account, there are a number of factors that it is best to take into account. Rates might be probably the most important factors, and this contains charges for refunds and cost-backs, together with transaction fees, the discount rate and ongoing fees. Then you will need to think about fraud safety, customer service and reporting available to you as a merchant.