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Opening Up A High Risk Merchant Account



It's really up to the payment processor, whether to label a business high risk or not . Processors at certain times will have a hearty risk appetite and at other times they will not even consider a high risk merchant. The bottom line is this, when a business owner applies for a merchant account, the PSP ( Payment Service Provider ) will assess the risk in engaging in business with you.

On the other hand, there are also some typical ways for considering a business to be high risk. PSPs will want to scrutinize your processing history, look at your chargeback ratios, your average ticket, look closely at your financials ( if you are a start-up), and want to verify your yearly or monthly sales volume. Merchants who have had their merchant account terminated or suspended are almost always considered high-risk, as well as merchants that have a chargeback ratio that exceeds the credit card schemes threshold.

A number of industries by nature are designated as high risk. Travel, dating, gambling, credit repair, forex adult, nutraceuticals, telemarketing are just a few examples of those industries that are deemed high risk. If your industry vertical falls under one of these categories, there is a good chance that you will need to use a high-risk payment processing company.

To offset the risk, your rates and fees structure will be more costly than the low to medium risk merchants. For the high risk merchant ,it's not surprising to see the enactment of a set- up fee, a chargeback fee, a Rolling Reserve and a higher Merchant Discount Rate. Additionally you will be charged a slightly higher fee for transactions.


You will want to join forces, with payment processors who have fraud and chargeback protection tools, use legacy equipment, offer high end customer support, are familiar in dealing with multi- currency accounts, comply with PCI DSS regulations and who are presently working with numerous high risk merchants.

U SWIPE checks all of the above boxes above and can offer you the customized services that you as a high risk merchant require. Give us a call today, so that we can discuss matters further and help your business reach its full potential.


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