High Risk Merchant Accounts for Businesses in Canada, India, US, and the UK
Any business that wants to accept credit card and/or debit card payments from its customers needs a merchant account, however, for the business that falls into the ‘high risk’ category, getting a merchant account can be difficult.
Traditional merchant account providers tend to avoid high risk businesses because of the inherently increased likelihood of chargebacks and credit card fraud. Fortunately for businesses that fall into this category, high risk merchant accounts are available to meet their credit card / debit card payment processing needs.
What is a High Risk Merchant Account?
A high risk merchant account is a type of merchant account specifically for businesses deemed to be ‘high risk’ for one reason or another. Just like traditional merchant accounts, they enable businesses to accept credit card, debit card, and eCheck payments from customers. Payment processors that offer high risk merchant accounts often charge higher rates and may require a “rolling reserve” – a percentage of sales that is held in reserve and used to offset any chargebacks. While this rolling reserve is eventually returned to the merchant, it can have a noticeable impact on the merchant’s cash flow.
That’s where High Risk Pay Solution comes in. We negotiate aggressively with our network of high risk merchant account providers to secure businesses the best possible rates and most favorable terms.
Why are Some Businesses Considered ‘High Risk’?
Since merchant account providers are financially liable for merchant losses, they are understandably cautious when it comes to approving businesses deemed ‘high risk’. There are any number of reasons why a merchant services provider may consider a business to be high risk. Some of those reasons include:
- Risky or heavily regulated industry
- History of chargebacks
- Irregular and/or high ticket sales
- Bad or no credit
- Significant number of Card Not Present (CNP) transactions
- Inclusion on the TMF or MATCH list
- Offshore business
- New business with no financial history
- Previous merchant account denial or termination
What Types of Businesses are Considered High Risk?
Of the risk factors listed above, the one that merchant processing providers are most concerned with is the likelihood of chargebacks. This includes legitimate customer refunds as well as fraudulent transactions. Types of businesses that are typically considered to be high risk include:
- Adult services and products
- Debt collection
- Firearms / weapons (includes ammo and parts / accessories)
- Gambling, gaming, and casinos
- General ecommerce
- High ticket sales (e.g. antiques, jewelry, vehicle sales, etc…)
- IT / technical support
- MOTO / direct sales
- Online pharmacies
- Tobacco / e-cigarettes / vape
- Travel services
- Web design / SEO
High Risk Pay Solution Can Get You the Merchant Account You Need
It doesn’t matter if you operate a high risk business, been recently declined, or even had a previous merchant account terminated. Our team of merchant services experts have helped hundreds of high risk businesses throughout Canada, India, the US, and the UK secure the merchant services they need and we can do the same for you. Quit leaving money on the table and start accepting credit cards today. We never charge an application fee or annual fee. Apply online or call us at 855-736-6460.