High risk Merchant Accounts

Some businesses are considered “high risk” by credit card companies like Visa and MasterCard. This means it is more difficult for them to get a regular merchant account. These businesses often have high sales, but also face more chargebacks, refunds, or fraud risks.

If your business falls into this category, you will need a high risk merchant account to accept credit card payments online.

What Is a High Risk Merchant Account?

Understanding the Term

A high risk merchant account is a special type of account designed for businesses that are more likely to face financial risks. These risks include:

• More frequent chargebacks

• Higher refund rates

• Risk of fraud

• Legal concerns related to certain industries

Because of these risks, credit card processors charge higher fees for high risk accounts compared to regular ones.

Who Needs a High Risk Merchant Account?

Many industries are labeled as high risk. Some common examples include:

• Online pharmacies

• Telemarketing businesses

• Infomercials

• Online travel agencies

• Dating websites

• Gaming websites

• Replica product stores

Some of these businesses are riskier than others, but they all need a special payment solution to handle credit card transactions.

Why It’s Hard to Get Approved

It is often difficult for high risk businesses to get approved by banks or payment processors. This is especially true for non-US merchants or new businesses with no processing history.

However, it is not impossible. With the right service provider, you can still get approved and start accepting credit card payments smoothly.

Offshore and International High Risk Solutions

What Are Offshore High Risk Merchant Accounts?

Many high risk businesses choose to open offshore high risk merchant accounts. These accounts allow you to accept credit cards and receive funds in offshore bank accounts.

The setup requirements are a bit stricter, and the fees are higher, but these accounts provide privacy and flexibility for international merchants.

Requirements for a High Risk Merchant Account

If your business is considered high risk and you want a direct merchant account, you may need to meet these requirements:

1. Business Incorporation

Your company must be registered in the same country as the bank offering the merchant account.

2. Processing History

It helps if you have at least 6 months of payment processing history, showing stable transactions.

3. Low Chargeback Rate

Your chargeback ratio should be under 2% in the past 6 months.

4. Set Up Fees

You must pay all required fees to start the account.

5. Documents

You need to provide key documents, such as:

• Owner’s passport

• Business incorporation papers

• Sometimes, nominee director’s documents and utility bill (for legal and banking purposes)

6. Website Compliance

Your website must follow all Visa and MasterCard guidelines for high risk merchant websites.

Other Merchant Account Options

Third Party High Risk Merchant Accounts

If you don’t have a registered company, or you want to avoid setup costs and paperwork, you can use a third party merchant account. These accounts are:

• Easier to get

• Faster to set up

• Less strict on requirements

However, they may have higher processing fees and offer less control over your payments.

Offshore High Risk, International, and High Volume Accounts

Depending on your business type, you might also consider:

• Offshore high risk merchant accounts for privacy and flexibility

• International merchant accounts if your customers are outside the US

• High volume merchant accounts if you process large numbers of transactions each month

All of these accounts help you accept payments online safely and legally.

Start Accepting Payments Today

If your business has been labeled as high risk, don’t worry. We specialize in helping merchants just like you get approved for the right payment solution.