Who Wants a High Risk Merchant Account?

Merchant accounts are required in order for a business to just accept credit card payments. As a merchant, there are two places you possibly can get hold of a merchant account; a bank, or a third party provider. For online gaming merchant account rates retailers the most popular, and in most cases cost efficient, supply is from a third party service provider account provider.

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


Fraudulent Transactions

High quantity of gross sales

High rate of refunds

High rate of charge-backs

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

Merchants Location – Some merchant account providers is not going to accept merchants from certain countries.

The Product/Service the service provider sells is against the law in some jurisdictions.

Service provider Credit History – Some suppliers is not going to settle for retailers with poor or no credit history.

Because of the high risk classification, most banks will not provide a merchant account to these in a high risk industry (akin to adult entertainment, duplicate items, pharmacy and so forth). As such some third party providers offer their companies to both normal retailers and high risk merchants.

Service provider account suppliers that have been developed to service high risk merchants will usually present a higher level of fraud safety, so as to decrease the fee their merchants incur. Nevertheless, to be able to cover the higher degree of risk, rates for a high risk service provider account will always be higher than their decrease risk counter-parts.

When searching for a high risk service provider account, there are a number of factors that you must take into account. Rates can be one of the essential factors, and this consists of charges for refunds and charge-backs, along with transaction fees, the discount rate and ongoing fees. Then you have to to think about fraud protection, customer service and reporting available to you as a merchant.