Who Wants a High Risk Merchant Account?

Merchant accounts are required in order for a business to simply accept credit card payments. As a merchant, there are two places you may obtain a service provider account; a bank, or a third party provider. For online gaming merchant account rates merchants the most well-liked, and in most cases cost efficient, source is from a third party merchant account provider.

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


Fraudulent Transactions

High volume of gross sales

High rate of refunds

High rate of charge-backs

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

Merchants Location – Some service provider account providers won’t settle for retailers from certain countries.

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

Service provider Credit History – Some suppliers won’t settle for retailers with poor or no credit history.

Due to the high risk classification, most banks is not going to provide a merchant account to those in a high risk industry (akin to adult leisure, duplicate goods, pharmacy and so forth). As such some third party providers supply their services to both common retailers and high risk merchants.

Service provider account providers which have been developed to service high risk retailers will typically provide a higher level of fraud protection, so as to decrease the associated fee their merchants incur. However, to be able to cover the higher level of risk, rates for a high risk service provider account will always be higher than their decrease risk counter-parts.

When on the lookout for a high risk merchant account, there are a number of factors that it is best to take into account. Rates will be one of the vital important factors, and this includes fees for refunds and charge-backs, together with transaction fees, the discount rate and ongoing fees. Then you will have to think about fraud safety, customer service and reporting available to you as a merchant.