Who Needs a High Risk Merchant Account?

Merchant accounts are required to ensure that a enterprise to just accept credit card payments. As a service provider, there are two places you’ll be able to get hold of a service provider account; a bank, or a third party provider. For online gaming merchant account requirements merchants the most well-liked, and in most cases price efficient, source is from a third party service provider account provider.

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


Fraudulent Transactions

High volume of sales

High rate of refunds

High rate of cost-backs

Other reasons a merchant may be categorized as a high risk are:

Retailers Location – Some service provider account providers won’t accept merchants from certain countries.

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

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

Because of the high risk classification, most banks won’t present a service provider account to those in a high risk trade (similar to adult entertainment, duplicate items, pharmacy and so forth). As such some third party providers provide their providers to both basic retailers and high risk merchants.

Merchant account suppliers which have been developed to service high risk merchants will generally present a higher stage of fraud protection, so as to decrease the price their retailers incur. However, so as to cowl the higher stage of risk, rates for a high risk service provider account will at all times be higher than their decrease risk counter-parts.

When looking for a high risk service provider account, there are a number of factors that you should take into account. Rates shall be one of the most necessary factors, and this consists of charges for refunds and cost-backs, along with transaction fees, the discount rate and ongoing fees. Then you’ll need to think about fraud safety, customer service and reporting available to you as a merchant.