When Do You Need a High Risk Business Merchant Account? - High Risk Holdings

If you have shopped for a merchant account, you may have noticed that some businesses are denied accounts due to high risk. Merchant account companies assume a certain amount of risk with each company they work with. In many industries, the risk is fairly low. However, companies in some niches like casinos and gambling may need to use special, high-risk online gaming merchant account services that are able to accept credit cards.

How Merchant Service Providers Determine Risk

Risk is typically determined by several factors. Some organizations might have proprietary formulas for evaluating risks. However, there are many factors, so it is difficult to predict how a provider evaluates your risk level. Nonetheless, there are other factors that you can predict are-

Higher Chargebacks- If you’re in a field that has a lot of chargebacks, it is likely you will be considered as a high-risk business. This is true for outright fraud as well.

Offshore Businesses- Businesses that are located overseas but do business operations in American may be considered high risk. This can vary depending on where you are located.

Poor Personal Credit- Business owners or entrepreneurs with bad personal credit are more likely to be flagged as high risk. This is right for small businesses with only one or a few owners.

Risky Products/Services- Some business niches are consistently riskier than others. For example, selling drugs paraphernalia may be legal, but it is in a grayer area than other businesses.

High-Value Sales- If you’re selling products to consumers that cost $5 each, the downside of a chargeback is minimal. However, if you consistently sell something that costs you $10,000, the downside is much higher. This may get your business tagged as high risk.

High-Volume Sales- Some businesses have an unusually high volume of sales with big margins. Somehow, this could be another reason for getting flagged as a high-risk business.

These factors are evaluated in the underwriting process. Some online gaming merchant account or high-risk merchant account provider will refuse to work with you. Other, including High-Risk Holdings, has special accounts intended for high-risk businesses. Hiring an experienced merchant account provider can help you make the most of your account even in the riskiest industry.

Industries That Are Considered Risky

There are many business categorizations that may be considered high risk.

  • Adult Entertainment
  • Airline Tickets
  • Binary Options
  • Collections
  • Cryptocurrency
  • Debt Consolidation
  • Drug and Tobacco Paraphernalia
  • Extended Warranties
  • Foreign Exchange
  • Loan Services
  • Multi-level Marketing
  • Nutraceuticals
  • Online Dating
  • Online Gambling
  • Pharmaceuticals
  • Tech Support
  • Travel Agencies

What to Expect as a High-Risk Merchant

Having a best high-risk merchant account or online gaming merchants processor typically means that you will need to go through a more rigorous underwriting process. The acquiring banking partners may request additional ‘know your customer’ documents and have tighter expectations. Many banks only accept certain industries; moreover, some impose volume caps and set other restrictions such as chargeback prevention schema.

Many banks and credit card issuers are more cautious of high-risk businesses than they have been in the past. Thus, make it challenging to find the right account. However, we strive to make merchant services as helpful as possible even in relatively risky businesses.

Finding a Reliable High-Risk Account Provider

One of the key challenges for high-risk business owners is that the acquiring banks can be harder to work with. Fortunately, High-Risk Holdings works with domestic, international and offshore partners to make it easier for you to get approved. We provide you fraud protection tools including SSL encryption, PCI DSS compliant software, and 3D secure processing to keep your business safe and will also make your banking partner feel more secure.

We provide multi-currency processing in an online gambling merchant account so you can accept more payment types. Along with our customer support, you can be confident that your high-risk business risk is secure & successful.

To get started with high risk merchant account processor and gateway fill our contact us form!


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