What is High Risk Merchant Account

There are many people who have an online business and along with this, they have a higher risk of chargebacks. Most of them want to process credit card transactions, and if that is the case then they need a high risk merchant account. So, today in this guide I am going to tell you about high risk merchant account and also the methods as to how you can identify you need one. Firstly, you have to find out an acquiring bank which can underwrite your business if you want to open a high risk merchant account. But if you want to enhance your chances of getting the right kind of high risk merchant account it is always advisable that you ask a trustworthy payment service provider for help.

Merchant Services

A payment processing account for your online business which is considered to be of high risk to the banks is known as a high risk merchant account. One of the reasons for the same is online businesses which are high risk are more prone to charge backs. And the online businesses which are a high risk come with the need of paying high fees for the merchant services. Now, if your online business is of such kind which comes with the higher potential or cause of chargebacks. Plus, your banking history shows several chargebacks and refunds, and then the bank will apply a rolling reserve on your bank account.

About High Risk Merchant Account

High risk merchant account can be described in short as to where there are more chargebacks in any business, there will higher risk. Hence the pivotal factors that matter the most are the reputation of the firm, and the history of processing. It is also advisable to people to keep their chargeback lower than 0.9% in their total dealings or transactions. Here are the full features of high risk merchant, but you should also know that it will differ based on some payment processor strategies.

  • More than $19,000 in a monthly sales capacity.
  • Average high risk credit card processors,transactions which are higher than $500.
  • Any business which offers their products and services on sale to the countries around the globe known for fraud
  • Excessive chargebacks
  • Bad credit history

People Who Need High Risk Merchant Account

One of the instances of high risk businesses is that of the industry concerning that of travels. Various factors contribute to it and it is also one of the reasons for cancellation. This will mostly end up with a lot many types of refunds, plus there will also be customers who are likely to file chargebacks. And those people who do gambling, online trading, etc. are also the kind of people who need high risk merchant account. There are several kinds of business models and industries which require a high risk merchant account and they are prone to getting the chargebacks. So, the businesses which are mostly into annual contracts, antiques, attorney referral services, auctions, automotive brokers, bankruptcy attorney, brokering, car parts, casinos, gambling, etc. need high risk merchant account.