High-risk merchant accounts- What it is and how it is works

  High-risk merchant account for company with better organizational structure & chargeback protection 

The high-risk merchant accounts are found to be working with the payment processor that avoids 

chargebacks and provided to the business which are into high risk. Although, the account comes with 

premium services and for those business which looks to process credit card transactions along with the 

acquiring banks that also is able to under write business. The small business owners do not look for high 

risk merchant account but those business which are found with greater risk of chargebacks opt for a 

high-risk merchant account. The merchant services look for the best payment processing partners and 

work with the industry-wide standard that also looks for no unfair judgement against the business. 

The businesses are found with the high-risk merchant account and with the limitation of certain number 

of transactions with other accounts fares better with merchant account that avoids higher risk and 

provides higher number of cash reserves for the business. The business which provides much of the 

likely target for the high-risk merchant account are as follows:    

Higher length of time in business: The longer time the business stands the higher chances of 

finding a merchant account of higher risk. 

Positive banking history: The positive banking history with honest business transactions with 

new merchant partnerships are found with high-risk accounts. 

Less chargebacks: With less chargebacks and better credit history leads to getting immediate 

response by the banker of high-risk merchant accounts. 

Identification as high-risk industry: Many of the industries these days are found with the context 

of high-risk industries such as adult merchant websites or online gaming business leads to high- 

risk merchant accounts. 

In order to get a high-risk merchant account a company or a business has to go through extra scrutiny   

and there are chances that with the limitation of certain number of cash transactions a certain amount 

of cash reserves maybe kept with the business in the initial period. The other good thing is that there are 

several benefits of the business with the high-risk merchant account and with the added scrutiny here 

are few advantages of such accounts: 

Offer of recurring payments 

Processing of higher sales volume for the launch events along with special sales 

Selling a wider variety of products and services 

International business acumen with fewer restrictions that is found with global expansion 

The better understanding of a high-risk merchant accounts are with certain payment criteria along with 

the processor guidelines: 

More than $ 20,000 of the monthly sales volume 

Average credit card transactions with higher than $ 500 

Business sells products ad services to countries which are known reeling with higher level of 

fraud 

Bad credit history along with excessive chargebacks  

Now, with high-risk merchant account details provided there might be a question in thought that what 

are the low-risk merchant account: 

With every payment processor along with the own set of guidelines here are some characteristics of the 

low-risk merchant accounts: 

Less than $ 20,000 monthly sales volume 

Average credit card transaction that is less than $ 500 

Industry that operates merchants with low risk such as low-risk clothes and shoes industry 

Zero to low chargeback ratios  APPLY NOW 

Minimized returns 

How to apply for a high-risk merchant account? 

For applying a high-risk merchant accounts these many documents are necessary: 

Incorporation certificate of the company 

Shareholders certificate of the company 

Organizational structure chart of the business 

Copy of the passport or the utility bill of local directors and shareholders with more than 15% 

Incorporation certificate and shareholders certificate of other firms in case of shareholders 

Processing history of last 6 months 

Test user credentials with premium access to platform 

The license number and name of the organization which issues the license 

Understanding all the pros and cons of high-risk merchant accounts is necessary along with the 

limitations which could be found here: 

Global coverage: The high-risk merchant account ae found with the business performance by 

accepting transactions with multiple currencies and sell clients outside countries that are found 

with low risk. 

High chargeback protection: The high chargeback protection with bigger chances of keeping 

merchant account in good shape. For instance, with the merchant that finds regular account 

with crossing threshold leads to termination of accounts. It also looks for high-risk merchant 

account that also looks for the credit card payments 

It is easier to keep a high-risk mercha