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All you need to know about merchant accounts high risk

High risk merchant accounts are specifically designed for businesses that often experience high fraud rates and chargebacks. For instance, a merchant with a high risk account will experience fewer fraudulent transactions, lower fees, and more efficient customer service compared to other types of accounts. While these benefits may not seem as important if you run an e-commerce shop that processes less than $100,000 per year in sales, they become critical when you’re talking about higher volume companies that may produce hundreds of thousands or even millions of dollars in revenue each month.

What is a High Risk Merchant Account?

A high risk merchant account is a merchant account that is designed for businesses that have a higher risk of chargebacks or fraud. This merchant account can also be called an enhanced merchant account, as it usually comes with additional features and benefits.

Why Does My Business Need a High Risk Merchant Account?

If your business is selling products or services that are considered high risk, a high risk merchant account may be right for you. High risk merchants often have a higher chance of chargebacks and other fees because they sell products and services that are considered to be more volatile than others.

High-risk merchants include online casinos, gambling sites, firearms dealers, pharmaceuticals sellers and dating services (to name just a few).

What Types of Businesses Should Apply for High Risk Merchant Accounts?

High risk merchant accounts are designed for businesses that fall into one of the following categories:

  • Merchants with a lot of chargebacks. Chargebacks can occur when a customer disputes their purchase, or if they request a refund from their credit card company after receiving their order. If you have an excessive number of chargebacks, your business may be considered high risk by some providers.
  • Merchants with high transaction volumes and/or large dollar amounts per transaction (i.e., selling expensive items). These merchants may also be considered high risk because they’re more likely than others to have disputes between buyers and sellers due to fraud or other issues related to payment processing systems like EMV chip cards (EMV stands for Europay MasterCard Visa).

Are There Any Benefits to Having a High Risk Merchant Account?

In addition to being able to accept more forms of payment and process more transactions per month, there are other benefits that come with having a high risk merchant account.

  • More Payment Options: High risk merchants have the ability to accept more forms of payment than standard merchants. For example, they can accept ACH transfers and checks (as long as they’re still valid). This allows them to diversify their product offerings and reach a wider audience by offering something different from their competitors.
  • Better Support: It’s important for your provider to provide excellent customer service because you’ll likely need help when things don’t go according to plan (which happens often with high risk businesses). It is also beneficial if they have knowledgeable representatives who are well versed on how best practices should be implemented within your industry so that customers’ needs are met efficiently without compromising security measures like PCI compliance requirements.”

If your business falls into one of these categories, you’ll need a high risk merchant account.

In case your business falls into one of these categories, you’ll need a high risk merchant account.

If your business is in the following industries:

  • Marijuana-related sales (including CBD oil)
  • Tobacco products and accessories (including e-cigarettes and vaping devices)
  • Adult entertainment products or services including adult dating sites

But if you sell products or services that fall into these categories, it’s likely that your business will be considered high risk by most major payment processors because these industries have been associated with fraud and chargeback rates higher than average.


We hope this article has helped you understand what a merchant accounts high risk is and how it can benefit your business. If you have any questions about whether or not your company qualifies for one of these accounts, please contact us today!

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