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All You Need To Know About High-Risk Merchant Account

Want to open a high risk merchant account but are confused about how to open it? You will know everything about it in this blog. A high-risk merchant account is the account given to the business that the payment processor deems to be at greater risk of fraud and chargeback.

What Is The High-Risk Merchant Account?

It is the payment processing account for the businesses considered to be of high risk to the banks.  As high-risk trades are more cause to chargeback, they come with the requirement for paying fees for services of the merchant. In case a business with the high potential of chargeback comes. Then, the bank may put a rolling reserve on your account. It is the amount of money that will cover the chance of the chargebacks or the fraud. Next, you should know the main differences between the high-risk and low-risk merchant accounts.

What Is The Difference- Low Risk Vs. High-Risk

Before you apply for the merchant account, it will be very important for you to know the differences between the high and low-risk merchant account. The following are some differences between low and high-risk merchant account that you should know:

Low-Risk Merchant Account

  • Credit card transaction that is less than average of $500
  • Minimized Returns
  • Less than $20000 processed monthly
  • Zero to low chargeback ratio

(These are, for instance, low-risk shoes and clothes, baby products, household goods.

High-Risk Merchant Account

  • More than $20,000 monthly sales value
  • Credit transactions are higher than the average $500
  • A business sells products and services to nations that are known for high levels of fraud.
  • Bad credit history and excessive chargeback

These are the separations between the low-risk and the high-risk merchant account.

How Can I Apply For Merchant Account?

In order to apply, you need to fill out an application online to get a merchant account of high-risk. Furthermore, you should find a reliable high-risk payment processor like 5-Star processing to accept card payments. The process is so easy in order to apply for a high-risk merchant account.

For example, if you choose 5-star processing as your payment partner, we will help you to find a bank that matches your business requirements. In case your business is approve by the acquiring bank. Then, you can start processing payments online or on mobile.

What To Know When Applying For a Merchant Account?

There are so many high-risk credit processors on the market. However, 5 star processing is unique from other ones. 5 star processing is an independent payment processing company that has its own qualities. There are many things that you can consider when looking for a merchant account of high-risk with 5 star processing. The following are some important things about which you should know:

  • Responsive Support
  • Flexibility And Customization
  • Transparent Pricing
  • Technology
  • Expertise
  • Accepted Business Models
  • High-Risk Payment Processor Website

Responsive Support:

You need someone to ready to help you when anything bad happens to payments on your website. Thus, to solve this problem, at 5-star processing, we will give your high-risk business a guarantee that every issue will be addressed.

Flexibility And Customization:

At 5 star processing, we let you implement many payment scenarios that fulfill all your business requirements specifically when you run a complex business model. Make sure you can customize each and every element of the payment form. Moreover, you can discuss the rates, conditions, and features fulfilled to your business.

Transparent Pricing

The structure of pricing should be easily find on the website of 5-star processing. You need to search for accurate information about the fees and the potential added costs. Make sure that there are no hidden or additional fees. These are the three important things that you need to consider when looking for a merchant account of high risk.


What you might be enthusiastic about is whether your payment gateway offers more than two accounts. Also, you should ask for the payment platform API so that you will have full control over the setup and the process of payment. What also matters is rapid onboarding and payment intended for users, without downtimes and surprises.


You should research to find out how long a payment corporation has been on the market and what is the background of its leaders. In addition to this, the knowledge and expertise of all ins and outs of niche industries position them as market leaders. It also ensures that the payment platform that you want to work with is reliable, so your money remains safe.

Accepted Business Models:

Before applying for a high-risk merchant account, make sure that the credit card processor works with the industries your corporation operates in. Moreover, you should also note that reliable payment processors keep a list of the supported business models and nations on their websites.

High-Risk Payment Processor Website:

You can visit the 5-star processing website to check our layout and whether we publish updated information. In addition to this, dates or a basic website that makes you feel like back in time can be a warning sign that something is wrong with the corporation you consider.

What Are The Pros Of The Merchant Account?

Given below are some benefits about which you should surely know:

  • Expanding Your Business
  • Increased Profits
  • High Chargeback Protection
  • Global Coverage

Expanding Your Business:

You can sell goods or services with the assistance of a high-risk merchant account which is not enable when you have a low-risk merchant account. Hence, it gives you more chances for long-term growth.

Increased Profits:

With the wider chances of the products, you can sell grow your chances of them earning more money.

High Chargeback Protection:

This means that you have a bigger chance of keeping your high-risk merchant account in the good shape.

For example, when a merchant crosses the chargeback threshold with a regular account, they may even end up with the ended amount. Moreover, they need to look for a high-risk merchant account. This often equals a pause in taking credit card payments. However, it is simple to keep your account in continuity, as a single chargeback exceeding does not have to come with the closing of an account. However, it also does not mean that you can ignore chargeback management.

Global Coverage:

As a high-risk merchant, you can increase the performance of your business by accepting transactions in several currencies and selling to customers outside nations considered low risk. This means you can access larger markets.

Final Points To Remember:

Conclusively, applying for a high-risk merchant account with the help of 5-star processing is a good idea. You can get a lot of benefits by choosing 5 star processing that is an independent payment processor company. We have a lot of experience in providing payment services to the merchant account. Hence, it will beneficial for you if you take the help of 5 star processing and apply for a merchant account of high-risk. For more information contact us now!!



Q 1: Why is my business considered at high risk?

A business is considered high risk due to several factors. However, most commonly, it is based on the two main conditions. It operates within the high-risk industry and the risk of financial failure exists. For small businesses, they may be considered high risk if they are processing revenue that is less than $1.2 million per year.

Q 2: What is a chargeback?

A chargeback is the reversal of funds after a customer has disputed a transaction with their bank. The concept of chargeback was created by the fair credit billing act. As time has progressed, chargeback has become more problematic for small businesses.

Q 3: What type of business do you accept?

In my opinion, I accept low-risk businesses. I think low-risk businesses are the safest bet for enterprises. Many enterprises start small by offering services in their local community. These are safe business ideas because there is less competition and lower possibilities of failure.

Q 4: What makes a merchant account high risk?

High-risk merchant account is the account given to the business that the payment processor deems to be at the greater risk of frauds and chargebacks.

Q 5: How much does a high-risk merchant account cost?

In terms of the sum, you will have to pay, even though this can vary significantly amongst providers, the industry average high-risk merchant account fees for the PCI compliances oscillate at about $120/year.

Q 6: Who are the high-risk customers?

Clients connected to high-risk nations
Clients who have unessential complex or opaque beneficial ownership structures
Lack an obvious economic or lawful motive
Politically Exposed Persons

Q 7: What businesses are involved in High risk?

The most common high-risk businesses include online gambling, online gaming, sports booking as well as travel and advanced booking.

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