High Risk Merchant Account? What Is This?

Sep 06, 2022

A high-risk merchant account speaks of a business that is riskier in the eyes of payment processors because of higher fraud or chargeback rates. Below, you can read details concerning high-risk merchant accounts and know where you can find a secure and affordable account for your risky business. 

What Kind of Accounts Are the High-Risk Accounts?

Payment processors classify merchant accounts as high risk because they’re associated with a higher risk for chargebacks, fraud, or excessive returns. High-risk merchant accounts:

  • Charge higher processing fees.
  • Accept multiple currencies.
  • On average, their credit card transactions are over $500. As compared, a low-risk merchant account is typically associated with a transaction volume of less than $20,000 per month.
  • Their average monthly sales volume exceeds $20,000. 
  • The business owner doesn’t have a good credit history.
  • Recurring or subscription payments are typical of them.

Traditional banks and financial institutions aren’t willing to work with risky businesses as they want to avoid problems that might arise because of these businesses. Specifically, high-risk businesses include:

  • Cryptocurrency, Forex, and currency trading
  • Casinos or online gaming
  • Gun dealers
  • Prepaid debit cards
  • Calling cards and VoIP providers
  • Pharmaceuticals and online drug providers
  • Nutraceuticals
  • Tobacco, e-cigarettes, and cannabis products
  • Telemarketing sales
  • Adult entertainment and dating services
  • MLM and network marketing
  • Airlines, accommodations, and ticketing businesses

And more.

When choosing a high-risk processor, make sure it accepts your type of business and specializes in the high-risk industry. 

High-Risk Merchant Account from a Reputable Provider

The good news is that there are reputable high-risk merchant account providers like eMerchantBroker.com that are committed to offering the most secure, advanced, and lowest-cost payment processing solutions to hard-to-approve merchants. 

EMB is rated A+ by the BBB and is also a reputable business funding provider in the high-risk field. EMB speaks to every single business owner to gain a better image of their business wants and needs so as to provide more suitable payment processing services. 

With eMerchantBroker.com, you can be sure to open a merchant account without any hassle. EMB offers a quick application process. 

What You Should Know About High-Risk Merchant Accounts

Businesses characterized as “high risk” need a high-risk merchant account to process debit and credit card transactions. Find a respectful high-risk processor to open a merchant account for your risky business.

Let us help you get a high risk merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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