How to Use a High-Risk Merchant Account to Manage Chargebacks

Oct 12, 2018

In an increasingly digital world, chargebacks are a huge problem for merchants. They chip away at your time and energy. They add stress to your day and affect your bottom line. They can even cause your merchant account to be closed or prevent you from securing one in the first place. This is just one of the many reasons why merchants turn to a high-risk merchant account.

What is a High-Risk Merchant Account?

A high-risk merchant account allows any business type and industry to secure the payment processing solutions they need to process customers’ credit and debit card transactions. These accounts are offered by alternative providers, like Traditional processors, on the other hand, shy away from business types they consider too risky; this includes businesses that experience high chargeback rates. A few of the business types that successfully use this merchant solution include: bad credit, nutraceutical, credit repair, telecom, warranty, tech support, travel, ebooks, electronics, airlines and more.

How to Manage Your High-Risk Merchant Account

One of the biggest benefits of having a high-risk merchant account is that this type of account can help you manage and prevent chargebacks. If a high rate of chargebacks is a problem for your industry, you can avoid fraud and customer dissatisfaction by working closely with your high-risk provider. Address red flags before they become a real problem and improve your business’ profits. Following these steps will help you manage your merchant account well:

1.      Improve your customer service. According to industry experts, there is a strong correlation between a high rate of chargebacks and poor customers service. In many cases, simply improving customer service drastically reduces returns, chargebacks and customer complaints.

2.      Respond to inquiries quickly. If you are contacted about a customer dispute, it is really important that you respond as quickly as possible. The high-risk merchant processor is giving you a chance to explain the situation, so jump at the opportunity to clear up what happened. By researching the problem and presenting an explanation quickly, you can improve and strengthen the relationship with your merchant processor.

3.      Review suspicious accounts. There are many criminals looking to exploit credit card systems and returns to get some cash. You can stay on top of the situation and protect your business by checking up on accounts that seem suspicious. Maybe they’ve made too many returns or asked for more refunds than your average customer. When certain customers make multiple claims that they’ve never received items or that they were damaged, you can be proactive by directly communicating with them to verify identity.

4.      Use fraud protection tools. You can incorporate tools that block suspicious IPs by location or because they’ve been involved in suspicious activities. You can even use a software that goes the extra mile to verify identity. Depending on the merchant account provider you choose, they might even provide this kind of software for you to use.

How to Choose a High-Risk Merchant Account Provider

There are so many good reasons to secure a high risk merchant account and diligently manage it. You will not only be able to offer your customers the very best processing options, but also keep your business secure and your customers’ information safe. can help you setup a high-risk merchant account in as little as 24 hours. The application itself takes just minutes to complete, and you will be provided with solutions like a chargeback protection and prevention program.

The key is to choose a provider that specializes in working with your industry. The team at has years of experience in working with business types and industries that are considered “high risk”. There are no setup fees for most merchants, and you can secure chargeback protection and high-volume solutions.

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

Get Started

Award winning.

  • 2012
  • 2013
  • 2014
  • 2015
  • 2016

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.

Live Chat