Merchant Account Fees: Best for Your High Risk Business

Dec 27, 2018

Knowing what merchant account fees you’re going to pay to your processor will help you avoid unexpected costs. This is especially true of those who’re high risk. So, if you want to avoid unfavorable surprises and enjoy the most reasonable deal, just keep on reading the post.

Merchant Account Fee: What to expect

You can’t connect to credit card networks if you don’t have a merchant account. So, a merchant account for credit card acceptance allows your company to charge customer credit cards. When it comes to merchant account providers, they’ll require a fee/fees on top of the interchange rate.

These fees aren’t fixed for everyone: they’re generally based on the sales volume and the business type you have. This means rates vary from business to business, even with the same merchant account provider.

How does the process begin? Well, the merchant account provider deposits the charged funds in your bank account at regular intervals. The fees charged by the merchant services provider depend on the way the card is processed.

In-store transactions, where the customer is swiping his/her own card, offer the lowest risk of fraud. That’s why they generally come with the lowest fees. Online transactions and keyed-in transactions (ordering over the phone) offer a higher risk of fraud. Thus, they usually charge higher fees.

Overall, credit cards are being processed based on several components, such as:


There’re providers that charge a setup fee and ongoing monthly fees for support and security/PCI compliance, etc. Others require an account cancellation fee that can be expensive for those interested in changing their providers.


This is charged for capturing credit card information. The mechanisms come with varying costs. However, an online or physical high risk merchant account payment gateway may charge you from $50 to several hundred dollars.

The merchant account provider passes the captured card data on to the card processing networks operated by the major credit card companies. The processing fee that high risk merchants pay may be up to 10% of sales.


You’ll be required to pay penalties for chargebacks and disputed transactions. There’re suppliers that charge for processing disputed transactions, even when the transaction is cleared.

eCommerce merchants can expect to pay:

  • Merchant Account Fee
  • Chargeback Fee
  • Discount Rate
  • Merchant Account Registration Fee
  • Monthly Statement Fee
  • Refund Fee
  • Transaction Fee

It’s also important to be aware of the so-called “rolling reserve fund.” This is a small sum that the bank holds against your payment processing for the purpose of covering contingencies, including chargebacks and refunds.

This is a fixed percentage amount based on your weekly sales volume. It usually makes up 5-10%. Acquiring banks will place the money into a rolling reserve fund, and you’ll get a payout of these funds 6 months later.

Merchant Account Fees: High Risk Merchant Accounts

If you’re looking to obtain a merchant account for your business, be aware that the following factors will determine your merchant account fees: industry type, processing history, and expected sales volume.

If you’re a high risk business owner, expect to find more expensive fees for your merchant account. However, if you can find affordable and reliable merchant services, you’ll get the best deal for your business. So, don’t fail to do some research to identify the best provider for your own high risk business needs.

Consider turning to, a reputable high risk payment processor that’s rated A+ by the BBB. By the way, EMB is voted the #1 high risk credit card processor in the US and also has an A rating from Card Payment Options. EMB never fails to get to know you and your business well so to deliver the best possible merchant account solution. Importantly, offers the lowest merchant account fees for high risk merchants to help businesses grow successfully.

There’re a number of factors that acquiring banks take into account when figuring out your merchant account fees, with high risk accounts being more costly. Overall, you’ll hear from processors that your price may vary based on the way you process payments.

Your payment gateway can be either a point-of-sales (POS) system in the store, a mobile phone reader or an online portal. The risk of fraud associated with each type of gateway is crucial in determining the fees, with online carrying the highest level of risk, thus resulting in higher costs. So, choose your merchant account provider carefully to take your business to the next level with ease!

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