Top Merchant Industries that Can Benefit from High Risk Services

Aug 25, 2020

An excellent idea, good entrepreneurship skills and a strong financial backing just don’t complete the equation. One must be a big risk taker to want to venture into a high-risk business.

To excel at high risk payment processing, you must identify and mitigate the risk factors plaguing your specific industry. Failure to do so can mean trouble, both legally and financially—and threaten to ruin your connection with clients.

So what’s the challenge for high risk merchant categories and which industries can benefit from payment processing?

Payment Processing for High Risk Merchants

Traditional banks and payment providers would rather stay away from high-risk businesses. These “high-risk factors vary from one institution to another but these five will mean an automatic risky classification;

  • High chargeback risks
  • Dealing in products that call for age-verification.
  • Selling items in high tick sales & volume.
  • Industry reputation, such as high fraud incidents

Some businesses won’t even classify as risky until they run into problems in the processing process (e.g. accumulate chargebacks) and everyone else considers them risky.

Merchant Industries that Can Benefit from High Risk Merchant Services

A high-risk business is not eligible for a low-risk merchant account which makes the search process different for risky merchants.

Not all merchant account providers serve risky businesses. In fact, you want to narrow down to a service that has a history with merchants in your sector.

These payment processing enablers understand the unique needs of your business and may tailor custom-made offerings that support your business model.

Merchant account & payment processing relationships with any other vendors may start well, only to end in account terminations and a ruined business.

This often happens because such payment enablers lack the right skills to deal with certain high-risk business models.

In contrast, many partners who’ve served an industry before know the risks involved and will monitor new businesses closely to ensure they survive and grow.

Examples of sectors that can benefit from high-risk services include;

  1. Nutraceutical
  2. Adult and Entertainment
  3. Vape And E-Cigarette
  4. Subscription Box
  5. Firearms

These five merchant account offers are hot and trending as they have grown popular over the past decade. Any other business labelled high-risk must search in the right place and follow best practices.


Small high-risk merchants must spend quality time searching for the right partner. Ensure your service provider offers enough support because, above all, you need guidance as you begin high risk payment processing.

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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