What is a High Risk Merchant Account?

Businesses who wish to accept payments other than cash will find it necessary to establish a merchant account, which allows for check and/or debit and credit processing capabilities. A brick and mortar store typically needs only acquire a point of sale merchant account. Businesses with an online presence or that accept telephone orders, as well as businesses at increased risk for fraudulent activities and payment difficulties; will need to obtain a high risk merchant account. The merchant account must be linked to the business’ bank account, which will serve as the destination for proceeds from sales and the source of funds for refunds and returns.

What Types of Businesses Are Considered High Risk

Businesses are generally considered a high risk for payment processing if the business is operated solely online, or if products and services provided are considered to be dangerous or controversial. Businesses that often fall under this category include, but are not limited to, providers of adult entertainment, online gaming, pharmaceuticals, tobacco products and travel services.

Advantages and Disadvantages of a High Risk Merchant Account

The ability to accept payment by check and via credit and debit cards provides a potential opportunity for traditional brick and mortar retailers to increase sales revenue. A high risk merchant account is a necessity in order for any web-based business to process transactions of any kind.

Businesses seeking to open high risk merchant accounts face unique challenges. Many U.S.-based financial institutions are reluctant to open high risk merchant accounts. As a result, many businesses must pay hefty merchant service fees to offset the bank’s risk, or choose off-shore or multinational banks and payment processors. An additional challenge is that funds from sales usually will not post to the attached bank account in real time, but rather in large incremental batches, approximately two to four days after the original transaction.

What to Look For in a High Risk Account

A quality high risk merchant account provider will have the ability to accept multiple payment methods, including online and telephone options for payments by check or via debit and credit cards. Ideally, the account provider will have multiple partnerships with the major credit card processing networks, like Visa, MasterCard, American Express and Discover. Additional features to look for in a high risk merchant account include nominal merchant service fees and high up time for the payment portal


If the nature of your business falls under the category of High Risk please send all inquiries to rdavidson@***,com

It’s true that there are some risks with merchant accounts but these are very essential services of these days for any business. Best thing about this kind of service is that it provides a very fast money transaction service to you and it also helps you in increasing your sales.

One more benefit of high risk merchant account is that it allows you to process payment in multiple currencies.