What Is A High Risk Merchant Account?

May 16, 2023

What is a high risk merchant account? 

A high risk merchant account is a type of business bank account for companies in high risk industries. A payment processor may categorize your company as high risk because of your product type, chargebacks, credit score, or average ticket value.

How do I get a high risk merchant account?

To get a high risk merchant account, find an experienced payment processor and apply. There are many companies who can review your website and walk you through the online application process. You’ll also need to submit documents that prove ownership and history.

What is considered a high risk business?

A business is considered high risk if they have increased likelihood of fraud or processing liabilities with the bank. Your ISO or bank looks at a number of factors that determine this risk. For example, your product may have age restrictions or increased chargeback potential.

What is merchant risk?

Merchant risk is assessed based on the Terms and Conditions of payment processing companies. The risks can include brand associations, legal, changing industry regulations and more. Having steady processing history over many months lowers that risk.

How long does it take to get approved for a merchant account?

Expect two to three weeks to get approved for a merchant account. Some accounts can get approved instantly if they are in good standing and a merchant provides all of the application information. Moreover, e-check or ACH can be approved in as fast as six hours.

Are you familiar with a high risk merchant?

To familiarize yourself with the language of high risk merchants, read different blog pages from payment processing companies. Understanding chargebacks, fraud risks, and the legal landscape of changing industries is key to educating yourself on high risk lingo. 

Who are the high risk customers?

High risk customers in payment processing are ones who have had a history of chargebacks or friendly fraud. These customers try to get refunds on goods they receive or try to reverse a transaction. There are different tools to help you determine who these devious shoppers are.

Which merchant account is the best?

The best merchant account is one that has low fees and continues to process payments for your online store. PayKings, for example offers industry-low rates and gets your account approved fast. If you’re a high risk merchant you’ll want a sustainable account that can grow over time.

What banks offer merchant accounts?

Banks like Wells Fargo Merchant Services, Bank of America Merchant Services, and Citi Merchant Services all offer merchant accounts to new and established businesses looking to process payments. However, other banks and ISOs may have lower fees and better solutions.

Can I get a merchant account with bad credit?

Yes, you can get a merchant account with bad credit. Depending on your payment processing history and how long your company has been in business, you’re eligible for a merchant account. Your credit score is just one factor banks look at in the application process.

How do you get approved for a merchant account?

To get approved for a merchant account, fill out an application with a payment processing company. They will review your information and request other documents like a driver’s license to determine the validity of your business. Have your information on-hand for faster approvals.

What industries have higher business risk?

Industries like CBD, vape, adult, firearms, credit repair, are all considered high risk. Other industries like online coaching or travel may face concerns like high-ticket values or canceled trips. This can result in customers trying to reverse transactions making them a risky endeavor.

What high risk merchant account provider is the fastest?

The PayKings Team can review your application and get you approved today. Whether you’re in the Adult, CBD, Vape, or any eCommerce space, we help you find the lowest rates and fees possible. Get sustainable payment processing for your unique business needs with our high risk merchant accounts. 

Can I get pre-approved for a merchant account?

If you are an eCommerce high risk company, PayKings has got you covered. Get pre-approved in as little as 6 hours for a difficult to obtain high risk merchant account. Our team of experts considers your business type, business model, and restricted service or product types. We also have established partners who can help you with fraud prevention, chargeback protection and gateway integration.