What is a high-risk merchant account?

High-risk merchant accounts are designed for businesses that are considered to be a higher risk for fraud or chargebacks. These businesses may be in industries that have a high incidence of fraud, or they may have poor credit history. High-risk merchant accounts typically come with higher fees and stricter terms than regular merchant accounts.

There are a few things that can make a business a high risk for fraud or chargebacks. If you sell products or services that are often the target of fraud, you may be considered high risk. This includes items like electronic goods, event tickets, and jewelry. If you run a business that has a high number of refunds or chargebacks, you may also be considered high risk. And finally, if you have bad credit or no credit history, you may be seen as a high-risk business.

If you think your business may be classified as high risk, it's important to shop around for the right merchant account provider. Not all providers offer high-risk merchant accounts, and those that do typically charge higher fees and have stricter terms. But there are plenty of options out there, so it's important to compare rates and terms before choosing a provider.