What is a High-Risk Merchant Account?
With a high-risk merchant account, the payment processor and card networks assume that the business has a greater risk of defaulting on payments, incurring many chargebacks, or committing fraud.
High-risk enterprises are often new, have a history of credit problems, or operate in an area deemed contentious or uncertain.
Even eCommerce businesses automatically fall into the high-risk category because they accept card-not-present transactions—card payments when the merchant doesn’t physically “see” the customer’s card.
Whether justifiable or not, a business deemed high-risk may be subject to additional costs associated with credit card transactions, higher processing rates for payments, and more stringent terms and conditions on compliance and reporting.
There is a risk of be...