Who Wants a High Risk Merchant Account?

Merchant accounts are required in order for a business to just accept credit card payments. As a merchant, there are places you possibly can receive a service provider account; a bank, or a third party provider. For online gaming merchant account setup merchants the most popular, and in most cases price effective, source is from a third party merchant account provider.

A high risk service provider account is required by businesses that, when compared to a ‘traditional’ items/companies enterprise, are at a higher risk of:


Fraudulent Transactions

High volume of gross sales

High rate of refunds

High rate of cost-backs

Different reasons a merchant could also be categorized as a high risk are:

Merchants Location – Some merchant account providers will not settle for merchants from certain countries.

The Product/Service the service provider sells is prohibited in some jurisdictions.

Service provider Credit History – Some providers will not accept merchants with poor or no credit history.

Due to the high risk classification, most banks won’t provide a service provider account to those in a high risk trade (equivalent to adult entertainment, duplicate goods, pharmacy etc). As such some third party providers supply their services to each basic merchants and high risk merchants.

Merchant account suppliers which have been developed to service high risk merchants will typically provide a higher degree of fraud protection, so as to lower the associated fee their retailers incur. Nonetheless, in order to cover the higher degree of risk, rates for a high risk service provider account will at all times be higher than their decrease risk counter-parts.

When searching for a high risk service provider account, there are a number of factors that it is best to take into account. Rates will probably be one of the vital necessary factors, and this consists of charges for refunds and charge-backs, along with transaction charges, the discount rate and ongoing fees. Then you will have to think about fraud protection, customer support and reporting available to you as a merchant.