Guide·10 min read
High-Risk Merchant Accounts: The Complete Guide
If you've been told your business is 'high risk,' here's what that actually means and how to get payment processing anyway.
What Makes a Business "High Risk"?
"High risk" is a label assigned by acquirers and card networks to businesses they perceive as more likely to generate chargebacks, fraud, or regulatory issues. It's not a judgment of your legitimacy - it's a risk assessment.
Common High-Risk Indicators
Industry/Vertical
- Gambling and gaming
- Forex and CFD trading
- Adult entertainment
- Nutraceuticals and supplements
- Crypto-related services
- Travel (especially advance bookings)
- Subscription/recurring billing
Business Model Factors
- Card-not-present transactions
- High average ticket values
- Delayed fulfillment
- International customers
- New business/no processing history
- Previous merchant account terminations
Consequences of High-Risk Classification
- Higher rates - Expect 1-3% higher than low-risk merchants
- Rolling reserves - 5-10% of volume held for 6+ months
- Volume caps - Monthly limits until you prove yourself
- Longer approval times - More due diligence required
- Fewer options - Most mainstream PSPs won't take you
Finding High-Risk Processors
Specialist high-risk processors exist. They understand your vertical, price for actual risk, and won't terminate you at the first chargeback. The tradeoff: higher costs than mainstream processors.
What to Look For
- Vertical experience - have they worked with your industry?
- Clear pricing - no hidden fees
- Reasonable reserves - with clear release terms
- Chargeback support - tools and guidance, not just penalties
- Contract flexibility - avoid long-term lock-ins
Reducing Your Risk Profile
- Implement strong fraud prevention
- Clear refund policies and customer communication
- Use chargeback prevention tools (Verifi, Ethoca)
- Build processing history with volume growth over time
- Maintain excellent documentation
Key Takeaways
- High-risk is a classification, not a death sentence
- Specialist processors exist for your vertical
- Expect higher costs but don't accept unreasonable terms
- Focus on reducing actual risk, not just finding processors
- Build history to eventually access better rates
Need help finding the right PSP?
We help merchants in complex verticals find payment providers that fit.
Talk to Us