A high risk merchant is what it sounds like- businesses that are deemed ‘high risk’ by their partner providers when it comes to chargebacks.
What this means is that the account is more likely to experience a higher rate of chargeback and thus are deemed ‘higher risk’.
High risk merchant services are available in a variety of industries, such as a gaming merchant or a forex trading merchant account. They work with businesses to provide equipment, payment processing services and more to help guarantee success.
Categorizing a merchant account for high risk may be due to business location, tenure, merchant account history, number of chargebacks and personal credit, among others. It could also be that you’re operating in a high-risk industry such as an online gaming merchant account or forex merchant account.
Also, offshore high risk merchant accounts could stay in that status for a longer time. Being a merchant account for high risk business could be difficult, but there’s a high risk merchant service you can always count on.
As a high risk merchant account your business goes through extra scrutiny for merchant services, such as having a limited number of monthly transactions and having to have cash reserves on hand.
In some cases high risk merchant accounts are charged higher processing rates or fees compared to low-risk ones.
One way to offset the penalties is to enlist the help of a high risk merchant account. Whether you’re a gaming merchant or one who belongs in a high risk industry, it pays to try a high risk merchant account instant approval.
Being classified as a high risk merchant can even bring a few benefits, notably being able to offer recurring payments, having a higher sales threshold for special sales and events, and having a greater variety of services and products to sell.
Laila Azzahra is a professional writer and blogger that loves to write about technology, business, entertainment, science, and health.