The best Merchant Accounts for high-risk businesses

What is a high-risk Merchant Account?

When a payment is made by debit or credit card, the funds are deposited in a merchant account and when cleared are transferred to a business account. If a business is at risk of credit card fraud or returns it is considered high risk and the merchant bank is aware that there may be problematic transactions down the road. The merchant bank may still agree to open a merchant account for your business but it is a high-risk merchant account and comes with higher fees to compensate for the risk.

What makes an account a high-risk Merchant Account ?

When banks open merchant accounts for merchants they consider the business’s activities and assess the risk involved in the business itself. The merchant bank takes on the majority of the risk during a transaction and so they want to minimalize that risk by imposing high premiums on accounts that are deemed high risk.

Banks consider businesses high risk if they are likely to fail; end up getting sued by disgruntled customers; have a bad credit history or if the business or industry is blacklisted. If a business has a history of chargebacks it is likely to find itself with a bank account classified as high risk. If a business has no merchant account they have no way of accepting payments and so they have no choice but to open an offshore merchant account where the laws are less conservative. Alternatively, the business could agree to harsh charges and fees in exchange for a merchant account in their country of residence.

The criteria that make a business “high risk” often change and today high-risk merchant accounts are not only for online gaming businesses or pharmacies but also for businesses dealing in other industries.

What are the best merchant accounts for high risk?

If your business is in a high-risk industry or has any risk of financial failure, you need to find out what are the best merchant accounts for high risk. Among the best merchant accounts for high risk are the payment providers Payment Cloud; Durango; Soar Payments; Payline Data; Easy Pay Direct and SMB Global. The best merchant accounts for high-risk businesses are payment providers that specialize in high risk. Let GBO help you find a payment provider that offers the lowest rates, great customer service, and a favorable contract for your high-risk business.

High-risk Merchant Account offers


    How to open a high-risk merchant account?

    To open a high-risk merchant account, you will need to find an acquiring bank that suits your business. The application process for a high-risk merchant account varies from bank to bank but there are some standard requirements. You will need to fill in an application form and have several documents prepared including your business incorporation certificate; shareholders’ certificate; a copy of your passport; utility bill (for proof of address); processing history and your business license. Also, to open a high-risk merchant account you may need to present further documentation. The high-risk merchant account provider will then assess your application; review whether your credit card processing history shows that you are within the acceptable chargeback threshold; assess your credit score; industry reputation and verify all of your personal and business information and documents. If you meet all the requirements you will be able to open a high-risk merchant account.

    What is a high-risk merchant account for high volume?

    Each merchant account provider has their idea of what is a high-risk merchant account for high volume. Most payment processing providers treat high-risk merchant accounts and high volume merchant accounts in the same way as they both are at high risk of fraud and chargebacks. High volume merchant accounts are usually offered to businesses with a turnover of over $100,000 and hundreds of small payments each day. When there are hundreds of single payments a day there is an increased risk of fraud and chargebacks. A high-risk merchant account is for businesses that operate in high-risk industries or have a bad credit history. A high-risk merchant account for high volume would provide payment processing services for businesses where there is a high volume of credit card payments and the business is considered high risk. If an account is just high volume and not considered a high-risk merchant account, then the provider may temporarily raise the processing limit if the business goes over the limit for the day. 


    What is a high-volume merchant account?

    If you want to know what is high volume merchant accounts, then you probably have a business with a profitable turnover. Merchant service providers give account holders a process volume limit. A high-volume merchant account is for businesses that make over $100,000 in credit card transactions through hundreds of small single payments daily. These businesses need a higher processing volume limit which they can get with a high volume merchant account. With a large number of transactions, there is a higher risk of fraud and chargebacks and so the fees associated with high volume merchant accounts are higher. With a high volume merchant account, the processor may on occasion temporarily raise your processing limit when needed. After a period when you have processed orders, implemented fraud detection tools, improve your credit, and minimized chargebacks then your merchant account provider may increase your processing limit.


    How to open merchant accounts for high-risk industries?

    Find out how to open merchant accounts for high-risk industries by contacting your chosen high-risk merchant account provider. The requirements may differ and some merchant account providers specialize in clients from a specific industry. For the approval of merchant accounts for high-risk industries, you will need to provide basic information about you and your business, including name, address, and phone number. You will also need to submit supporting documents including (but not limited to) Articles of Incorporation, Articles of Organization, names of owners and benefactors, ID documents, 3-6 months of credit card processing statements and a void check or letter from your bank showing that your accounts are in good standing. If you work in an industry that requires licensing, for example, gaming, you will need to show your business license. The high-risk merchant account provider will take time to assess and verify your information before approving or denying your application.


    How long it takes to open a high-risk merchant account?

    Although low-risk merchant accounts can be opened in one or two days, how long it takes to open high-risk merchant accounts depends on several factors. It will take a minimum of three to five business days to have your high-risk merchant account approved. It can take up to five weeks to get approval. The reason that approval of a high-risk merchant account takes so much longer is that the provider needs to do a far more in-depth investigation into the applying business. The payment provider will take time to verify your credit history, business license, personal financial history, and risk level of your company. The process can become even longer if you have neglected to submit all the required documents or if the merchant bank provider requests further documents. You also need to get approval from your acquiring bank. You can help the process run smoothly by being up-front about your business and provide all the required documents.

    What is the high-risk merchant account application process?

    The high-risk merchant account application process begins when you find a merchant account provider. Compare fees, terms, customer support, reputation, and the services provided by the merchant account provider. Check whether the merchant account comes with a payment gateway so that you have an all-in-one solution. Next, you can begin the application process by gathering all the relevant documents required by the merchant account provider. These include financial statements, business license, credit history, personal financial history, ID documents, and your processing history including number and volume of transactions, refunds, and chargebacks. You may need to show 6 months of processing statements. Together with the supporting documents, you will need to fill in an application form with general business and personal details. Review the terms and conditions of the merchant account agreement in fine detail before signing.


    Very-high-risk merchant accounts?

    “Very-high-risk” merchant accounts are for businesses operating in high-risk industries. Very-high-risk accounts can also be for businesses with a bad financial and credit history; those selling services and products to countries known for high levels of fraud and businesses with a high credit card transaction volume. If a business has been rejected by several acquiring banks that are unwilling to take on the risk, then a very-high-risk merchant account is needed. It may be difficult to get a very-high-risk merchant account, but it is not impossible. The application process may be more complex, more supporting documents may be required and the fees will be higher but very-high-risk merchant accounts are obtainable. 

    What are merchant account requirements?

    The requirements for setting up a merchant account vary depending on the provider. Ask your provider what are merchant account requirements. To open a merchant account first establish a business bank account. Then choose a merchant account provider and make your application. The application process will include providing supporting documents to show the legitimacy of your business, estimated processing volume, your credit history, and details about your business operation. Merchant account requirements usually include your business license, physical address, application form, personal ID documents, Articles of Incorporation, PCI compliance, business plan, voided check, and business policies.


    What are merchant account fees?

    Merchant account fees vary depending on your provider and your business. Generally, you will be required to pay an application fee as well as a percentage of the transactions and a per-transaction amount. Your merchant account provider will also charge a fee for chargebacks to cover the administrative costs of processing. A rolling reserve is held by the bank to protect against unexpected chargebacks and fraudulent activities. The rolling reserve can be about 5-10% of the credit card processed volume. The rolling reserve is held for a defined period and then released back to the business. Other merchant account fees may be a set-up fee, a monthly fee, an annual fee, PCI fees, and an early termination fee. Read the terms and conditions carefully to make sure you know what you are going to be charged for your merchant account.

    What are the best merchant accounts for high risk?

    If your business is in a high-risk industry or has any risk of financial failure, you need to find out what are the best merchant accounts for high risk. Among the best merchant accounts for high risk are the payment providers Payment Cloud; Durango; Soar Payments; Payline Data; Easy Pay Direct and SMB Global. The best merchant accounts for high-risk businesses are payment providers that specialize in high risk. Let GBO help you to find a high-risk payment provider that offers the lowest rates, great customer service, and a favorable contract for your high-risk business.


    How to open a high-risk merchant account?

    To open a high-risk merchant account, you will need to find an acquiring bank that suits your business. The application process for a high-risk merchant account varies from bank to bank but there are some standard requirements. You will need to fill in an application form and have several documents prepared including your business incorporation certificate; shareholders’ certificate; a copy of your passport; utility bill (for proof of address); processing history and your business license. Also, to open a high-risk merchant account you may need to present further documentation. The high-risk merchant account provider will then assess your application; review whether your credit card processing history shows that you are within the acceptable chargeback threshold; assess your credit score; industry reputation and verify all of your personal and business information and documents. If you meet all the requirements you will be able to open a high-risk merchant account.

    What is a high-risk merchant account for high volume?

    Each merchant account provider has their idea of what is a high-risk merchant account for high volume. Most payment processing providers treat high-risk merchant accounts and high volume merchant accounts in the same way as they both are at high risk of fraud and chargebacks. High volume merchant accounts are usually offered to businesses with a turnover of over $100,000 and hundreds of small payments each day. When there are hundreds of single payments a day there is an increased risk of fraud and chargebacks. A high-risk merchant account is for businesses that operate in high-risk industries or have a bad credit history. A high-risk merchant account for high volume would provide payment processing services for businesses where there is a high volume of credit card payments and the business is considered high risk. If an account is just high volume and not considered a high-risk merchant account, then the provider may temporarily raise the processing limit if the business goes over the limit for the day. 


    What are high-volume merchant accounts?

    If you want to know what is high volume merchant accounts, then you probably have a business with a profitable turnover. Merchant service providers give account holders a process volume limit. A high-volume merchant account is for businesses that make over $100,000 in credit card transactions through hundreds of small single payments daily. These businesses need a higher processing volume limit which they can get with a high volume merchant account. With a large number of transactions, there is a higher risk of fraud and chargebacks and so the fees associated with high volume merchant accounts are higher. With a high volume merchant account, the processor may on occasion temporarily raise your processing limit when needed. After a period when you have processed orders, implemented fraud detection tools, improved your credit, and minimized chargebacks, then your merchant account provider may increase your processing limit.


    How to open merchant accounts for high-risk industries?

    Find out how to open merchant accounts for high-risk industries by contacting your chosen high-risk merchant account provider. The requirements may differ and some merchant account providers specialize in clients from a specific industry. For the approval of merchant accounts for high-risk industries, you will need to provide basic information about you and your business, including name, address, and phone number. You will also need to submit supporting documents including (but not limited to) Articles of Incorporation, Articles of Organization, names of owners and benefactors, ID documents, 3-6 months of credit card processing statements and a void check or letter from your bank showing that your accounts are in good standing. If you work in an industry that requires licensing, for example, gaming, you will need to show your business license. The high-risk merchant account provider will take time to assess and verify your information before approving or denying your application.


    How long it takes to open a high-risk merchant account?

    Although low-risk merchant accounts can be opened in one or two days, how long it takes to open high-risk merchant accounts depends on several factors. It will take a minimum of three to five business days to have your high-risk merchant account approved. It can take up to five weeks to get approval. The reason that approval of a high-risk merchant account takes so much longer is that the provider needs to do a far more in-depth investigation into the applying business. The payment provider will take time to verify your credit history, business license, personal financial history, and risk level of your company. The process can become even longer if you have neglected to submit all the required documents or if the merchant bank provider requests further documents. You also need to get approval from your acquiring bank. You can help the process run smoothly by being up-front about your business and provide all the required documents.

    What is the high-risk merchant account application process?

    The high-risk merchant account application process begins when you find a merchant account provider. Compare fees, terms, customer support, reputation, and the services provided by the merchant account provider. Check whether the merchant account comes with a payment gateway so that you have an all-in-one solution. Next, you can begin the application process by gathering all the relevant documents required by the merchant account provider. These include financial statements, business license, credit history, personal financial history, ID documents, and your processing history including number and volume of transactions, refunds, and chargebacks. You may need to show 6 months of processing statements. Together with the supporting documents, you will need to fill in an application form with general business and personal details. Review the terms and conditions of the merchant account agreement in fine detail before signing.


    Very-high-risk merchant accounts

    Very high-risk merchant accounts are for businesses operating in high-risk industries. Very high-risk accounts can also be for businesses with a bad financial and credit history; those selling services and products to countries known for high levels of fraud and businesses with a high credit card transaction volume. If a business has been rejected by several acquiring banks that are unwilling to take on the risk, then a very high-risk merchant account is needed. It may be difficult to get a very high-risk merchant account, but it is not impossible. The application process may be more complex, more supporting documents may be required and the fees will be higher but very high-risk merchant accounts are obtainable. 

    What are merchant account requirements?

    The requirements for setting up a merchant account vary depending on the provider. Ask your provider what are merchant account requirements. To open a merchant account first establish a business bank account. Then choose a merchant account provider and make your application. The application process will include providing supporting documents to show the legitimacy of your business, estimated processing volume, your credit history, and details about your business operation. Merchant account requirements usually include your business license, physical address, application form, personal ID documents, Articles of Incorporation, PCI compliance, business plan, voided check, and business policies.


    What are merchant account fees?

    Merchant account fees vary depending on your provider and your business. Generally, you will be required to pay an application fee as well as a percentage of the transactions and a per-transaction amount. Your merchant account provider will also charge a fee for chargebacks to cover the administrative costs of processing. A rolling reserve is held by the bank to protect against unexpected chargebacks and fraudulent activities. The rolling reserve can be about 5-10% of the credit card processed volume. The rolling reserve is held for a defined period and then released back to the business. Other merchant account fees may be a set-up fee, a monthly fee, annual fee, PCI fee, and an early termination fee. Read the terms and conditions carefully to make sure you know what you are going to be charged for your merchant account.

    High-risk Industries

    With the ever-growing online business industry, there is an increasing demand for merchant accounts and specifically high-risk merchant accounts. Online vendors have unique challenges when faced with card payments made online and many online businesses are considered at risk of fraud, criminal activity, returns etc.

    High-risk Online Businesses:

    • eCommerce
    • Adult entertainment
    • Online gaming
    • Affiliation
    • Online dating sites
    • Telemarketing
    • Travel services
    • Vitamin and supplement sales
    • Online auctions
    • Software downloads
    • Horoscopes
    • Telecommunications
    • Multi-level marketing
    • Online media
    • Forex
    • VoIP services

    Online businesses and high-risk Merchant Accounts

    A classic example of a high-risk online business is e-Gaming. Many factors go into making e-Gaming a high-risk industry including chargeback disputes, complex legal issues, international clientele, risk of gambling addiction, and money laundering. Any online business that handles a high volume turnover in USD and other currencies is vulnerable to fraud from both the customers and within the company. If your business has a lot of returns and refunds money will enter and leave your account straight away.

    This is not good for the merchant or the bank which may face regulatory penalties. Offshore Merchant banks are cautious of high-risk online businesses based in offshore jurisdictions getting caught up in fraud and money laundering. Merchant banks can also consider an online business high risk if it is a new startup with no transaction or credit history.

    Read more on Merchant Accounts and bank accounts for Gaming companies

    What are B2B transactions and B2B businesses?

    B2B (Business to Business) is when the customer is a business and not a private individual. As with individual consumers, the purchase may be for services, products or both. Examples of a B2B transaction include a business selling office supplies to another business or a business card being used to pay for a company meal. Whenever a business credit card is used to make a purchase it is a B2B transaction. B2B companies focus on other businesses as their main customers, offering their products and services to other businesses. B2B companies require a high level of merchant services to accept and process transactions which can be through purchase orders, business credit cards or corporate cards.

    What can a payment gateway do for your B2B business?

    A payment gateway allows B2B businesses to implement an online shopping cart; operate an e-commerce platform or securely accept credit card data using a POS system. Payment gateways facilitate the acceptance of transactions and invoices online. Other optional payment gateway functions include accumulating and saving customer data; automating recurring payments; implementing fraud prevention and security measures and more.

    Open a European high-risk Merchant Account

    Businesses finding a financial institution willing to open a merchant account for them may be difficult. The type of business may affect the level of risk associated with the merchant account. Luckily there is such a thing as a “high-risk merchant account” geared towards companies in certain high-risk industries.

    e-Commerce and High-risk

    There are many factors taken into account before a merchant bank will open a high-risk merchant account. Some of the indicators used to determine if an e-commerce business is a high risk include:

    • High level of chargebacks
    • Number of transaction cancelations
    • Refunds and returns
    • The business sells expensive items
    • A high volume of transactions
    • Sales involve future delivery of items
    • History of credit card fraud
    • Vulnerable to money laundering
    • Vulnerable to fraud
    • No transaction or credit history

    As an online vendor, you may not consider your business as subject to high risk but online commerce in general comes with a certain amount of risk. It may only be when you set up a payment gateway, merchant account and business account that you realize your business is medium or high risk. If you are disapproved for a regular merchant account you will need to apply for an e-commerce high-risk merchant account. Today this is a common occurrence for online businesses. Read more about it in our e-Commerce Offshore Package

    Best high-risk Merchant Accounts for online businesses

    Choose a merchant bank that has experience working with online businesses and high-risk merchants. Your account application may be rejected by many financial institutions, electronic money institutes, payment processors and merchant banks before you find the right bank for your high-risk merchant account. Finding the right financial institution for you can be challenging. High-risk merchant accounts incur higher fees and rates but don’t be fooled into paying an astronomic amount because you are in a high-risk industry. There are fair merchant banks that will open high-risk merchant accounts for a reasonable fee. If you need assistance finding the right high-risk merchant account for your online business feel free to contact us.

    high-risk bank account: High-risk bank accounts are for businesses in industries that are vulnerable to money laundering, excessive chargebacks, or financial failure. Businesses are also considered high risk if they have a bad credit history or sell high-risk products or services. To compensate for the risk assumed by the bank, high-risk bank accounts have higher fees and strict contract conditions. The terms of a high-risk bank account may include an early termination fee or a rolling reserve where an amount of the credit card processing volume is secured to cover any possible unexpected activity. When looking for the best high-risk bank account look for responsive support; anti-fraud security and reasonable fees.

    high-risk payment gateway Europe: The best high-risk payment gateway solutions in Europe should be easily and securely integrated into your website; accept and settle multiple currencies; include anti-fraud technology and offer support. With an EU payment gateway geared towards high-risk merchants, businesses from high-risk industries should be able to accept credit card payments online seamlessly. High-risk businesses need to secure a high-risk merchant account payment processor which often comes with a payment gateway. Both of these elements are essential for doing business in the EU and internationally. Among some of the providers offering payment processing solutions and high-risk payment gateways in Europe are EUPaymentz; SecurionPay and IBS.

    high-risk merchant accounts Europe: Businesses with high-risk merchant accounts in Europe can accept debit and credit card payments from buyers internationally. With a European high-risk merchant account, your business has the processing capacity to allow you to grow and manage your company. A good high-risk merchant account lets you offer customers a range of payment methods in multiple languages; fraud protection; a secure European payment gateway; customer service and good rates. Most acquiring banks in Europe accept only companies that are registered in Europe and can prove they have a presence in Europe. We can show you how to get approved for a high-risk merchant account in Europe.

    high-risk merchant banks: Businesses that are financially unpredictable, prone to chargebacks, have a bad credit history or are vulnerable to fraud or legal issues are considered high risk. There are merchant banks that are geared specifically to high-risk businesses and can provide the services needed to process payments even when other banks are not willing to take on a high-risk client. High-risk merchant banks charge higher rates and have more complex contracts that can involve conditions such as a rolling reserve and an early termination fee. A high-risk merchant bank can provide high-risk clients with POS systems, payment gateways, credit card terminals, customer service, fraud prevention and industry-specific services.

    open merchant account online: All businesses need a merchant account to accept credit cards and mobile payments. One way to open a merchant account is to visit a bank branch but if this is too time-consuming and inconvenient it is also possible to open a merchant account online. To open a merchant account, you will need to show your processing history, provide business and personal information including your credit score, and fill in an application form. Merchant banks need to comply with regulations, so you will be required to complete online identification verification procedures. You will then be sent the account terms and conditions to sign.

    high volume merchant account: High volume merchant accounts are for businesses that process an unusually large number of transactions each month or large ticket items. Regular merchant accounts can place a limit on your monthly transaction volume whereas high-volume merchant accounts allow you to grow your business without having your account suspended because you have passed your transaction limit. High volume merchants can be considered high risk as they can have issues such as a high volume of chargebacks and fraud. For this reason, it is important to choose a high-volume merchant account that gives you payment solutions, services, maximum processing volume, and the security you need.

    merchant account Germany: Many businesses choose to open their merchant account in Germany because it is a central European power with a strong economy and a reputation for advanced payment processing services. One of the main reasons to open a German merchant account is the good standing that will reflect on your business. With a merchant account in Germany, you can offer your customers different payment methods like PayDirect, e-wallet, third party bank transfers, credit/debit card and direct debit payments. Opening a merchant account in Germany is relatively easy, well-priced and comes with a full suite of services.

    high-risk business bank account: All businesses need a bank account where they can reconcile, store and access their funds. Banks put themselves in a vulnerable position when they take on high-risk companies that are prone to fraud, high-volume of chargebacks, negative credit history or because they trade in a high-risk industry such as gambling or e-commerce. To protect themselves from exposure to the risks of working with high-risk companies, banks impose conditions such as a rolling reserve, early termination fee and high charges. If you choose a business bank account where the bank has experience with high-risk businesses then they can provide you with the support, security and services that you need to run a successful business.

    Guaranteed Business Bank Account for High Risk Activities

    There is no guarantee that a bank will open a merchant account for your business. They will need you to meet certain criteria and conform to the risk parameters, KYC and AML procedures. It is entirely at the bank’s discretion whether it agrees to open your business account or not. In addition it is forbidden for the bank to enter into any discussion with the potential customer about the assessment of his business’s risk.

    What is a B2B virtual terminal?

    Although payment gateways and virtual terminals are similar and both are used to process credit card transactions there are fundamental differences. A virtual terminal acts as an online portal and facilitates online electronic payments. In addition a virtual terminal allows merchants to logon and enter credit card data manually. This is useful when the electronic payment is not a shopping cart solution. A payment gateway is integrated into a business website and facilitates online credit card transactions by retrieving data from the virtual terminal, authenticating the data and routing the credit card data to the payment processor. Payment gateway functions can include accumulating and storing customer payment details; fraud prevention; security and recurring payments. Gravity Payments can be integrated with many shopping cards, virtual terminals and POS systems.

    Offshore High Risk Merchant Accounts in Europe

    European banks have conservative standards and merchants are required to submit multiple documents including credit history and a record of transactions before they will open a new merchant account. European merchant banks categorize businesses according to the level of risk they present. Unfortunately e-commerce businesses are usually among those ranked as high risk and not accepted by European banks. For this reason many online businesses choose to open an offshore high risk merchant account where they will be accepted and the dealings will be discrete.

    Funds can be transferred from offshore merchant accounts to anywhere in the world and thanks to the offshore jurisdictions there are no tax liabilities. E-commerce businesses that can benefit the most from opening an offshore merchant account include casinos, biotech companies, sportsbooks, imitation products, travel companies, those selling tobacco products, Internet drugstores, adult entertainment and electronic cash businesses.

    Are electronic B2B payment processing systems secure?

    Payment processing systems handle sensitive credit card and debit card information with every transaction that is made. A B2B business payment gateway must comply with the Payment Card Industry Data Security Standard (PCI-DSS). Insuring your company is PCI compliant can be time consuming and costly but a good payment processor can handle all compliancy requirements for you. When selecting a payment processor find out what PCI compliant solutions they provide so that your customer’s payment data is protected and all your business needs can be met.

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