High Risk Merchants

High Risk Merchants are businesses operating within industries perceived as high risk by payment processors and acquiring banks.

The spectrum of high risk industries is broad and can encompass businesses that sell age-restricted products like alcohol and tobacco, businesses in industries known for high chargeback rates like travel and hospitality, and businesses that operate primarily online.

  • Other factors that could label a business as high risk include the following:
  • the nature of the products or services being sold
  • the business model
  • the merchant’s credit history
  • the geographical locations served by the business

As high risk merchants, these businesses often encounter difficulties in securing merchant accounts, or may be subject to higher fees for payment processing services. Furthermore, they may be required to agree to longer settlement periods or to maintain certain reserve balances.

Despite these hurdles, numerous high risk merchant account providers cater specifically to these businesses, understanding the inherent risks and providing tailored solutions to navigate the complexities of high risk payment processing.