Who Needs a High Risk Merchant Account?

Service provider accounts are required in order for a business to accept credit card payments. As a merchant, there are two places you’ll be able to get hold of a service provider account; a bank, or a third party provider. For on-line retailers the preferred, and in most cases cost effective, source is from a third party service provider account provider.

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


Fraudulent Transactions

High volume of gross sales

High rate of refunds

High rate of charge-backs

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

Retailers Location – Some service provider account suppliers will not accept merchants from certain countries.

The Product/Service the merchant sells is illegitimate in some jurisdictions.

Merchant Credit History – Some suppliers is not going to settle for retailers with poor or no credit history.

As a result of high risk classification, most banks is not going to present a service provider account to those in a high risk industry (corresponding to adult leisure, replica goods, pharmacy and many others). As such some third party suppliers offer their companies to each normal merchants and high risk merchants.

Service provider account providers which were developed to service high risk merchants will typically provide a higher level of fraud protection, so as to lower the cost their retailers incur. However, with a purpose to cover the higher level of risk, rates for a high risk service provider account will at all times be higher than their lower risk counter-parts.

When searching for a high risk merchant account, there are a number of factors that you must take into account. Rates will be one of the most necessary factors, and this consists of charges for refunds and charge-backs, together with transaction fees, the discount rate and ongoing fees. Then you will have to think about fraud safety, customer support and reporting available to you as a online gaming merchant account and payment gateway.