Choosing the Best Merchant Account for a High-Risk Business

Choosing the Best Merchant Account for a High-Risk Business
Choosing the Best Merchant Account for a High-Risk Business

Choosing the Best Merchant Account for a High-Risk Business High-risk merchants tend to be those that operate in industries that payment processors view as having a higher level of risk. These can be industries that have age restrictions, legal gray areas, or other complications. Some examples of high-risk industries include online gaming and medical marijuana.

What is a high-risk merchant account?

A high-risk merchant account is used by businesses that have a high-risk business profile. These include industries such as gaming, contact lenses, and online gaming. The biggest risks that come with high-risk merchants include processing low-balance transactions, multiple processing transactions in a short period of time, suspicious transactions, or transactions of a different volume than usual. How do you choose a high-risk merchant account? It is best to meet with your merchant provider in person. At this time, you should discuss what your business profile entails, the industries you operate in, and what type of merchant account that you require. Once you know what you are looking for, you will be able to narrow down your options based on what your provider offers.

Why do high-risk businesses need a different merchant account?

Advantages of high-risk businesses High-risk merchants need a different type of merchant account. The advantages of a merchant account for high-risk merchants include the following: Partnerships with providers of software that support this kind of business and needs Partnerships with technology and other providers that give you access to multiple payment types Compatibility of your merchant account with other services you offer to high-risk customers. High-risk business customers who are purchasing large-volume products from you or using a business to process large-volume transactions, like a food truck, for example.

How to find the best high-risk merchant account for your business

These are not always the same accounts you should focus on when you’re searching for your high-risk merchant account. Some have terms such as zero liability that make them not suitable for businesses looking to accept credit card payments. And if your business has a high fraud risk, you’ll need to be aware of the fact that PayPal has a customer safety guarantee. This means PayPal will refund your money for a chargeback where the customer disputes a charge for a product or service. So, what is the best type of merchant account for high-risk merchants? The Merchant Services Center is an online service that is provided by PayPal and allows businesses to compare all of their potential options.


As you can see, there are many factors that can contribute to choosing the best merchant account for your business. This list is certainly not complete, but it is a good place to start. As you compare different merchant service providers, remember that there is no single best solution for every business. There are a lot of factors you need to take into account before making a decision, and that’s what you will continue to see in this guide.


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