A high risk merchant account is a type of payment processing account that’s tailored to meet the needs of businesses with higher levels of credit card fraud, chargebacks, and other risks. The best high risk merchant accounts will provide a range of processing services, including ACH payments, eChecks, and cryptocurrency. They will also help mitigate chargeback risks with specialized tools like real-time chargeback monitoring and advanced fraud detection.
Many factors contribute to a business being labeled high risk, from newness to unfavorable credit records and low credit scores to volatile industries like adult products/services, gambling, or subscription services. Even a single chargeback can flag an account as high risk, putting it at risk for future freezes and possible termination. To get reclassified as low risk, businesses should work to reduce chargeback rates by implementing strategies such as clear refund policies and exceptional customer support. They should also focus on maintaining financial stability by ensuring consistent revenue and managing cash flow, as well as by demonstrating that they take security seriously with SSL certificates and other proof of secure transactions.
It’s important to find a payment processor that works with high risk merchants and is familiar with the industry you operate in. Checking the Better Business Bureau, online reviews, and terms and conditions page can reveal important information about the quality of a processor’s services and its willingness to work with volatile industries. A good high risk merchant account provider should offer flexible payment solutions, reasonable rates, and reliable support.
