Things To Keep In Mind As A High-Risk Merchant

Brian Eugen
By Brian Eugen 6 Min Read
6 Min Read

Any business initiative inevitably involves risk, but not all risks are created equal. Some sectors and business tactics offer big sales at the expense of increased fraud and chargeback risk. Merchants in these markets may be designated as high-risk merchants, and payment processors may compel them to open high-risk merchant accounts. Higher fees and prohibitions to decrease the high-risk payment processors apply to these accounts. This article will tell you what to keep in mind as a high-risk merchant who is trying to open a new account.

Look for a service that focuses on high-risk merchant accounts

When looking at a list of the “top merchant service providers,” you’ll see that those highly ranked for low rates and excellent service don’t give merchant accounts to high-risk firms.

A payment processing provider that deals specifically in high-risk accounts will be able to provide you with not just more alternatives but also lower charges. In addition, they can set up an economical and personalized account for your business since they understand the subtleties of setting up a high-risk merchant account.

Keep the costs in mind

Unfortunately, you will unavoidably have to pay more significant fees than a legal firm because of your high-risk merchant status, even if you utilize a specialty provider. You can expect to pay between 2 and 5 percent of each transaction, with account fees varying based on the services you use.

READ ALSO:  A Brief Introduction to RouteGenie

Nobody will provide you with the slick rates and attractive discounts that most processors promote. It’s critical that you understand this so that you don’t dismiss a potentially excellent service for your company simply because the price is significantly greater than what you’ve seen elsewhere.

Determine your processing requirements

A high-risk merchant account has the exact fundamental requirements as any other. However, because you must pay higher fees and rates, you must carefully consider your company’s services and equipment to cut expenses.

It might be challenging to determine precisely what you require and what you can go without. While the expenses of some services may appear prohibitive, the greater earnings from more sales are frequently justified.

Consider whether you require the following items:

  • Credit card terminal – Customers are increasingly preceding carrying cash in favor of the ease of credit card payments. You’ll also consider whether you require an NFC-capable terminal to accept contactless payments like ApplePay.
  • Mobile Payment Solutions – If your company is always on the go and needs the ease of processing payments at any time and location, you’ll need a mobile payment solution. On the other hand, if you’re usually in the same spot, you might want to spend your money on something else.
  • POS System – A POS system is the modern-day standard for shops, stores, and retail enterprises worldwide if you want to smoothly combine your in-store and online management programs, tracking tools, and ordering and payment process.

E-commerce support

Ecommerce support is entirely unneeded if you solely want to run a physical business. If you only do business online, on the other hand, the correct e-commerce solution will become the foundation of your company.

READ ALSO:  How To Choose The Right Packaging Equipment For Your Business

However, before you can start selling your items online, you’ll need to set up a secure yet user-friendly e-commerce payment gateway to make your clients’ online shopping experience easier.

Opt for a month-to-month contract

A month-to-month contract for any merchant account is always the safest alternative, especially if you’re high risk. Unfortunately, getting a provider to agree to a month-to-month agreement is more challenging if your organization is considered problematic.

While a month-to-month contract is preferable, most high-risk merchant account providers will hesitate to give one. If you’re unsure how long your company will last, you should negotiate for more fees elsewhere to have a more flexible contract.

Negotiate prices

Because setting up a high-risk merchant account isn’t a simple procedure, most high-risk processors won’t be able to provide you with any rates or fees upfront. To provide you with high-risk payment processing solutions, you must first interact with various third-party companies and services.

This means you’ll need to do some price haggling to get the most incredible bargain for your company.

You’ll have to pay more for processing and your account as a high-risk merchant. However, depending on your company’s payment processing demands, you should try to decrease one or the other by negotiating.

Request an interchange-plus pricing plan to reduce your processing expenses further. Interchange-plus rates are more complex, but they are also less prevalent than tiered rates. Although getting a merchant account provider to agree to interchange-plus rates is challenging, it’s still worth attempting.


Setting up a high-risk merchant account is undoubtedly a difficult task. However, if you follow these guidelines, you’ll be able to create the ideal vehicle to transport your company to a thriving town. The key is to exercise caution when choosing high-risk payment processing partners and merchant service providers.

READ ALSO:  The 8 Factors To Keep In Mind While Buying A Smartphone
Share This Article
Brian Eugen is a tech-savvy wordsmith with a knack for captivating readers through his expertly crafted tech blog articles. His passion lies in dissecting the intricacies of technology, particularly in the realms of Android, Windows, internet, social media, gadgets, and reviews. With a deep understanding of the latest trends and a talent for simplifying complex concepts, His articles offer readers valuable insights and up-to-date information. His expertise in writing and genuine love for all things tech make him a trusted source in the digital landscape.
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *