High Risk Payments FAQ

What is a high-risk merchant account?

A high-risk merchant account is an agreement between a merchant and a bank. It acts as legal permission to accept credit card payments online. It also allows accepting wires, E-wallet payments, crypto, debit cards, and international (local) payment methods of merchant's choice. To get a high-risk merchant account, one needs to fill out the application. Once a payment system provider approves the application, a merchant receives a payment gateway, the software that allows accepting payments online.

Who needs a high-risk merchant account?

A high-risk merchant account is a must for all the high-risk merchants who are willing to accept payments online. To find out whether your business is high-risk, see the list of high-risk industries below.

What industries are high-risk?

The main reasons why some industries are considered high-risk are a high level of chargebacks and a company's business nature. Take a look at the list of most popular high-risk industries:

• NUTRA (nutraceuticals)
• Pharmacy
• Forex
• Travel
• CBD oil
• Escort
• Online dating
• Casino
• Gambling
• Gaming
• Sports betting
• Adult
• Crypto exchanges
• E-cigarettes

What is the transaction fee?

The transaction fee is a percentage of money (sometimes a fixed price) charged by a PSP for every online purchase made on a merchant's website. Let's say you sell items for $100 per each. Your PSP's transaction fee is 1.2%. If someone buys a product on your website, the PSP of yours charges $1.2 while you keep all the rest. The transaction fees for high-risk businesses are always higher than those for low or middle-risk businesses. The possible risks are to blame.

What are chargebacks?

Chargebacks are the disputes made by clients that are dissatisfied with a quality of a purchase or claim it to be fraudulent. If a client decides to apply for a chargeback, he/she fills in the form at a bank. If the bank finds the dispute valid, the funds are automatically charged from a merchant's bank account and transferred to a client's bank account.

How to apply for a high-risk merchant account?

To apply for a high-risk merchant account, you need to choose a payment system provider (PSP). There is a wide range of solutions on the internet. Some of them are processing high-risk merchants, while others are only processing low and middle-risk businesses. Consider your GEO, as well. Some PSPs work in Europe, U.S.A, India, e.g.. However, some offer payment services and solutions internationally. Once you have chosen a payment provider, you have to fill out the application form. It will be sent to you after registration on a provider's website. You will also need to attach some essential documents to your application. See the list of documents below.

What documents I need to open a high-risk merchant account?

Take a look at the list of documents to open a high-risk merchant account:

• Certificate of Incorporation
• Certificate of incumbency
• Local documents as per company jurisdiction which displays company directors and owners
• Utility bill/Bank statement/Rental agreement under corporate names proving company location
• Valid ID copies for all company directors and owners

What are website requirements to open a high-risk merchant account?

To get processed, you will also have to adjust your website: Create Privacy Policy, Terms & Conditions, and Contact Us pages. The latter must contain the legal person and address, email, and contact phone number. Add age verification. Some businesses (adult, gambling, escort) must add age verification to their websites. Some high-risk merchants need to provide additional documents to prove the legitimacy of their enterprise. Once your high-risk merchant account application gets approved, you get a payment gateway and start accepting payments online. Follow the link to register and get an application for a high-risk merchant account.