High-Risk Merchant Account Credit Card: 5 Tech Tips You Need to Know

High-Risk Merchant Account Credit Card: 5 Tech Tips You Need to Know

A high-risk account is needed for a high-risk transaction that is specially equipped to deal with such transactions. As high-risk merchant accounts have a higher chance of having a chargeback, they also come with a higher charge for the services rendered by the merchant.

It is recommended to have a chargeback ratio lower than the 0.9% of your total transactions. However, a high-risk Merchant account has certain characteristics based on a certain payment pattern of the processor. Certain characteristics include the sales volume should be more than $20,000 per month. The average credit card transaction should be higher than $500 if the products and services are sold in countries known for high fraud. Suppose the country has a bad credit history and excessive chargebacks, which depends on the credit score.

The benefits of High-risk merchant account

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There have been various advantages in choosing the appropriate service provider. The advantages of having a high-risk merchant account are as follows:


This feature enables the account to be put in a healthy and operational situation regarding high-risk offshore credit card processing. For example, a merchant with a regular pattern of crossing the chargeback limit has the highest chance of the account being terminated. Thus, there is a need for a high-risk merchant account which may equal a pause in taking credit payments. On the other hand, it is much easier to maintain the running condition of the high-risk merchant account. This type enables the business to put special attention to chargeback management.


Having a high-risk merchant account enables businesses to sell various products and services, which is impossible in a low-risk merchant account. This enables a wide range of products and services to be sold in a longer duration of time. This gives the business more and more opportunities to expand the business regarding the wider spectrum of services and products to be sold.


The best advantage of having a high-risk merchant account is the chance of increasing profits in the transactions. The increase in the profit enables the businesses to earn a higher percentage of profit from the business transactions in case of high-risk products and services. The merchant accounts for high-risk transactions are specially designed to mitigate the transaction.


The high-risk merchants enable the business to have global coverage by accepting the transactions in multiple currencies and sell to clients with offshore accounts regarding high-risk merchant processing. This holds larger access to the market worldwide in low-risk markets as well.

Tip 1: Researching for high-risk service providers

The most important factor in choosing a payment processor for high-risk merchants regarding a high-risk provider is researching the various options available out there. Various payment processors charge exorbitant pricing ranges using inflated and predatory methods of the rising price range. The process of avoiding such service providers is just by doing thorough research about the realities of options online. The research comes up with the possibility of getting a service provider that has already worked with the same type of business.

It is advised to look and select a high-risk merchant with a superior quality website that is clean. The website should include any form of pricing or a link to have the possibility to quote for the service required. It is also advised to read through the regulations while opting for a merchant dealing in high-risk transactions. The high-risk merchant processing also requires a specialized payment processor suitable for the nature of business.

Tip 2: Transparency with the payment provider

The best way to enable the most efficient factor is to be transparent to the service provider in high-risk transactions. Failure which might result in excessive pricing and inaccurate quotes for the service. The transparency is maintained to such a level that, if requested, provides the merchants with various types of information. This information includes previous financial statements, credit history, and the individual account history of the merchant. The accurate quotations regarding the service also enable a sense of transparency.

 Tip 3: Choosing a multifaceted Payment processor

While choosing a payment processor business, look out for multifaceted properties which can meet all the requirements regarding high-risk processes. This enables businesses to choose a processor that provides multiple payment service providers. The multiple services that are provided include the following:

1. POS system

  1. Credit Card terminals
  2. Payment gateway
  3. Mobile payment solutions
  4. Integration

However, these services are not included in basic packages offered by different types of service providers for the base rate of the high-risk merchant account. This can opt as long as the service providers are evenly priced and are offered by the service providers.

Tip 4: Choosing a short-term provider

With ample research and exploration of various processes, it can be understood that these high-risk processes require a long-term contract. The problem with long-term contracts is that it is difficult to change the contract. The nature of the requirement of the business may be subject to change with passing the time.

Many merchant service providers lock their merchants into long-term contracts. This can be avoided by being direct about the contact length and reading the fine print. This is followed by an automatic renewal clause which might take the businesses by surprise. It is ideal for businesses that deliver flexibility through tight mouth-to-mouth contracts. This enables a much more flexible approach in changing the contract with business changes regarding high-risk merchant processing.

Tip 5: The provider that values service is ideal

A payment provider that values service is a key element in having a smooth relationship between the service provider and the business. These providers will provide services, including training and maintenance, 24 into seven support, and troubleshooting. The entire process can be understood by referring to the reviews by other customers.

The five tips mentioned above have successfully enabled various businesses to adhere to the benefits of a huge-risk merchant account.


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