When you apply for a merchant account, providers and banks have a specific set of criteria that determine whether you are a low-risk or high-risk business. High-risk merchants tend to be more susceptible to payment scams and chargebacks and may need to pay higher fees as a result.
Since there is no strict list of factors to determine whether you are a high-risk merchant, it’s important to explore several options to find the most cost-effective payment processor for your business. Some providers may be more tolerant to risk and provide more competitive rates than others.
To determine whether you might be considered a high-risk business or not, here are some signs you should look for:
If you are labeled as a high-risk merchant by a payment processor, you may still be able to negotiate listed rates to make them more affordable. Many high-risk merchant accounts come with a variety of useful services including payment encryption, multi-currency support, and more.
Learn more about the average annual fees for high-risk merchant accounts here.
Florence Carpenter is passionate about ensuring that the process of opening merchant accounts is as straightforward as possible. She graduated from the University of Michigan with a bachelor’s degree in Marketing.
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