Merchant guides
What is a high-risk merchant account?
A high-risk merchant account is a card processing account from a bank that knowingly accepts businesses most processors avoid, because of what they sell, their chargeback history or how they bill. It works like any other merchant account. The difference is closer underwriting, and sometimes a reserve.
What makes a business high-risk.
- What you sellAge-restricted and regulated products such as vapes, tobacco, kratom, hemp-derived products and supplements.
- How you billSubscriptions, free trials and large single sales draw more disputes.
- Your historyA high chargeback rate, a past shutdown or a MATCH listing.
- Where you sellOnline-only sales carry more fraud risk than in-person sales.
What changes compared with a regular account.
- UnderwritingThe bank reviews your products, website, policies and processing history more closely before approving you.
- ReserveSome accounts hold a small percentage of sales for a period to cover chargebacks.
- PricingRates are usually somewhat higher, because the bank carries more risk.
- StabilityThe upside: the bank approved your category on purpose, so the account isn’t closed the moment someone notices what you sell.
Merchant accounts by business type.
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FAQ
Common questions
Is a high-risk merchant account more expensive?
Usually somewhat, because the bank is taking on more risk. The difference depends on your category, history and volume. You should see the full cost, including any reserve, before you sign.
What is a rolling reserve?
A set percentage of each day's sales that the processor holds for a set period, then releases. It covers refunds and chargebacks. Not every high-risk account has one.
How long does approval take?
Most complete files are decided within days. Missing documents are the usual cause of delay.
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