Every bank operates with a set of guidelines used to determine if a potential merchant’s business is high risk. All these guidelines vary from bank to bank. As a leading credit card processing company, our experts share more insight into why certain businesses may require high-risk merchant accounts.

If your bank is unwilling to accept the risk associated with your industry, you will need a high-risk merchant account.

Banks weigh the risks associated with a business. If the bank you choose for your merchant account believes that your business is prone to too many chargebacks, customer complaints, and falls within the grey area of the law–CBD for example–then your business will be considered high risk. Banks are often hesitant to manage high-risk merchant accounts.

This is a subjective process and every bank’s underwriting department follows a specific set of guidelines that the bank has outlined.

After over 20 years of experience providing high-risk merchant accounts for businesses, we understand exactly how the system works, working with banks and ISOs to ensure that your business is allowed to open a merchant account. We have relationships with more than 30 financial institutions, ultimately allowing us to apply for a high-risk merchant account from the best banks likely to approve your company with the best rates and terms.

Why Are Certain Businesses Considered High-Risk?

There are many reasons why businesses are considered high risk, including:

• The business might be on a TMF/ MATCH list or the industry you’re in is known for high chargeback ratios.
• Perhaps you have a type of business that sells expensive items – furniture, jet charters, seminars, or tax resolution services, for instance.
• Maybe the business guarantor has personal credit that isn’t the best, tax liens, or other financial issues.
• Membership and subscription businesses with automated recurring billing.