Everything you wanted to know about High risk payment processors.

The high-risk payment processors are targeted at a completely different market than normal merchant accounts. However, there is one thing that we can say about high risk payment processors: they are great for many different industries and types of businesses. If you have some experience with high risk payment processing, this guide will help you understand what it means to be approved for one of these services and how to get started with them!


What are High-risk payment processors?


Highrisk payment processors are for businesses that have a high chance of chargebacks. They are not the same as normal merchant accounts and are not for every business.  Personal Loan in UAENew and Old Car LoanHome Mortgage LoanCredit CardsBusiness Loan

High risk payment processors are for businesses that have a high chance of fraud or other problems with customers, such as:

High volumes of chargebacks (where customers return their purchases) which may cause your business to lose money in the long run;

An inability to verify whether the person trying to make payments is really who they say they are;

Issuing too many refunds after receiving payments from customers;


Why are the high-risk payment processors required?


You may be wondering why your merchant needs a high-risk payment processor. The answer is simple: because they sell a product or service that is deemed to be high risk by the financial institution that’s processing their transaction.


For example, let’s say you’re selling marijuana online and have just opened up shop. Your business is now selling recreational cannabis products in California, which means that if anyone tries to purchase anything from your store, it will be considered illegal by law enforcement agencies across the country (and possibly even abroad). This makes it very risky for banks and credit card companies to work with businesses like yours because they don’t know whether or not what they’re doing will get them in trouble with authorities down the road.


Who needs to use a high-risk payment processor?


High-risk payment processors cater to a completely different market than normal merchant accounts. High-risk payment processors are for high risk businesses, industries, and individuals who need the extra security of knowing their transactions will be processed quickly and securely. These types of businesses include:

Online gaming sites and gambling sites (eGaming)

Adult entertainment companies, including adult movies, dating sites, and escort services (Adult Entertainment)

Major retailers that sell luxury items such as cars or watches (Luxury Retail)

What are some examples of high risk payment processing industries and industries?


Adult Industry


Telemarketing and telemarketing fraud.


What do you mean by chargebacks?


Credit card processing Chargebacks are a common problem for merchants. They’re when a customer disputes an item that they bought from you and requests their money back from the card issuer (like American Express or Visa).

To prevent chargebacks, you need to make sure that everything is as advertised and complete before shipment. You can also add fraud prevention features like two-factor authentication (2FA) or tokenization so that even if someone tries to make chargeback claims, it won’t work because your data is secure with these security measures in place.


Does the industry type matter when trying to get approved for high risk payment Processing?


There is a difference between high and low risk payment processors. The higher the risk, the more likely you will be approved as a merchant. Conversely, if your business has been around for a long time and has a history of consistent payments, then you may have some trouble getting approved for these services.

The good news is that there are many other methods available to accept credit cards online in addition to accepting MasterCard or Visa’s branded cards through their high-risk service providers like PayPal Here (for example).


How does a high risk Payment process work?


If a high risk payment processor is used, the customer’s purchase goes through as normal. However, if there is a dispute with the transaction or a reversal of payment occurs for any reason, then you’re out of pocket. This can happen for many different reasons:

The customer disputes their card being charged at all

The merchant doesn’t receive confirmation that their charge has been authorized by PayPal (which happens often)

A technical issue causes your bank to cancel or reverse your transaction


What are some of the things that will increase your chances of approval with a high-risk merchant account provider?


The first thing you should do is have a good credit score. If your business plan has any holes or if you’ve had previous problems with the bank, then it’s unlikely that your account will be approved.

You also need to make sure that your business history is positive and consistent with what they are looking for in terms of risk levels. In other words, if there’s been a lot of negative feedback from customers over the years but now everything seems fine again then don’t expect approval just yet!


What kind of customer support can I expect from the high risk payment processors?


High risk payment processors offer 24/7 customer support. This can be done in the form of live chat, email, or phone calls. They also have online help portals where you can submit queries to their team members and get answers to your questions within a few hours.


High risk payment processors offer different types of customer support depending on the type of business you are in:


Small businesses will have access to dedicated accounts managers who will help them with any issues that arise during transactions; this includes setting up merchant accounts, verifying identity, and addressing any issues related to fraud prevention or security concerns.

Large companies have dedicated teams working 24/7 even if they don’t need immediate assistance because they know how important it is for these companies not only to survive but thrive as well! 

High risk payment processors cater to a completely different market than normal merchant accounts.

High risk payment processors cater to a completely different market than normal merchant accounts. While standard merchant accounts are used by businesses that have a higher risk of chargebacks, high-risk payment processors are designed for businesses with no more than a 1% annual chargeback rate.

High risk payment processors are not the same as standard merchant accounts, but they do share some similarities: both types of providers have access to a variety of credit card processing services and can accept payments from all major brands like Visa or MasterCard.

The biggest difference between these two types is in their processing fees. Standard merchant account providers charge 2% plus $0-$5 per transaction; high-risk providers typically charge 1%-2%.




When it comes to high risk payment processing, you need to be aware of the industry type that you work in. This will help your company determine which provider would be best for them. If you are still unsure about any information we gave or have any questions about what type of merchant account is right for your business, contact us today!

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