low risk merchant account. We recommend the following steps when your account is terminated: Reach out to Paypal for a status update – this will likely result in you waiting for up to 180 days as they audit your account. low risk merchant account

 
 We recommend the following steps when your account is terminated: Reach out to Paypal for a status update – this will likely result in you waiting for up to 180 days as they audit your accountlow risk merchant account Low-risk merchant accounts are designed for businesses that have a consistent volume of sales, low returns/chargebacks, and are in well-established

High-risk merchant account providers can be located that offer accounts with reasonable associated fees. They’re so well-established in fact that they work with over 60,000 merchants. ProMerchant’s rates are 0. 2. Low-risk businesses are easier for merchant service providers to trust. For example, if you’re a business owner with a bad credit score, and you went through several unsuccessful attempts, you still have a chance to accept credit card payments, but you have to find the. A high-risk gateway is essential to accept credit cards and other digital payments. If you are a vaping merchant, you will need a. Due to the division of businesses into low-risk and high-risk merchant accounts by payment processors, this is the case. Low-risk merchant accounts are less expensive and have fewer requirements, but are only available to businesses in low-risk industries. Not only do we have highly competitive rates, but we also provide 100% transparency and top-notch customer service. If you’re considered a “low risk” merchant, that’s good news! You can expect to have significantly more choices of merchant account providers than your “high risk” peers. net is a payment gateway company that provides payment processing options for businesses, especially small and independently-owned businesses. We specialize in providing merchant account and high-risk merchant accounts. A high-risk merchant account is a specially designed payment solution that enables businesses in high-risk industries to accept card and electronic payments. Considering that it really takes a longer period for the setup of these accounts unlike low risk accounts, a day is indeed significantly quicker. Low-Risk Merchant Accounts. In-person payments cost the merchant a fee of 2. As your Store starts to get hit with chargebacks, your fees significantly increase and can get your merchant account frozen or terminated, especially when working with low-risk processors such as Shopify Payments/Stripe. 2. High Risk Merchant Accounts. k. Get access to deeply-discounted interchange rates to keep your payment processing costs as low as possible. Of that 1%, even fewer actually ARE “High Risk” Providers and aren’t simply making a run at picking up extra business. Your fees are contingent on several factors, such as the merchant’s processing history, type of industry (high or low risk) and/or projected sales volume. Best one-stop shop: First Card Payments. Simple application process: submitting an application for your high-risk merchant account is so straightforward. The amount of the rolling reserve will be determined by the processor based on a number of different factors. First of all, it’s important to understand the difference between being a low-risk and a high-risk merchant. net Gateway. 05%-0. Only one type of currency is accepted. If you qualify for a high risk merchant account, expect to pay slightly higher fees. A merchant account scam is designed to be appealing to new merchants and startups, especially high risk merchants. This is the fee that is charged for integrating the services to the merchant application. One unique feature offered by HMS is that free web hosting is included with your merchant account, making it that much easier to get up and running for online sales. In the United Kingdom, it is roughly 3. net is a payment gateway solution from Visa. For the approval of a high-risk account, merchants need to have a solid credit history and chargeback management records. PaymentCloud: Best For High-Risk eCommerce Businesses. You can expect to pay on average ~$100 per month for a high risk merchant account, on top of a $500 credit card merchant fee. 6% plus 10¢ per transaction. A high-risk merchant account is a service that Payment Service Providers (PSPs) offer so that entities in fraud or chargeback-prone industries can accept card payments. Another well-established provider, CorePay caters to both low and high risk merchants by providing tailored solutions that meet each business where they stand. Given their low tolerance for risk, there’s a high likelihood that long-term processing via one of these platforms, like Square or Stripe, will result in an. High-Risk Payment Processor Requirements. Skip to content (877) 996-2795; Merchant Accounts; ABOUT. For example, you will be considered as a low-risk merchant if your business has $20,000 or less monthly sales,. Obtaining an adult merchant account can be hard if banks consider your business high risk. Though, high-risk merchants need to pay extra than the traditional merchants. For instance, one of the disadvantages is the fact that it might take longer to obtain one than it would in the case of a low-risk merchant account. For example, rolling reserves to counteract the risk of loss to the merchant, additional PCI considerations and regulatory demands. Let’s Understand The Low-Risk Merchant. Additional fees: Additional fees include PCI compliance, account setup, statement generation, and customer support. Medium and Low Risk Merchant Accounts. 3% plus interchange if you’re among the low-risk merchants. Here’s how this process works: 1. Low-Risk Merchant Account There are a few differences between a low-risk merchant and a high-risk merchant in the eyes of a payment processor. Here are the major differences between low risk and high risk merchant accounts. Based on various characteristics, credit card processors divide merchants as either high risk or low risk. Treati. A low-risk merchant may need to meet many requirements; however, the most important are: low revenue, few transactions, and low chargebacks and returns. In the world of merchants, the ability to process credit card transactions is vital to the survival of your business. If a merchant has a high chargeback rate. The primary differences include the following: High-risk merchant accounts usually require a much more extensive underwriting process before the account can be approved and you can begin accepting credit/debit card payments Corepay is a newly established merchant account provider that accepts both low-risk and high-risk merchants. A high risk merchant poses more of a financial risk to the processing company. You might get a rate of about 0. High-Risk vs. See full list on corepay. processing application (MPA) that is signed and completedHigh-risk merchant accounts allow risky business ventures to take credit/debit card payments from customers. These industries. The main difference between a high-risk merchant account and a low-risk merchant account is that the former operates in scenarios that are deemed to be extremely risky as outlined above. The second thing you need to know is the type of merchant account you’ll get with your application. 25/keyed-in transaction (volume discounts available) Best all-around virtual terminal. Helcim : Best All-in-One Platform. Higher payment processing fees. These risks could range from a high likelihood of chargebacks and fraud to legal. Such businesses are in industries that see minimal chargebacks, fraud, or returns due to their lower risk factors, making them an attractive option for payment processors. Only one type of currency is accepted. Low-Risk Merchant Account High-Risk Merchant Account; Transaction volume: Less than £16,000 per month: £16,000 per month or more: Average transaction size: Less than £400: £400 or more: Country of operation: Low-risk country (e. It offers and contains all the features just like the regular and domestic merchant account. Underwriting process: The payment processor conducts a thorough review of the business’s industry, financials, chargeback history, and other relevant factors to determine the risk level. clothes, shoes, kitchenware, food. The company’s EPD Gateway is its primary product, with merchant accounts provided through partnerships with numerous major US and international processors and banks. While low-risk merchants must pay the chargeback fee, high-risk merchants must pay a larger chargeback fee. GoCardless Last editedDec 2021 — 2 min read Table of contents Merchant accounts explained What is a high-risk merchant account? What is a low-risk merchant? In. Square: Best Merchant Services For Low-Volume Businesses. Visit Site. A high risk merchant account is a type of payment processing account for unique businesses. It should be mentioned that there are low-risk merchant accounts that can permit all the . As long as you only sell legal products and services, Corepay can probably accommodate your business. Most of the merchants in the E-Commerce industry are challenged to keep the balance between the increase of revenue and fraud levels. Since you open a. Here's a rough guideline to help you differentiate between a high risk and low risk business. We recommend the following steps when your account is terminated: Reach out to Paypal for a status update – this will likely result in you waiting for up to 180 days as they audit your account. The short answer: A high-risk merchant account is the solution to a high-risk business’s payment-related problems. The funds from customer payments need to go somewhere with the business name on it. If the business has low to zero chargebacks. But these obstacles shouldn’t stop you from running your perfectly legal and profitable business. Discount feeComparing Fees and Terms: High-Risk vs Low-Risk Merchant Accounts. Which you prefer for order and transactions i. High-risk businesses are also more likely to have returns, refunds, and chargebacks. Simply keep in mind that we determine our rates based on your monthly processing volume as well as your individual business’s risk factor, but our rates can start as low as 6. Generally, a low-risk merchant account comes with limitations, and its fee is also low. phone order or online. To qualify for low risk merchant accounts, your business will fit the following description: You process less than $20,000 per month; Your average ticket size is less than $50; Zero to low chargeback ratio; You operate within a low risk industry; You are incorporated in a low risk country The Difference Between Low-Risk & High-Risk Merchants. It is possible for the bank to place a rolling reserve. Almost any high-risk industry can apply for a merchant account with SMB Global. Low-risk merchant account. It can also include. ) When evaluating a high-risk business, merchant service providers must review the merchant application, conduct a thorough risk assessment, and check the business owner’s credit score. Durango Merchant Services has been in the hard to acquire and international electronic payments industry for over 20 years. A high-risk merchant account operates as a specialized business account for high-risk businesses. Low-Risk Merchant Accounts vs High-Risk Merchant Accounts. A low-risk term will be PCI-compliant and will ensure all data it stores and uses is kept private and works in the right hands. Comparing high-risk and low-risk account holders. It offers fast and easy. There are no application or setup fees when signing up for an account. Average card transaction is below $500. Your average ticket size is significantly less than $50. It is best to find a high-risk processor who understands the needs of businesses with bad credit. This facility is unavailable to those who want to play safe and opt for low-risk merchant accounts. A high-risk merchant could be required to seek additional agreements, an early termination fee, or. Low-risk merchant accounts are designed for businesses that have a consistent volume of sales, low returns/chargebacks, and are in well-established industries. These include reduced fees and less of a need. Click to get a free quote or call our experts at 888-302-8472. In order to be considered low-risk by underwriters, your business needs to meet the following criteria: Your business processes lower volume. Low-risk accounts are at a far lower risk for economic issues like fraud and chargebacks, while high-risk accounts are more likely to have these financial issues. While you get a transparent rate with a low-risk account, it is much harder to cost a high-risk account. Since high risk businesses are more likely to experience chargebacks, they have to pay higher fees for the merchant services. High-risk merchant accounts differ from low-risk accounts in the following ways: Almost always a full-service merchant account (PSPs typically don’t accept high. Albeit new to the industry, CorePay has effectively worked with countless merchants by providing polished merchant account services that put safety, security, and efficiency. Many companies consider this to be having a merchant account. High-risk merchant accounts are for businesses in high-risk industries that sell high-value products or services, have a history of frequent chargebacks, and have an. Those who prefer to err on caution and use low-risk merchant accounts don’t have access to this resource. In order to process those credit card transactions though, you need a low risk merchant account with an acquiring bank. Here’s how this process works: 1. High-risk processors will be able to guide you on ways to reduce your chargebacks and keep your fees low. A high-risk merchant account enables you to sell in riskier markets. The business or the owner has a bad financial history. Merchant account Visa, MasterCard, American Express for low-risk businesses is a. 9% plus 30 cents per transaction. Processors may charge different fees, require different reserves, may vary the terms and conditions, or have different application processes depending on the risk category. The terms of the contract may vary from provider to provider, but at the core of the agreement, they are covering their bases. There are certain fees business owners need to pay for merchant account services. It also includes enterprises where client payment details have an increased risk of exposure. If a merchant has a high. High-risk businesses are charged greater processing fees than low-risk enterprises to determine the interchange cost they will pay. A team of high-risk analysts or an individual analyze your business to find out any type of risk. S. Keep reading to learn more about high-risk merchant accounts, how you may have become high-risk, and how to become low-risk by getting off the MATCH List. The merchant account provider will likely approve your application if your business history and transaction type make you a low-risk option. Affordable high-risk rates starting at a blended 2. With a low-risk merchant account, business owners not only get instant approval but also pay substantially less for merchant account services. CorePay. If the average ticket is less than $500. You are incorporated in a low risk state. e. 40 per transaction, plus a required 10% reserve (which is standard for most high-risk merchants). This can increase the difficulty of. Maximize approval ratios based on your target customer base. PaymentCloud is a merchant services provider. Our team will go over your documents, and you can start accepting different payments. Additionally, a business with a heightened likelihood of fraud would be marked as high risk. Types of Merchant Accounts. High risk rates as low as blended 2. The best merchant account providers help businesses through every step of the process. Again, it all comes back to that one word: risk. Nov 19, 2023Learn more about what constitutes a low-risk merchant A business that accepts credit cards for goods or services. When it comes to credit card payment processing, you might have difficulty getting approved for a high-risk merchant account depending on what vertical you fall in — but it can also be due to a history of fraud, a low credit score, or a high ratio of chargebacks. Excessive chargebacks are a prime reason why merchants are denied payment processing services. No advantage or low cost is worth it if a provider does not offer adequate customer service. 9% + 30¢ online. In contrast, high-risk merchant accounts require more effort to set up and incur higher fees than their low-risk counterparts. YOUR HIGH-RISK MERCHANT PROVIDER. If the business accepts only one type of currency. Where such a high-risk account is involved, banks tend to be hostile, and such industries are almost completely barred from opening accounts. Zero or low chargeback ratio. Industry is considered low risk e. Getting approved for a high risk merchant account. Once we have placed your business with a suitable high-risk banking partner, we will work with you to. With its expertise in high-risk merchant accounts, tailored payment processing options, competitive pricing, and excellent customer support, HMS is well-equipped to help CBD merchants efficiently and effectively process credit card payments. Monthly fees: These fees are typically meant to maintain your merchant account. A low-risk merchant account, among other things, usually has these characteristics: They accept only one type of currency. Low Risk. Stripe: Best for owners of multiple businesses and brands. Reason being, merchants in our payment processing world come under low-risk, medium-risk, and high-risk categories. To determine if your offshore merchant account is high or low risk, consider factors such as your industry classification, chargeback rates, compliance history, and financial stability. 05%-0. It is the acquirer’s responsibility to monitor a merchant’s compliance and ensure thatIn contrast, low-risk businesses tend to have lower credit risk and fraud risk, which makes it easier to get financing. Our team of expert advisors is on call 24/7 to help you get set. Low-risk merchant account. During the merchant underwriting process, the payment provider will assign a risk level to the merchant account application. In general, you are likely to receive approval for a traditional merchant account if your industry, products or services, sales methods, location, and customers present little risk to the acquirer or processor. $25 monthly payment gateway fee. High-risk vs. Square. Some of these include: 541990 - All Other Professional, Scientific, and Technical Services. They range from $10 to $50 for most companies. Select A High Risk Merchant Account If an account has been opened under false pretenses or the business model. your business’s features. Treati. 95%. These businesses often operate in industries that, for various reasons, carry a higher level of risk. Host Merchant Services: Best for large high-risk businesses. Get a free card swiper from Square at no cost when you create a free account. If you end up with one of the 99%+ “Low Risk” Merchant Account Providers, they will handle your account the same way PayPal or Stripe would — approve the accounts quickly and close it quickly. The idea that a business is a low risk isn’t always about the levels of liabilities that the company poses for the payment processor. This is very long compared to the typical month-to-month offering for high-risk merchant accounts, so keep that in mind before choosing them. Usually offers tiered pricing to bad credit merchants. 5 Best POS Systems For Gyms To Get More Members In 2023 - August 5, 2022. Higher fees. Why Do I Need A High Risk Merchant Account If you operate a business in a high-risk industry, obtaining a high-risk merchant account is an essential step in being able to accept credit card. While the high-risk version is a bit expensive, it offers the merchant many. Leaders Merchant Services: Best for Established Businesses 4. On the other hand, low risk merchant accounts. Cybersecurity is the practice of protecting computer systems, business accounts, networks, and sensitive information from unauthorized access, theft, damage,. Our process is simple so you can focus on your business. Fees are the main tangible difference between a high and low risk merchant account. Advantages and Limitations of Stripe as a Merchant Account Provider. Even though low-risk merchants also pay a chargeback charge (an expense you pay when a client disputes the charge directly using the credit card they use) However, high-risk merchants usually have higher charges for. In our review of merchant services, PaymentCloud earned an overall score of 3. Our objective is to give customers the satisfaction and be a reliable provider. Some businesses have to pay high fees rather than others. $25 monthly payment gateway fee. It also has a strong. Your customer pays for your goods or services with a credit card using your POS equipment, a virtual terminal, or a mobile app. What is a High-Risk Merchant Account? A high-risk merchant account is one that works with businesses with a higher risk of chargebacks, fraud, or failure. We provide merchant account services for both low and high-risk businesses. 3) Moto merchant accounts. High-Risk Merchant Account vs Low-Risk Merchant Account. Low-risk accounts usually benefit from lower prices because they demand less work from payment processors. various factors collectively decide the risk category for a particular business. A high-risk merchant account with instant approval can be the lifeline your business needs. PayPal: Best for Ecommerce. Tiered pricing usually offered to bad credit merchants. High-risk merchant account fees Setup Fees. Low-Risk Merchants Explained. Fill out the quick & easy form or pick up the phone and call +1 (800) 530-2444. For over 5 years, Corepay has specialized in providing merchant account services to a wide range of high-risk industries. Banks categorize businesses into three main groups: high-risk merchants, medium-risk merchants and low-risk merchants. Payment Depot: Best for High Transaction Volume. io as our favorite online credit card processor for cannabis and CBD vendors due to its willingness to work with these merchants when many providers will not. Some reasons why your business may be deemed as a high-risk merchant account are as follows: high ratio chargebacks, accepting. . There are several criteria to determine the risk level of a business: high transaction volume, international payment (geographic location. Payment processors that offer high-risk merchant accounts understand the unique challenges faced by high-risk merchants, such as an increased likelihood of chargebacks or fraud. Step 1 — the first step of the merchant account process involves a transaction made by the customer. Interchange + 0. There is a solution for every legal business. 3. While high risk merchants are businesses dealing with larger transactions of over $20,000, low-risk merchants are small business owners earning less than $20,000. Banks categorize businesses into three main groups: high-risk merchants, medium-risk merchants and low-risk merchants. The reason is simple: Everyone in the payment chain (except for the customer) loses money in a chargeback. In the world of merchants, the ability to process. In contrast to the application process for a low-risk merchant account, getting a high-risk merchant account can be more challenging because banking institutions prefer to offer low-risk customer. merchant accounts), you’ll typically need to process $5K-$10K in monthly transactions to justify the cost. An International Merchant Account is a specialized financial service enabling businesses to accept and process customer payments across different countries and currencies. A low-risk merchant's average transaction value costs not more than $500 per transaction, whereas a high-risk merchant transaction costs more than that, and the transaction volume is also much. And just as the name suggests, a low-risk merchant is a merchant business that carries a significantly lesser amount of risk. This includes information on individual transactions and batch totals with comprehensive reporting tools. Prior applying for a merchant account, you must know if your business comes under low-risk. 10 per transaction (low-risk accounts) Processing rates vary by the acquiring bank/back-end processor (high-risk accounts). Understand more about being in high risk verticals by researching payment review websites with key information. Low-, high-risk, & international merchant accounts; eCheck processing; Support for POS, online, & mobile transactions; Fraud protection services;. Companies like Shark Processing help merchants expand their reach globally and tap into new markets, offering convenient payment options to customers worldwide. Not only that, it also has acquired bank partnerships, skills and a good reputation to help your high risk business acquire a merchant account. With the use of an Authorize. Laundering payments through a low-risk merchant account allows maximum proceeds while avoiding regulatory limitations. It often means tougher-than-usual terms and higher fees than low-risk accounts. Best one-stop shop: First Card Payments. Other examples of high-risk businesses include bail bonds, electronics, and credit repair companies. What are high-risk merchant account and low-risk merchant account? Before jumping into finding the ideal merchant service provider, you need to answer some questions beforehand. SMB Global provides a merchant account to high-risk businesses. Although obtaining such an account can be difficult and has disadvantages, it can provide a lifeline for such businesses. High-risk businesses are those that are considered to be a higher risk for chargebacks or fraud. Low-risk accounts usually benefit from lower prices because they demand less work from payment processors. Credit card transaction that is less than average of $500; Minimized Returns; Less than $20000 processed monthly; Zero to low chargeback ratio (These are, for instance, low-risk shoes and clothes, baby. Application: The business applies for a high-risk merchant account with a specialized payment processor that specializes in high-risk businesses. Here is the 4-step process of a debit card or credit card transaction and how a merchant account works:. The more chargebacks that come with a business, the higher the risk. The company specifically markets. Here at Shark Processing, our sole focus is securing low-cost,. Many acquiring banks in the US consider merchants looking for offshore merchant accounts as high-risk clients. Based on our evaluation, the best high-risk merchant account providers are: Best overall (and most versatile): PaymentCloud. The company’s EPD Gateway is its primary product, with merchant accounts provided through partnerships with numerous major US and international processors and banks. High-risk merchant account providers that accept travel businesses generally do not disclose their prices, relying instead on a. A high-risk merchant account is a type of business account offered by a payment processor or a bank, designed specifically for businesses deemed “high-risk. 1. You’re in an industry that is considered “High Risk”; you are in eCommerce, you run high dollar transactions, your transactions happen in the future, you have poor credit or maybe someone closed your merchant account in the past - now you need a high risk merchant account. A high-risk merchant account is for businesses that operate in high-ticket industries with increased risks of fraud and chargebacks. Since account providers consider high-volume merchant accounts to be at higher risk, you will pay more for your credit card processing. Low-Risk Merchant Accounts. While low-risk retail and ecommerce merchants can pay as low as $10 per month, high-risk merchants should expect to pay an average of $25–$45 monthly. 10 processing fee per transaction (exclusive of any fees charged by your merchant account)The most obvious downside to needing high-risk merchant accounts is the higher rates. They will provide the best rates for services, plus they will offer more lenient terms for services. But they're more. Merchant accounts for high-risk businesses are more dangerous for banking systems to operate with. Our merchant accounts are perfect for you to accept debit and credit cards payments for your low risk businesses. General characteristics of a low risk merchant account. 3. On the other hand, high-risk merchant accounts deal with high-risk items like cannabis, tobacco, firearms, airplane tickets, virtual currencies, and pharmaceuticals. Review merchant submissions of SAQs, network scanreports , and Reports on Compliance (ROC), if applicable, to determine that a merchant is in compliance with the PCI DSS. options above. Opening a merchant services account can require a number of documents to help the bank and its underwriters determine both the business and the. A low-risk account may see a processing rate of 0. National Processing. In simple terms, a high-risk merchant account is a payment processing account for businesses considered as ‘high-risk’ by credit card processors or banks. In the simplest of words, a high risk merchant account is an account that is used for payment processing by businesses that are considered to be high risk by banks. Dharma Merchant Services: Best for merchants who process more than $10,000/month. There can also be both the categories which support High-risk Business and Low risk Business. 3) Industry is considered low-risk, such as retail. A high risk merchant account will have higher fees and stricter contract terms. Prior applying for a merchant account, you must know if your business comes under low-risk. One of the biggest differences between low risk vs. While the vaping/e-cigarette industry is highly profitable, banks and credit card processors also consider it high-risk. They will provide the best rates for services, plus they will offer more lenient terms for services. The E-COMMERCE BROKER company helps to register a merchant account for Visa, MasterCard, American Express, and for a number of other. For a high-risk merchant account instant approval, it is preferable to go for a service provider like PayCly which specializes in high-risk companies. high risk merchant accounts is the amount of. However, the company specializes in serving the high-risk community, accepting a very wide variety of industries that ordinarily struggle to get approved for credit card processing. Square. The third main difference is that a high risk merchant account has an average credit card transaction of over $500 while a low risk account has an average credit card transaction of less than $500. These include reduced fees and less of a need. As stated above, there are three types of merchant accounts. As traditional merchant accounts support low- and mid-risk business operations, businesses operating in high-risk industries will. To qualify for same-day merchant account approval, ensure all the needed documents are in order. 78 out of 5. Compared to a regular account, a high-risk merchant account will have the following. There are additional considerations for the payment process in cases of high-risk accounts. However, for business owners looking for the best high-risk merchant accounts with bad credit, you might want to consider Electronic Cash Systems, PaymentCloud, Payment Depot, Durango Merchant Services, Soar Payments,. Our team of expert advisors is on call 24/7 to help you get set up with. Industry is considered low risk e. Usually offers tiered pricing to bad credit merchants. Flagship Merchant Services: Best. A competitive payment processing fee for a standard retail small-business account might be 2. Mony Zenou, Founder, President, and CEO of Dejavoo Systems joins the show to discuss the power of cloud based POS offerings, and more. Ultimately, this results in downtime while they resolve the issue. If you operate a high risk business, you will need to reach out to a high risk merchant provider, while low risk businesses can typically pay lower rates. With over a 95. Ultimately, this results in downtime while they resolve the issue. To qualify for low risk merchant accounts, your business must: Process less than $20,000 per month, Have an average ticket size of less than $50, and. When shopping for a check by phone merchant account, it is important that you understand how the electronic checks are processed. A merchant account may be classified as low-risk due to one or more of the following factors: If the average monthly transaction volume is less than $20,000. Why Some Businesses Need a High-Risk Merchant Account to Use an Authorize. Payment Gateway & Merchant Accounts. In most cases, a high-risk merchant account can be approved within 3 to 10 business days of a complete application packet being submitted to underwriting. Easy Pay Direct: - Primary product is proprietary EPD gateway. Reason being, merchants in our payment processing world come under low-risk, medium-risk, and high-risk categories. However, that processing fee can inflate to well over 1. While many merchant service providers openly advertise their standard, low-risk merchant rates, high-risk account fees are usually less transparent because there are more variables to take into consideration. A high-risk merchant account has never been easier to attain thanks to Payment Savvy. A high-risk merchant account is a business that a credit card processor is more likely to lose money on. in-person; 2. High-risk merchant accounts typically have higher processing fees to compensate for the risk the payment processor takes on while working with the account. There are other plenty of merchant account providers that comprehends the situations and offer services precisely for high risk industries & high risk businesses. Are You a High Risk or Low Risk Account Merchant? Before you can begin researching merchant services providers, you need to ask yourself a few questions about the. Your payment service providers will impose a fee when you use your merchant account, accept credit card payments, or agree to pay from your debit cards. Application: The business applies for a high-risk merchant account with a specialized payment processor that specializes in high-risk businesses. Low Risk High Risk; Chargeback rate: Under 1%: Over 1%: Average ticket size: Under $500: Over $500: Sales volume: Under $20,000/mo:.