Who Wants a High Risk Service provider Account?

online gaming merchant account providers accounts are required to ensure that a business to simply accept credit card payments. As a service provider, there are two places you’ll be able to get hold of a merchant account; a bank, or a third party provider. For on-line retailers the most well-liked, and in most cases price efficient, supply is from a third party service provider account provider.

A high risk merchant account is required by businesses that, when compared to a ‘traditional’ items/services enterprise, are at a higher risk of:


Fraudulent Transactions

High volume of sales

High rate of refunds

High rate of charge-backs

Different reasons a service provider could also be categorized as a high risk are:

Retailers Location – Some merchant account providers is not going to settle for merchants from certain countries.

The Product/Service the merchant sells is illegitimate in some jurisdictions.

Merchant Credit History – Some providers won’t settle for merchants with poor or no credit history.

As a result of high risk classification, most banks will not present a service provider account to these in a high risk trade (resembling adult leisure, replica items, pharmacy and so forth). As such some third party providers provide their services to both basic merchants and high risk merchants.

Service provider account suppliers which have been developed to service high risk retailers will usually present a higher level of fraud protection, in order to decrease the cost their merchants incur. However, to be able to cover the higher degree of risk, rates for a high risk merchant account will at all times be higher than their decrease risk counter-parts.

When on the lookout for a high risk merchant account, there are a number of factors that you need to take into account. Rates shall be one of the vital necessary factors, and this contains fees for refunds and cost-backs, together with transaction charges, the discount rate and ongoing fees. Then you will need to think about fraud protection, customer support and reporting available to you as a merchant.