Frequently Asked Questions About High-Risk Payment Processing

High risk products are goods or services sold by merchants operating within industries classified as high risk. Common examples of high risk industries include nutraceuticals, CBD products, magazine subscription services, debt consolidation, multi-level marketing, travel, and more. Additionally, products and services with high price points or those offered through subscription models or payment plans may also be categorized as high risk.

A high risk merchant account enables businesses labeled as high risk to process credit card and debit card transactions. These accounts are specifically designed for merchants with a higher likelihood of chargebacks or whose business practices pose increased risks of financial losses to banks and merchant account providers.

Businesses are typically classified as high risk due to their industry or operational practices. Even businesses outside traditional high risk industries may be categorized as high risk if they offer free trials, subscription billing, average transaction amounts exceeding $50, monthly sales volumes over $20,000, or have high chargeback ratios and poor credit histories. Obtaining a high risk merchant account is generally the best solution for these businesses.

High risk businesses are those unable to secure standard merchant accounts from conventional banks and payment processors. Factors such as involvement in high risk industries, offering free trials or subscription-based services, or experiencing high chargeback rates can classify a business as high risk. These businesses often face challenges in securing banking services, including loans, merchant processing services, and insurance.

A high risk merchant is defined as a business meeting one or more of these criteria: Poor personal or business credit history of the owner or guarantor, High chargeback ratios, History of previously closed merchant accounts by providers, Selling products or services within high risk industries, Utilizing payment structures that pose financial risks to banks and providers, Processing transactions with large dollar amounts or maintaining high monthly transaction volumes.

High risk merchant accounts are specialized payment processing accounts provided to merchants identified as high risk by traditional banking institutions and payment processors. These accounts allow businesses operating in high-risk industries or with higher-than-average chargeback rates to accept credit card payments. While they typically come with higher fees and more stringent terms, they provide essential payment processing capabilities for businesses that would otherwise be unable to accept card payments.

To apply for a high risk merchant account with Adaptiv Payments, simply complete our online application form or contact our sales team directly. We'll need some basic information about your business, including processing history, monthly volume, and the type of products or services you offer. Our team will review your application and guide you through the approval process, helping you find the right payment solution for your specific business needs.

High risk merchant accounts typically include several types of fees: set-up fees, monthly or annual maintenance fees, per-transaction fees (usually a percentage plus a fixed amount), payment gateway fees, and possibly chargeback fees. At Adaptiv Payments, we strive to offer competitive and transparent pricing for high-risk merchants, with fee structures tailored to your specific business needs and processing volume.