High-Risk Merchant Account Solutions

A business may be considered high-risk due to various factors, including industry type (such as CBD, travel, ecommerce), high chargeback rates, subscription-based billing models, international transactions, high average transaction amounts, or lack of processing history. These factors increase the financial risk for payment processors and banks.

Traditional merchant accounts get instant approval but high-risk merchant accounts somtimes need 24-48 hours for approval. The streamlined process we have in place will get you up and running as quickly as possible but the additional underwriting required for high risk accounts means we may need a bit more time to review your application.

The required documentation consists of business formation documents (articles of incorporation), business licenses, personal ID of the business owner, 3-6 months of bank statements, processing statements if you've accepted payments before, and your website or product details. Our application process and expert sales reps will guide you through submitting each required document.

High-risk merchant accounts generally have higher fees than regular merchant accounts due to the increased financial risk. These may include higher processing rates, monthly fees, and chargeback fees. However, we work to offer competitive rates for high-risk businesses, and the actual fees will depend on your specific business model, processing volume, and risk level.

A rolling reserve is a risk management tool where a percentage of your transactions (typically 5-10%) is held by the processor for a certain period (usually 6 months) to cover potential chargebacks. The need for a reserve on your account depends on your business risk level, your processing history and other factors. Not all high-risk accounts require reserves, and terms can often be negotiated.

Yes, it's possible to get approved for a high-risk merchant account even with poor personal or business credit. While credit is one factor considered during the underwriting process, we evaluate applications holistically, considering your business model, time in business, processing history, and other factors. We regularly approve merchants who have bad credit.

To reduce chargebacks, implement clear billing descriptors so customers recognize charges on their statements, provide excellent customer service (even on weekends), use fraud prevention tools, clearly and plainly communicate shipping times and refund policies, require signature confirmation for high-value items, and consider using chargeback prevention alerts. Our team can offer additional guidance specific to your business.