High Risk Business and High Risk Payment Processing

Different merchant account providers use different standards to label a business as high risk. However, some common examples of high risk businesses include adult entertainment, online gambling sites, e-cigarette and vape shops.


Higher rates of chargeback and payment processing fraud, or the fact that you’re in a new, burgeoning market are among the main reasons why your business may be tabbed as high risk. The high risk nature of your business will make it challenging for you, as a merchant, to get approved for a high risk merchant account for payment processing.


Getting Approved for High Risk Credit Card Processing

Traditional banks and other financial institutions aren’t willing to work with merchants in the high risk industries. The reputation of the industry itself and the sustainability of the businesses within it play a major role in whether a merchant account provider would like to work with the business or not.


Unlike traditional banks and most payment processors, alternative online lenders are ready to work with high risk businesses and can provide the best for their business wants and needs. So, if your business has a relatively high chargeback rate, and if consumers are often canceling transactions or requesting refunds, thus making your company be exposed to possible fraud, turn to a reputable payment processor that specializes in the high risk industry. With a respectable high risk processor, you can easily get approved for high risk credit card processing and take your business to the next level.


Remember that if you’re a starter and if you have a low credit score, you’ll appear in the high risk category. Moreover, if you’re competing in a new or unproven industry, you’re going to be regarded as high risk as well. Finally, selling to customers in a different country and not where you’re based in will also categorize you as high risk.


Here are a number of businesses labeled as high risk:

  • Adult Merchant Accounts
  • Airlines and Jet Charters
  • Bad Credit
  • Bail Bonds
  • Cigars and Pipes
  • Collection Agency
  • Credit Repair
  • Debt Consolidation
  • Diet Programs
  • Ecig Merchant Accounts
  • Educational Seminars
  • Electronics
  • Furniture
  • Gaming
  • High Ticket
  • High Volume
  • MLM and Bizops
  • Moving & Transportation
  • Nutraceutical
  • Online Firearm Sales
  • Penny Auctions
  • Prepaid Calling Cards
  • Software and E-Books
  • Sports Betting Advice
  • Tech Support
  • Ticket Brokers
  • TMF Merchants
  • Travel and Timeshares
  • VOIP and Telecom
  • Water Purifiers


Being tabbed as high risk doesn’t mean there’s no light at the end of the tunnel. Focus on building up a positive history to be reclassified as low risk. A positive processing history would include 6 months to a year of a low amount of chargebacks and refunds. With a reputable high risk payment processor, you can overcome this seemingly uphill battle with ease.


Author Bio: Electronic payments expert, Blair Thomas, co-founded eMerchantBroker in 2010. His passions include writing/producing music, and travel. eMerchantBroker is America’s No.1 high risk credit card processing company, serving both traditional and high-risk merchants.

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