Either you’re high-risk, or you’re not – there is no middle ground.
Beyond that, it gets complicated as every processor has their own unique guidelines for determining whether you’re in the high-risk category.
Here are the most common types of high-risk businesses: If you’ve been reading this so far and you’ve determined that your business is in the high-risk category, it’s time to face this harsh reality: merchant accounts for high-risk businesses inevitably cost more than those for non-high-risk ones. You’ll pay more in both account fees and processing charges, and you’ll probably be stuck in longer contracts as well.
In this article, we’ll discuss the factors that lead to a business being labeled high-risk and how this determination will affect your ability to get a merchant account.
We’ll also provide some recommendations for high-quality providers that specialize in servicing the high-risk sector.
If you’re having trouble getting approved, take a look at our top picks for high-risk merchant accounts.
The first thing to understand about high-risk businesses is that your processor will determine whether you fall into one of their high-risk categories when you apply for a merchant account.
All processors will carefully judge your business to determine whether you fall into the “high-risk” category.