How to Get High Risk Merchant Services for Credit Card Processing

Nowadays, businesses need to offer high risk merchant services to be relevant in today’s market trend. This type of merchant services provide paying convenience for a business’s customers. However, before a company can even offer high-risk merchant services, it needs to settle certain requirements first.

You need first to ensure that you will get approved for a high risk merchant account. This is so you can set up high-risk credit card processing, as well as accepting mobile payments.

Businesses, particularly small ones, have to make keen judgments regarding extending their credits. During this scenario, one big question that they need to answer is this: are they only going to extend credit for those who will pay in cash or checks?

Though this will make their payment process a lot easier, it will, however, limit their customer base to an extent.

If your business does decide to offer extended credit, it will be a bit complex. However, the upside is that it will maximize their overall reach in both their customer base and on the marketplace. With that reason, it will eventually lead towards mass offerings of high-risk card processing services.

With that in mind, the question will now turn towards, what is going to be the requirement?

Before we answer that question, let’s first consider those who don’t have any idea about what we are talking about. Here’s a short introduction of high-risk merchant services and high-risk merchant account:

High Risk Merchant Service

If a business offers high-risk merchant services, it just means that it can accept payments via credit card from high-risk businesses. These types of merchant services are provided by either a bank or by an exclusive high-risk merchant service provider. It can also be provided by independent payment processing-offered sales organizations.

High Risk Merchant Account

Again, before a business can even offer high-risk merchant services, it needs to first apply for a high-risk merchant account. It is a type of bank account that will grant businesses to offer payments from high-risk businesses through credit/debit cards.

Before a high-risk merchant account is set up, it will first involve an agreement between the bank, the business, and the payment processor for credit or debit card transaction settlement.

Setting up a high-risk merchant account is not the same for all business. For one, start-ups, small or home-based businesses have different requirements, which are the following:

  • Apply for merchant account status with the current bank you are already doing business.
  • Your business will be evaluated for credit card extension, which will be conducted by the bank.  
  • Your business must be in business for a minimum of two years.

These requirements are not as tedious as it seems, however, there will be times when a bank will still deny a business’s merchant account application. The main reason for this is bad credit. Since a bank sees a business having a high merchant account as an extension of credit, they must secure the following:

  • A Good Credit Report
  • A High Credit Score
  • An Excellent Bank Presentation
  • Obtaining Merchant Status (for startups & home-based businesses)

Independent Credit Card Processing Companies

If so happens that your bank didn’t grant you a merchant account, you can still try the following alternative, which is approaching an independent credit card processing firm. These organizations also consider high-risk and perfect credit-rating businesses.

However, unlike banks, these independent companies may charge a higher fee. Keep in mind that this option is recommended for high-risk firms that also aspire to offer credit/debit card as a payment method. This means the bank is still the better choice.

So there you have it. These are the main requirements that you will need to set up an active high-risk merchant account for card processing. Keep in mind that this is only a brief background. For more information, you can always go to your bank and ask for more details about acquiring a merchant account.

What you need to do now is to gather more facts as you can before making a decision. Remember, most consumers prefer a wide assortment of payment options and will keep coming back to the business that offers them this service.

Share Us


Recent Articles

Discover the Best High-Risk Merchant Solution

Applying is easy. Find out why we have a 95% approval rate. 

The young man lies in a hammock

The Top 5 Reasons a Travel-Related Business Needs a High-Risk Merchant Account

A high-risk merchant account can be a lifeline for travel-related businesses facing the unique challenges of the industry. From handling chargebacks and international transactions to managing seasonal fluctuations and complying with regulations, the benefits of having a high-risk merchant account are clear. By choosing the right payment processing solution, you can safeguard your travel business and provide your customers with a seamless and secure booking experience.
Card with contactless technology,Payment transaction with card.

Navigating High-Risk Business Industries: Examples and Challenges

A high-risk payment gateway is a crucial service for businesses in high-risk industries. It helps them manage and mitigate the unique challenges they face, such as fraud, legal compliance, and access to payment processing services. These specialized gateways provide customized solutions to enable high-risk businesses to process payments securely and efficiently.
Young bearded man with a mohawk sitting at barbershop and smoking a cigarette

Why an online smoke shop is considered a high-risk business

Payment Processing Challenges: Payment processors and financial institutions categorize certain industries as high-risk based on many factors. As a result, online smoke shops may face difficulties in finding suitable payment processing partners. When they do find processors willing to work with them, they often come with higher fees and more stringent requirements. To mitigate these challenges and operate a successful online smoke shop, business owners need to implement a comprehensive strategy that includes robust age verification processes, effective fraud prevention measures, clear terms and conditions for customers, and a solid understanding of the legal and regulatory landscape in their target markets. Building strong relationships with payment processors experienced in handling high-risk businesses can also help navigate the payment processing challenges associated with this industry.

What does it mean to be on the Match List (TMF)

Getting on the MATCH list can have serious consequences for a merchant's ability to obtain payment processing services. Once a merchant is listed, it becomes difficult to secure new processing agreements with other providers, as they often perform background checks before onboarding new clients. Being on the MATCH list can significantly impact a business's financial operations and reputation.
start up business team in the office

What does a business need to apply for a high risk merchant account?

A high-risk merchant account is typically required for businesses operating in industries that are considered high-risk due to factors such as a higher likelihood of chargebacks, potential legal or regulatory issues, or higher rates of fraud. If you are a business owner looking to apply for a high-risk merchant account, here are some key elements you should consider
Young male florist working in flower shop

What does a small business need to know about interchange fees?

Interchange fees are an essential aspect of the payment ecosystem that small businesses need to understand. When a customer makes a purchase using a credit or debit card, these fees ensure the smooth operation of the payment network and compensate the issuing bank for the services they provide. While they may seem like an added cost for merchants, they play a vital role in enabling businesses to accept electronic payments, which are convenient for customers and help drive sales. For small businesses, it's crucial to be aware of the cost structure associated with interchange fees. By understanding the factors that influence these fees, such as card type, transaction value, and payment network, businesses can better manage their pricing strategies and account for these costs in their overall profitability calculations. Negotiation and cost comparison are key aspects when choosing a payment processor or acquiring bank. Small businesses should seek competitive pricing by exploring different options and evaluating the complete fee structure offered by various service providers. While negotiating directly with payment networks may not be feasible for small businesses, working with the right partners can help secure more favorable terms. Moreover, it's essential for small businesses to optimize their payment processing systems to reduce interchange fees. Embracing technologies like EMV chip cards and contactless payments can lead to lower fees and enhanced transaction security. By staying informed about industry changes, businesses can adapt their payment strategies accordingly and take advantage of any potential cost-saving opportunities. Ultimately, while interchange fees are an important consideration, it's equally crucial for small businesses to provide customers with seamless payment experiences. By striking the right balance between managing costs and offering convenient payment options, businesses can foster customer loyalty and drive growth in an increasingly digital economy

Our Application Process is Quick and Easy

Find out why we have a 95% approval rate.

Your information is safe, We take your privacy seriously.