If you run an online business and getting higher chargebacks and want to process credit card transactions, you need an efficient payment processor. A High-Risk Merchant Account Provider is a payment processing account that is considered to be of high-risk to the banks. As high-risk businesses are more susceptible to chargebacks, they come with the need for paying higher fees for merchant services. If a business comes with a high potential of getting chargebacks, or the credit card history shows many chargebacks and refunds, the bank may put a rolling reserve on your account. It is the same amount of money that will cover the chargebacks and frauds.

Before you apply for a merchant account, it is better that you must know whether you are a high-risk merchant Account or low-risk merchant. Service providers have set their rules for categorizing business in terms of their potential risk, but there are certain characteristics for both groups of merchants. Every processor has its own set of standards, but there are some characteristics common for all the players on the market.
Low chargeback facility for businesses
The more chargebacks generally mean higher the risk. Hence, the main factors that matter are industry reputation and processing history. One of the examples of high-risk business is the travel industry. As there are many causes for the cancellation. This usually ends up with the number of refunds and customers who file chargebacks. Some of the other examples include gambling, forex trading and adult-themed websites. There are many other industries or business such as Adult Entertainment, Tech Support, Forex Trading, and others that are prone to high chargebacks. So, if you run a business in any of the industries mentioned above then you are required to have a merchant account to accept credit card payments on your website.
When it comes to the fees that service provider charge from the merchants it is a bit in case of High-Risk Merchant Account Provider business as compared to low-risk business. There may be inevitable costs that you may have to face, so you need to be prepared for processing charges and account fees.

Read our another blog post : Tech Support Merchant Accounts