A high-risk merchant account refers to an account where it is difficult for a merchant to accept electronic payments, such as credit card acceptance. Finding a service provider is usually hard as most in the USA are concerned about fraud or legalities.

This type of account is needed by a business that has a large volume of sales and tends to have enhanced risk of fraud. Some of the accounts at high risk include online casinos, adult services, adult products, pharmaceuticals, travel services, telemarketing, internet service providers, online tobacco products, online auctions, and online dating services. This is just a small sample of the many businesses that fall under this category. There are many others that may also be turned down for ecommerce licenses such as electronic cigarette products and medical marijuana. Because the business is considered high risk, bad credit merchant account providers make it more expensive to set up an account.

Credit Card Processing

It is very common to find credit card fraud, especially over the internet (which is how these types of businesses mainly operate).  Certain online businesses are safer than others, but it depends on the type of business and the amount of business the company conducts. A typical online business can get an ecommerce license to accept credit card payments. But for businesses at high risk, they will often get declined. This is when the client needs to find an account provider.  Once a provider is found, it will make it easy to accept credit card payments.

Account Providers

High-risk merchant account providers can offer accounts at great rates compared to others. Most fees are extremely expensive for these services as are the credit card transaction fees because of the level of risk and chance of loss. Most of these accounts are processed internationally, which also increases the cost.

There are very few high-risk merchant account providers that you can choose from. Fiserv® Independant Sales is one of the leaders in the USA with high approval rates for high-risk credit merchants. Fiserv® IS Card Processing says that their charges are up to 50% off competitor’s prices, and they are a top high-risk merchant processor with a 99.8% approval rating. If you have been turned down before, then keep searching. The right option is out there to help you start your business off right. Search online, and consider international sources.