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What is considered a high-risk merchant account?

There are three types of merchant accounts:

  • Low-risk;

  • Medium risk;

  • High-risk.



A company is considered high-risk if several criteria are met:

  • A startup business

  • Risky industry (with high chargeback possibilities). When the chargeback ratio hits 1%, the merchant may face higher processing fees

  • The company is in financial difficulties

  • Companies with a bad credit history

  • The company sells goods and services to high-risk countries (Iran, The Bahamas, Cambodia, Barbados, Guinea-Bissau, Iraq, Mali, Swaziland, Mozambique, Myanmar, Jamaica…)

  • Questionable goods and services

  • The company’s owner provided inaccurate information about the activities of the business and its legal address

  • Monetary transactions do not correspond to the declared activity


Check how Paywise can help to grow your conversions and accept more payments globally.

Frequently, foreign banks refer to the following areas as high-risk products and services:

  • Casino or internet gambling;

  • Sale of medicines;

  • Dating services;

  • Bitcoin or forex trading;

  • Internet auctions;

  • Sale of firearms;

  • Sale of jewelry;

  • Lending;

  • Telemarketing;

  • Adult content;

  • Investments, remittances.

Financial service providers who specialize in high-risk businesses tend to charge higher fees than low- to medium-risk clients.

Contact Paywise today for more information!


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