Who Needs a High Risk Service provider Account?

Merchant accounts are required to ensure that a enterprise to just accept credit card payments. As a service provider, there are two places you’ll be able to receive a service provider account; a bank, or a third party provider. For online gaming merchant account costs retailers the preferred, and in most cases price effective, source is from a third party merchant account provider.

A high risk merchant account is required by businesses that, when compared to a ‘traditional’ goods/companies enterprise, are at a higher risk of:


Fraudulent Transactions

High volume of sales

High rate of refunds

High rate of charge-backs

Other reasons a merchant may be categorized as a high risk are:

Merchants Location – Some service provider account providers won’t accept retailers from certain countries.

The Product/Service the merchant sells is against the law in some jurisdictions.

Service provider Credit History – Some suppliers won’t accept merchants with poor or no credit history.

Because of the high risk classification, most banks won’t provide a service provider account to these in a high risk trade (comparable to adult entertainment, duplicate goods, pharmacy and so forth). As such some third party providers provide their services to each normal retailers and high risk merchants.

Service provider account suppliers which have been developed to service high risk retailers will typically provide a higher degree of fraud protection, in order to decrease the associated fee their merchants incur. Nevertheless, in order to cover the higher level of risk, rates for a high risk merchant account will at all times be higher than their decrease risk counter-parts.

When in search of a high risk merchant account, there are a number of factors that you should take into account. Rates might be probably the most important factors, and this contains fees for refunds and charge-backs, along with transaction fees, the discount rate and ongoing fees. Then you will have to think about fraud protection, customer support and reporting available to you as a merchant.