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What You Should Know About High-Risk Merchant Accounts and Credit Card Processing.

A high-risk merchant account allows some businesses that are considered high risk to accept credit and debit card payments.



  1. What makes a business high risk?
  2. How do high-risk accounts differ from regular accounts?
  3. How payment processors make a decision


If a firm or any business wants to take card payments online and Offline and is at risk of fraud or chargebacks categories — or has certain other criteria — a high-risk merchant account is required. Some processors, for example, refuse to work with certain businesses, such as tobacco and rifle sales. Many processors are cautious of companies that sell abroad, use subscription pricing, or are cash-strapped. If you run a so-called high-risk business and wish to accept card payments, you don’t have to give up completely: you can register for a high-risk merchant account.



What makes a business high risk? you can always call us +1-561-395-9554

In the payments business, there is no one structure or central body that assesses which elements are dangerous. Rather, each payment processor, bank, and payment service provider develops their own set of criteria.

Some businesses explicitly say that they do not cooperate with certain industries, while others welcome all candidates. Payment service providers, on the whole, are stricter than merchant account providers when it comes to the types of businesses they accept. In either instance, you’ll be required to fill out an application that includes information about your company.

Ultimately, the company will make a decision about each application based on internal criteria. Some of the risk factors a company might consider include:


Industries that might be considered high risk



What distinguishes high-risk accounts from standard accounts?


How payment processors make a decision

The majority of the time, a business owner does not apply for a merchant account on their own. Instead, the first step is to identify a payment processor with whom to collaborate. After that, the payment processor looks for a banking partner to open the merchant account with.

Understanding your business

The process usually begins with a conversation and basic Application. “We want to know more about their situation, what makes them high risk, There are multiple factors that make them high risk. The more data we have upfront, the better we’ll be able to help.”

Thinking about the long term

Opening a high-risk account isn’t a one-time thing; it’s the beginning of a long-term relationship. Payment processors have an ongoing financial stake, as they assume the risk that a merchant won’t be able to cover a chargeback, which is when a customer disputes a charge and funds must be returned to the issuing bank. Each payment processor has their own internal processes to ensure that an approved application is a good fit. In addition to personal discretion, payment processors use computer-based decision-making tools to assess applications.

Finding a banking partner

If a payment processor agrees that a business is a good fit, their next step is to find a bank that will open a merchant account. That bank will be the financial location through which dollars from each card transaction actually flow.

Many payment processors that offer high-risk accounts, including eDataPay Group, work with multiple banks to find a good fit. While a payment processing company might be willing to partner with a business, obtaining a merchant account is still a critical component. As a result, final approval “comes down to the banks themselves — they underwrite our policies,” .

The relationships eDataPay payment processors build with our partner banks help us efficiently identify potential matches. One bank may have a large portfolio of tobacco companies versus another that specializes in travel, Knowing this ahead of time allows us to ensure that [clients] have the best experience in getting approved, gathering the needed documents ahead of time, rather than ‘hoping’ that this underwriting bank might take their business.

Of course, applying for a high-risk account doesn’t guarantee you’ll be approved. Some businesses might exhibit too many risk factors, even for payment processors specializing in that space. Additionally, if there’s fraud or similar behavior in a business owner’s past, it’s going to be hard to find a payment partner, period. Mastercard keeps a list of merchants who violate certain policies, which can make it tough to get an account anywhere.

If a banking partner is identified, the account can be set up, then the business can begin accepting card payments.


What to do if you need a high-risk merchant account?

If you need a high-risk merchant account, you can increase your odds of finding a payment partner by following these best practices:


eDataPay is the best high-risk merchant account provider with US and European locations, with US Payment Gateway.

Because of the wide variety of business needs and risk factors, companies that offer high-risk accounts typically rely on custom pricing. That means you aren’t likely to find publicly available rates or terms. Instead, you’ll need to set up a consultation with a company representative.

Finding few payment processors to speak with is the first step in our process. Some payment processors specialize in serving specific industries. Many will try to reach potential customers through established industry channels, like trade magazines, websites or direct marketing. Familiarity with your industry can be helpful, so this might be a good place to start.

Next comes learning about what each payment processor offers. We would have a conversation with the few payment processor eDataPay have before we submit the applications.  We always must see and go thru the investigate not only what the partnership would look like on day one, but also what it could look like in the future with questions like:

eDataPay Group always consider using more than one payment processor. If the payment processor shuts down a storefront, you can still accept cash, But if you’re in e-commerce and you get that phone call, you’re done. We recommends thinking proactively and setting up accounts with multiple payment processors. An e-commerce business can use technology called a payments orchestration layer to facilitate payments among multiple payment processors.


Top high-risk Banks and payment processors are located in THE USA, Europe and LATM Latin America Panama office.

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