High-Risk Merchant Accounts: Technology Revolution Riding Success

by | Dec 21, 2022 | merchant account | 0 comments

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Merchants should reset their expectations from high-risk merchant accounts. Payment Service Providers (PSPs) have impacted online buying habits favoring brands and consumers. The security and convenience aspect offers several reasons to shop for your favorite products anytime and anywhere. The evolution of high-risk businesses shows the time is ripe to make it into the mainstream culture. Do you operate in a high-risk industry? Do you think there is an advantage over how things were a decade ago? What are the challenges, and what solutions do you suggest?

What are the burning issues?

The high-risk merchant account service providers haven’t been able to keep pace with PSPs. The industry is marred by a) accuracy and transparency issues, b) uniformity across sectors, and c) collective growth. Merchants expect to meet some of the standards of low-risk merchant accounts. They have two options: Domestic and International merchant accounts. The talk of an offshore high-risk merchant account sounds like a default option. It is how far things have gone without fixing the cracks in the last couple of years. The technology revolution has changed the industry landscape. It doesn’t put one service at a disadvantage over another. It highlights the territory-based trade and tax benefits without exploiting the system.

High-risk merchants in e-commerce should brace themselves up for a tough time ahead. They expect more hurdles than other high-risk businesses. The return ratio, chargebacks, and subscription model throw caution at banks. Small businesses should look for an offshore high-risk merchant account for e-commerce. Consider domestic players too. The technology gap is shrinking as we talk.

What if you have a new business or picking up the reins from the last failed attempt? There are other risk factors to evaluate:

    1. High sales volume

    1. Subscription-based model

    1. A new venture with no business credit history

    1. International clientele

    1. Poor credit score or bankruptcy

The list never ends. The industry standards haven’t changed much to help the cause of merchants. Yes, the upside is the penetration of offshore service providers. 

High-Risk Merchant Accounts: Customer Education Proves the Winning Mantra 

Not every e-commerce venture is a high-risk value proposition by default. E-commerce is the present and future of commerce. You bet merchants can negate these hurdles riding upon the positive wave of e-commerce culture. Merchants cannot change the industry type or public perception. You can build your brand reputation to attract visitors to visit your site. Do you know what challenges await you next? Let’s clear them once and for all.

How do you plan to cut down and control chargebacks?

E-commerce sites are prone to fraud and higher chargeback cases. It proves a challenge for merchants and merchant service providers. Businesses should follow a proactive approach to win customer faith and confidence. They should return to you first. What’s the first thing you think when pressing a chargeback? Customers consider the experience of how they were treated the last time. 

    1. Train your customer support team to educate customers. 

    1. Concise and jargon-free language in Return and Refund policy

    1. Deploy top security measures to build a fortress around your website

What if you sell products on subscription, travel merchant, or pharmacy products?

Some e-commerce ventures are subject to strict guidelines and industry regulations. A merchant selling products on subscription, dealing in the travel sector, or pharmacy products fall in the category. You don’t want to leave any queries un-entertained. Clear doubts. Take the mystery out of your industry type.

    • Maintain ethical practices. 

    • Enrich site experiences with information. 

    • Display lab tests, ingredient lists, and customer reviews prominently. 

    • Continue publishing industry-related news on the blog. Become a trusted source in your domain. 

Entrepreneurs should approach top high-risk merchant account e-commerce with a sense of caution and a degree of faith. Now both sides are on the table, and it becomes a moral responsibility to discuss the terms and maintain transparency. It doesn’t offer you an excuse to skip the homework. At the same time, entrust the service provider. What are the factors merchants should focus on:

Processing Fees

    • As much as twice the processing rates of low-risk businesses

    • Lengthy contracts 

    • Rolling Reserve

    • Early Termination Fees 

    • Liquidated Damages Clause (Read it in detail)

Chargebacks happen. It is an undeniable fact. Merchants don’t need to feel pushed or hapless in such situations. Fight chargebacks. Don’t ever think you’re going against your customers. You’re contesting the wrong information or a lack of knowledge. Industry reports suggest merchants can reverse the wrong. The recovery process begins with information circulated during order placement, customer interactions, returns, shipping guidelines, etc. Leave the scope open for you and customers to go back and see where they missed paying attention.

High-Risk Merchant Accounts: Don’t Get Blindsided by Short-Term Goals

Finally, it’s time when you can evaluate and qualify high-risk merchant accounts. Till now, you have been doing all the talking to present your brand. How to shop for high-risk merchant accounts in e-commerce?

As a business, you need a service provider that can offer custom solutions to improve overall operations. More than anything else, look for competitiveness. Do they have experience working with businesses from your industry? See if they list all burning questions and take each one down with detailed information. Check if you can make sense of the pricing structure on their site. Don’t fool yourself with cheaper processing rates and assume the search is over. 

Subscription Billing:

An essential feature of high-risk merchant accounts e-commerce is subscription billing. Business owners need advanced subscription software to manage all transactions from a single dashboard. Unless you have key insights sitting in front, how would you fix gaps? The next task is whether you want to host check-out pages on your website or a third party. Check if you can invest in new resources to host credit card processing on your website. It adds to the brand experience. 

Seek Creative Inputs: 

Bank upon the collective knowledge of high-risk merchant accounts e-commerce. Discuss the problems and seek their participation. Selecting an e-commerce specialist merchant service proves a massive investment in your business. They come up with readymade solutions. Fraud prevention and chargeback protection tools offer peace of mind. Merchants feel secure knowing the customer’s and business’s interests are protected. It sets clear expectations on both sides. Top merchant services play a pivotal role in improving customer service. Business owners should consider service providers a key component in brand-building exercises.  

Offshore or domestic high-risk merchant accounts offer resources to compete at the highest level. Merchants should consider overall performance than buying one or two features. Begin your search knowing high-risk merchant accounts are different but don’t let it hinder your search prospects. You can find customizable features to serve customers how they expect things to be. 


Merchants operating in the travel sector or selling subscriptions struggle to get the right high-risk merchant accounts. There are several other industries. You have to set clear expectations as there are bigger challenges to overcome. Compare domestic and offshore high-risk merchant services. Take a tour of their site. Ask how they can help improve customer service across the board. 


How does a high risk merchant account work?

A high risk merchant account enables credit card processing and other types of payments to run an online or offline business. Merchants have a robust system to appease audiences and expand business.

Do high risk merchant services offer a suite of features?

Top high risk merchant services have essential and advanced features to run the business successfully. It offers a suite of payment and security-related services to focus on front-end activities.

What are high risk merchant accounts?

High risk merchant accounts deal in business types having risk elements associated with them. A few common examples are e-commerce stores, subscription-based selling, travel services, etc.

Why do businesses need a high risk merchant account?

Business owners need a top high risk merchant account to accept credit card payments and other popular payment methods. They need technology resources to offer seamless transactions and shopping experiences.

Shall I pick between a domestic and offshore high risk merchant service?

Prioritize your business requirements. Think of immediate and future goals. Businesses should protect overall interests when selecting a merchant service.

How to select a reliable high risk merchant service?

Count everything from payment types, rates, and customizable features to security. We recommend checking the customer service network and industry experience. Read reviews.

How much time does a high-risk application take to approve?

Merchants can expect anywhere between a couple of days to weeks. Submit your application with accuracy. Usually, it takes 4 to 6 days. An intense check requires weeks for approval.

Can I apply for a high-risk account as a new business owner?

The answer is yes. The underwriters would access your credit history, bank statements, and past ventures. You need to have a positive image to get your account approved faster.