Who Needs a High Risk Service provider Account?

Service provider accounts are required in order for a business to just accept credit card payments. As a service provider, there are two places you can obtain a merchant account; a bank, or a third party provider. For on-line retailers the most popular, and in most cases cost efficient, supply is from a third party service provider account provider.

A high risk service provider account is required by companies that, when compared to a ‘traditional’ items/services enterprise, are at a higher risk of:


Fraudulent Transactions

High quantity of gross sales

High rate of refunds

High rate of charge-backs

Different reasons a merchant could also be categorized as a high risk are:

Merchants Location – Some online gaming merchant account costs account providers is not going to accept retailers from sure countries.

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

Merchant Credit History – Some providers will not accept retailers with poor or no credit history.

As a result of high risk classification, most banks is not going to provide a service provider account to those in a high risk trade (resembling adult entertainment, reproduction goods, pharmacy and so on). As such some third party suppliers provide their companies to both general retailers and high risk merchants.

Merchant account providers which have been developed to service high risk merchants will usually provide a higher level of fraud protection, in order to lower the price their retailers incur. Nevertheless, in order to cowl the higher level of risk, rates for a high risk merchant account will all the time be higher than their lower risk counter-parts.

When looking for a high risk service provider account, there are a number of factors that it’s best to take into account. Rates will be probably the most vital factors, and this contains charges for refunds and cost-backs, together with transaction fees, the discount rate and ongoing fees. Then you will want to think about fraud protection, customer service and reporting available to you as a merchant.