High-Risk Payment Processing

What Is A High-Risk Payment Processing Solution? To answer this for you we must first define high-risk.  A high-risk merchant account that allows your company to process credit and debit card transaction sales accepting the potential exposure to fraud and chargebacks. This is a critical aspect for you to have a successful online business in today’s cashless, and electronic economy. In order to get you approved and get you paid fora high-risk merchant account is not always an easy thing. Particularly if you own a small business that relies on credit card sales for you to survive. Fortunately, there are several options available to you for merchant account processing for high-risk clients. Here are some of them we have listed for you to review.

high risk payment processing

High-Risk Payment Processing


Your merchant account is underwritten by a third-party underwriting company. Our processing bank has its own set of underwriters who approve your credit card processing merchant account. Different companies underwrite your account for different reasons. Some do it for their own profit centers, others for the customers who come to them for their e-commerce needs. Others for government or public sector customers who have to meet certain criteria for their account. Most of these companies offer different services that cater to the varied needs of their customers. They also charge differently.

Third-party processors

 In the electronic age, most of our transactions are conducted through networks. One such network is the Electronic Fund Transfer Association or the ETA. This association requires its members to adhere to federal and state laws for payment processors. Being a member of this association, and passing its test, protects payment processors. Mainly from having to pay fines for errors and omissions. These can occur when your processing transactions are of a high-risk type. We have been a long time member of the ETA.

Chargeback Prevention

Chargebacks – A second party, usually the financial institution that monitors your account. I can tell you that a major concern that my online clients have is chargebacks. You may be familiar with how this works if you operate an online business.  What happens is we can charge you a fee for any credit or debit card transaction for which we are not responsible for. You are charged for any unauthorized transaction that results in your company being charged for a “fee.” Every time a payment processor handles a chargeback, you are charged for the amount of the fee.  

High-Risk Merchant Accounts

High-risk merchant accounts – More financial institutions, like us at FintechMerchantAccounts are now focusing more on high-risk merchant accounts. This opportunity exists because of the recent COVID 19 pandemic. If you are not able to meet all of the criteria for a traditional merchant account, it will be hard for you to get a regular account. However, there are options available for you, including working with a third-party processor like us that will provide you with credit card processing and other advantages that you will appreciate.

Reserves and Overdrafts – When you have a high volume of transactions on a daily basis, you may incur overdrafts. Reserves are required to hedge your risk. An overdraft is when your customer changes more money than they have in their bank. Overdraft fees are charged to you on any excess money that remains in your account after your current balance is depleted. An Overdraft fee can usually be high. You may require your customer to pay for it in addition to a regular debit fee.

Underwriters –  Underwriters are who determine if you are a high-risk merchant. They base this on the products you sell. If you are a merchant who sells these products, you should be aware of the benefit of having a high-risk merchant account. We think that you want to ensure that your business is in good standing with the major credit card processors. You may want to work with a payment processing solutions company that specializes in high-risk merchant accounts. We at FintechMerchantAccounts can help you achieve this.

Payment Processor Companies

Payment processor companies can offer services specifically for high-risk accounts. Therefore, we can be much more concerned about your transaction details. Ensuring that your transactions go through smoothly than any other aspect of your business. A good payment processor can help you avoid all of the potential pitfalls. An example associated with a high-risk merchant account, include fraud, overdraft fees, and late payment charges.  

FintechMerchantAccounts provides high-risk merchant account payment processing offshore and domestically. I want to be able to help your business succeed and grow with my suite of payment services. So I encourage you to contact me by giving us a phone call at 617-918-7235. You can also engage with my assistant at the bottom of your screen.

As a way for us to provide you with more information that you may find helpful, please check out our other articles below: I look forward to feedback from you in my comments section.

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