A high-risk merchant account is an account for credit card processing which has been classified as high-risk by banks. This can be due to your industry and the amount of charge backs you get over the normal cause of business. Getting a high-risk merchant account is a process that new businesses must go through to accept credit card payments.


To be prepared for this process, here are 8 quick tips about high risk merchant services:

  • Bad Credit – The individual in your company who has the best credit should sign. If the individual signing is still considered to have “poor” credit, but is otherwise in a strong financial position, it may still be possible to work around normal credit constraints. Every credit situation is unique, so it’s important to contact a representative before applying for high risk merchant services.
  • Discuss Needs of Your Business – A company in the high risk field knows what can and cannot be done to not waste your time and get you the best rates / fees, so just be up front about the needs of your business.
  • Be Ready to Provide Certain Extra Items – You will need to provide a clear copy of your ID, voided check, marketing materials, and website. There may be additional items needed as well.
  • Expect Your Application To Take Longer Than a Low Risk Account – For many companies, a lot of accounts may take as little as one or two days. But for a high risk account, it could take five days or even longer. This is due to much harder situations to work through, more documentation, etc.
  • Provide Other Documentation or Information in Addition to the Application – Due to the increase in liability, high risk merchants must provide additional documentation. These take the form of additional business and personal financial documents and, where appropriate, other information related to the specific type of business in question.
  • Be Willing To Sign a Contract – It is necessary for high-risk merchant account providers to require contracts. The nature of these contracts will change according to numerous factors, including the acquiring bank, business, and billing models.
  • Understand The Process of Taking Payments Online Should Be Easy – You have enough to worry about just running your business.  You should of been given a clear process to receive your payments and have them be easy to access within a few days. This goes along with
  • Choose the Right Company to Help You Get a Merchant Account – Painless is committed to providing help with every aspect of high risk merchant services. They want to make the whole process as “painless” as possible so that you can focus your attention on your customers and your business.

In conclusion, a high risk merchant account is something that can be obtained but you should understand that the process is different for high risk businesses. Managing your expectations and understanding the process can help ensure you get the best possible rate.


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